Global trade shows a slightly positive trend in June as North America sees some improvement, but there is “unusually long” congestion in the North Sea, according to the latest Kiel Trade Indicator data update.
BERLIN, July 6 (Reuters) – More than 2% of global freight capacity is at a standstill in the North Sea, an expert from Germany’s IfW economic institute said, a “very unusual” situation for the ports there.
“There is currently no end in sight to the congestion in container shipping,” said IfW’s Vincent Stamer, adding that traffic jams were also growing outside Chinese ports.
“For Germany and the EU, this affects overseas trade in particular, especially with Asia, where consumer electronics, furniture and textiles, for example, are shipped from.”
Logistics companies have been struggling for months with shipping container schedules, which have been thrown into disarray due to the war in Ukraine and lockdowns in China.
German logistics firm HHLA last month appealed to every link in the supply chain, from clients to railroads, to coordinate better in the face of war-induced disruptions.
“Just-in-time production carries risks. And volatility requires flexibility from everyone,” said CEO Angela Titzrath.
There are also roughly 20% fewer container ships in the Red Sea – the most important trade route between Europe and Asia – than expected under normal circumstances, said the IfW.
The last time the gap was this large was after the outbreak of the coronavirus pandemic two years ago, according to Stamer.
(Reporting by Rene Wagner and Jan SchwartzWriting by Miranda MurrayEditing by Bernadette Baum)
(c) Copyright Thomson Reuters 2022.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 108,815 members that receive our newsletter.
Have a news tip? Let us know.
The Panama Maritime Authority, which oversees shipping and port infrastructure in the country, will request all legal and financial documents from a key transaction between CK Hutchison and a consortium backed by BlackRock, minister to presidency Juan Carlos Orillac said on Friday.
CMA CGM is in talks with shipyards about the possibility of having medium-sized container vessels built in the United States, the French shipping group's CEO Rodolphe Saade told Les Echos newspaper.
The National Hurricane Center (NHC) achieved unprecedented accuracy in hurricane track forecasting during the 2024 Atlantic hurricane season, according to a preliminary forecast verification review by the National Weather Service....
Maritime and offshore news trusted by our 108,815 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
