The Ever Given may be unstuck, and the canal unblocked, but the disruption is expected to last for weeks, forcing shippers to seek alternatives to avoid port congestion and delays – and some shipping lines are refusing any new bookings.
As a result, airlines and forwarders are reporting an increase in enquiries for air freighting ‘distressed’ sea freight.
“It will take at least two weeks to unravel this, if not more, with vessels being off schedule and the impact on ports at destinations,” said one forwarder.
“It’s like a champagne cork being released.”
He referred back to the disruption to air services from the Icelandic volcano in 2010, when it took several weeks for airlines to reposition aircraft back to the correct schedules.
But while shippers may want to take to the air ...
to avoid the Suez chaos, capacity is hard to come by.
Ekaterina Andreeva, commercial director for Volga-Dnepr, said: “Forwarders and brokers have been contacting us with enquiries about contingency plans, particularly in Asia.
“But [our partners] AirBridgeCargo and Cargologicair
are booked all of April. We are seeing an increase in hi-tech shipments, as well as Covid test kits – even on AN-124s. There are a lot of test kits moving, and we’ve seen some pharma-related shipments, such as supplies for vaccine makers. There is a lack of capacity in the market
, so I wouldn’t be surprised if we had enquiries for the AN-225.”She added that recent challenges in sea freight had seen “lots of forwarders booking freight that previously wouldn’t have gone by air”.
One confirmed that flights into Europe were very busy with Covid-testing kits,
as well as retail, as shops look to re-open. Metro Shipping told its customers: “We are already seeing an increase in air freight demand on all major trades to accommodate ‘distressed ocean freight’ caused through the current situation. “This will continue to grow
as the delays continue and, with an expansion in additional air freight reliance, there are likely to be rate increases applied by the airlines.”
Ms Andreeva agreed: “I think rates will go up. We can predict a busy market for a couple of months, but maybe it will lessen mid year
But rates could be elevated until the end of 2021.”
Shippers have few options. MSC last week told customers it could not accept bookings on several tradelanes, saying the Suez blockage would have “enormous consequences on schedules & equipment availability for the whole industry,
further worsening an already complicated environment.
“We are therefore no longer able to accept or confirm any booking, regardless of rate or commitments, contractual or non-contractual agreements or spot.”
Sea-air expected to be an option, with several forwarding companies
Sea freight will face significant congestion, forwarders told their customers. Lines will have to skip some calls, adding to confusion in box repositioning and delays.
Metro told customers it expected it would take at least 12 days to clear the backlog, while the...
impact on the industry would be felt for several weeks or more. “There will be at least a week, probably longer, of containers not arriving at destinations within two weeks of the Suez reopening.
There are already shortages of empty containers in many regions and territories.
“In essence there could be, subject to the infrastructure being able to handle the vessels at ports, three weeks of demand, at an already extremely busy time, arriving in a week period. Something will likely fall over and there will be failures in normal service delivery.
This episode will have a much longer & deeper outcome than a week-long delay to the vessels that have been caught up in and around Suez, that is for sure.”Ligentia told customers to expect “extended transit times, further blank sailings, port congestion & lack of empty containers
[which] will likely result in an increase in rates through congestion surcharges, PSS and other emergency surcharges”.
Covid, Suez & self inflicted harm: not a good combo theloadstar.com/suez-disruptio…

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More from @vivamjm

30 Mar
More out of SM&CU brexit madness

"UK SME retailers are having to route goods through friends and family in the EU to cater to the single market as they struggle to stay afloat in a maze of post-Brexit red tape.
The owner of an independent record label said their LPs and singles were being sent direct from a Czech pressing plant to a relative in the Republic of Ireland to post on to customers in the EU because additional costs otherwise made the sales unviable.
“VAT, admin, collection charges, plus postage and packaging, for a £20 (€23.40) album runs to about €50, nearly double” the label’s owner told The Loadstar. Compounding the issue, on 1 July the EU will introduce its e-commerce VAT package....
Read 12 tweets
29 Mar
“Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant, and the blockage has already triggered a series of further disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” it warned.
However, shippers & forwarders on either side of the canal face weeks of potential supply chain disruption – according to Leth Agencies, there are 357 vessels of all types waiting to transit Suez

There are some interesting facts & figures in this report
theloadstar.com/ever-given-ris…
...will have a global impact and lead to severe capacity shortages. It will impact all tradelanes, as carriers will seek to cascade vessels to locations where they find they have the greatest need.
Read 7 tweets
29 Mar
It must be clear to all now that UK Gov desperate for an American trade deal...any deal...priority to politically grandstand something no matter how relative little balance on market access for UK businesses vs US businesses on UK market.
Why is more not done to expose this?
The greater the accommodating of USA standards the greater the barriers will remain on EU trade and on that trade from GB to NI.
Help GB exporters (esp food/horticulture) & alleviate the NIP by aligning to EU/EEA/present UK (SPS) standards it reduces chance of a quick USA deal.
But which is more important to *UK* businesses/livelihoods/jobs?
Put another way what are the chances of Canadian or Mexican businesses (Canada or Mexico even going as far as leaving NAFTA) aligning more to EU/EEA (UK) standards instead of the USA standards on *their* doorstep?
Read 4 tweets
29 Mar
“We’ve been sold a dud,” Sharon da Costa, the managing director of Fighting Film said. “If it weren’t for Covid, people would be shouting from the rooftops.”
Any excuse?
(& again UK "sold" a "Canada/Australia" deal outside the CU&SM: these procedures always guaranteed from then)
Mike Cherry, the FSB’s chairman, said smaller businesses faced “incredibly demanding, unfamiliar paperwork”.
... “what we hoped would prove to be teething problems are in danger of becoming permanent, systemic ones".

WTF!! Another that should be sacked
theguardian.com/business/2021/…
From a friend: verifying "senior" level(s) incompetence

"I was at FSB policy meetings at HQ discussing impact of leaving the EU. It was seen as a ‘political position’ rather than a fundamental legislative change to doing business and one of the reasons I left the committee.....
Read 5 tweets
28 Mar
Another tacit way of demonstrating how dependent UK is on (food) imports from EU & EU driver accompanied hauliers ..can't afford to jeopardise that "border facilitation" priority of EU exports (& EU customs transit smugglers)
flow over compliance..
esp in peak "Hungry Gap" month
Read 4 tweets
22 Mar
You can't...but again I forecast this so very long ago. You have driver accompanied RoRo (roll on roll off ..the ferries) loads from consignor to consignee. Quickest and most most efficient.
Critical for time sensitive/perishables.
But also LoLo (lift on lift off..the ferries)
Trailers are not actually lifted on/off but *shunted* on/off with 'shunts' @MarkHazard2020..that is trailer is dropped one side by the driver and picked up the other side of the crossing by another driver. You need lots of holding space for dropped trailers & shunts/shunt drivers
It's not as quick or as efficient on ferry loading as driver accompanied RoRO..Dover & Holyhead very much strict RoRo ports with no space here for even RoRo life outside the SM&CU (hence the need for ICDs not built with need to push back full import esp SPS controls even further)
Read 7 tweets

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