Since the Ever Given blockage of the Suez Canal, being one of the main causes of the current port congestion issue, many carriers are limiting bookings on certain routes and/or cancelling entire vessels. This will surely impact shippers through unforseen issues such as excessive delay in cargo delivery and/or possible theft.
Congestion Impacts:
It is anticipated that the congestion will continue to cause massive space and equipment challenges, not just for certain ports, but also for surrounding ports as shippers try to redirect cargo claims.
It has been recommended that shippers with critical orders destined to South China during the next two weeks should consider air freight options, however, also anticipated is that pressure will continue to build up on already forecasted increases to shipping rates, for both sea and air freight as shippers move goods that cannot afford to be caught in the congestion.
WLG president and CEO Joe Monaghan correctly described the current situation “The slow turnaround of vessels due to port delays caused by congestion results in unscheduled blank sailings at a time when we need more sailings, not fewer.”
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Few things shippers can do today to reduce impact of blank sailings:
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Communicate closely with shipping lines if your containers are destined for possible congested ports, and therefore, may be affected by blank sailings. Shippers may need to consider a change of destination (COD) to avoid lengthy delays. Not arranging COD on time may result in cargo claims for cargo damage and/or demurrage charges at destination.
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For ports, adapting to the “new normal” will not be easy, nor fast. Having data on precisely what is going on and where exactly your containers are is invaluable.
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These changing schedules often result in the trucking industry bearing the cost of delays as they have to schedule their own pickups and drop-offs in advance with little to no visibility when a vessel arrives. This increase in uncertainty for truckers to make appointments for the delivery or receipt of containers at terminals often results in costly delays. Communicate with your trucking company closely.
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While no freight forwarder can control blank sailings, some freight forwarders are really on top of carriers’ sailing schedules and can often offer the next best option.
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Consider different shipping modes. Air freight, while more expensive, may be the only option to get your cargo to its destination on time. A combination of air and ocean freight could also work.
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When your containers have been delayed, especially when shipping fresh produce, it is a good idea to always anticipate a possible cargo claim. Remember to send notification of damage to the shipping line within 3 days of delivery, whether you need to claim or not.
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Port congestion increases the risk of pilferage from containers. As Mike Yarwood, director of loss prevention at insurer TT Club, correctly noted, “Whether it simply be at an overspill holding or storage area, or temporary warehousing, wherever and whenever cargo is not moving, it is more likely to be stolen.” Ensure your trucker/transporter checks the bolt seal number against the documents before gating out of the port, request the transporter to report any anomaly to the relevant authorities and ensure any noted anomalies are marked on the EIR (equipment interchange receipt) at time of gating out.
Well there is no real concrete solution for blank sailing shippers to avoid it. In this article we shared workable tactics and loss prevention measures on how to reduce the impact of blank sailing, potential cargo claims and associated costs for importers and exporters globally.
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