Thousands of people on strike at European ports, sellers' goods may be delayed!

As the new peak season approaches, sellers are speeding up their shipments. However, port problems have been frequent in many countries recently: German workers' strikes have affected the import and export of goods at ports in Germany and neighboring countries, causing the congestion problem at European ports to escalate again. In addition, empty container transportation is still continuing in the Americas, and Korean truck drivers have also gone on strike in Asia , which has intensified sellers' anxiety about logistics and transportation.

150,000 containers to be unloaded, European port problems escalate

Since the congestion problem at US ports last year, global supply chain problems have rapidly escalated and freight rates have also risen. However, as time goes by, the situation at ports on the east and west coasts of the United States has improved slightly. However, the congestion problem at European ports has once again attracted the attention of industry insiders.

On the 7th of this month , the German workers' strike had a significant impact on the logistics and transportation of European ports. Previous data showed that there were 150,000 containers waiting to be loaded and unloaded at German ports , and this strike may further aggravate the port congestion .

It is understood that this strike was mainly organized by Verdi, the largest service industry union in Germany . The strike was large in scope, with 5,000 workers striking at the Port of Hamburg alone . In addition, workers at the Port of Bremen and the Port of Wilhelm will also join the strike later. The purpose of the German workers' strike is to demand that relevant departments increase wages, mainly to increase hourly wages and inflation compensation .

Inflation in Europe has been worsening recently. Shortages of some products and soaring prices have affected the lives of local people. Workers hope to cope with the current rising cost of living by increasing their wages. As for Germany, its inflation rate in 2021 has exceeded that of previous years, reaching 3.1%, and this year the figure may increase further.

Although the strike took place in Germany, it also had a certain impact on the normal import and export of goods in some ports in neighboring countries. Previously, some shipping companies, such as Maersk and Hapag-Lloyd, announced to reduce voyages or skip ports due to congestion in European ports. Maersk once said that the company's ships encountered serious delays in Northern Europe , which in turn affected the return schedule to Asia-Pacific . The situation of other shipping companies is roughly similar.

In addition to European ports, a strike also broke out in South Korea on the 7th of this month . About 15,000 members of the country participated in the strike rallies held in 16 locations in the country, including thousands of truck drivers, whose ultimate goal of the strike was quite similar, seeking minimum wage protection. According to ITF reports, the strike also had an adverse impact on local ports, petrochemical complexes and other logistics hubs, and freight speeds have slowed down.

The high cargo accumulation rate at ports and the congestion of ships have put logistics in many directions into question. For sellers, the possibility of delays in related goods has further increased.

In this regard, a European logistics company said: "The current sellers' goods are already at the port, which is definitely affected. As for when the situation there will return to normal, it is uncertain. In addition, it used to take only 40 days from sailing to signing for the goods, but now it has changed. Except for Germany, France, Italy and Spain, other countries need two months. The shipment volume is originally less than before, alas!" In addition, another seller said: "I just sent the goods there, I hope there will be no major problems."

Hundreds of thousands of containers are waiting to enter the port, and the US cargo volume may surge

Although problems with sea shipping occur again and again and sellers have long been accustomed to them, every time problems reappear, sellers always feel anxious again.

According to foreign media reports, with the gradual recovery from the epidemic and the upcoming peak season, the volume of cargo shipped to ports in the east and west of the United States is likely to surge again. The peak transportation season is likely to begin at the end of June this year , which is significantly earlier than in previous years.

Relevant officials at the Port of Los Angeles in the United States believe that the concentration of shipments during the peak season , the continuous replenishment of products by retailers , and the possibility of a sudden surge in shipments in Shanghai in the second half of the year may all lead to a surge in cargo volume at its port , which will once again have an impact on the already fragile supply chain .

It is worth noting that the port still has tens of thousands of containers to be processed, and the Los Angeles and Long Beach ports in the United States have become the world's lowest efficiency logistics centers for container throughput. If a large number of containers enter the port during the peak season, the pressure on the port will continue to increase. The relevant person in charge of the port also said that perhaps the early peak season will lead to a worse situation.

Domestically, regarding the early peak season for freight, some sellers said that there is still a small amount of goods that have not been cleared. If they ship more, the goods will pile up. There will definitely be a large number of shipments, but it is estimated that it will take a month or so. Some freight forwarders also said, "It can be felt that sellers are conservative in shipping this year, and the shipment volume has slowed down compared with previous years. However, the epidemic in Shanghai has recovered recently, and the shipment volume there has increased." Public data shows that since June, the daily container throughput of Shanghai Port has been close to 120,000 TEUs, and the cargo volume of sea and air ports has basically recovered to more than 90% of the normal level.

In addition, affected by the shortage of some products in overseas markets, the country is also in urgent need of replenishing new inventory, which in turn drives the increase in freight volume. On the other hand, the US retail market has also set off a small-scale phenomenon of clearing inventory at low prices, such as the famous retailer Target. It can be seen that in terms of inventory issues, the practices of various countries are actually quite consistent.

As the peak season approaches, logistics and transportation in Europe and the United States play an important role in the sales of sellers' products. As far as the current European ports are concerned, the congestion will continue for some time, while the US market has a different performance. Although the shadow of port congestion has not yet receded, overall, there has been a slight improvement, but whether the improvement can continue remains to be seen. Sellers should pay attention to understanding the market situation and formulate or adjust the shipping plan in a timely manner.

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