The Impact of Port Congestion on International Sea Freight​

The Impact of Port Congestion on International Sea Freight​

Port congestion is a common problem in international sea freight, which has a significant impact on transportation. First, it leads to delays in shipping schedules. Ships may wait for several days or even weeks to enter the port for loading and unloading, disrupting the original transportation plan of enterprises and affecting production and sales. For example, the congestion at the Port of Los Angeles in 2021 caused many ships to wait offshore for more than a month, resulting in a shortage of goods in the US market. Second, it increases transportation costs. Shipping companies may charge congestion surcharges, and the cost of container leasing will also rise due to the shortage of containers caused by congestion. The increase in costs will be passed on to consumers, leading to rising prices of goods. Third, it affects supply chain stability. Unpredictable shipping schedules make it difficult for enterprises to plan inventory, resulting in overstocking or out-of-stock. To deal with port congestion, enterprises can choose alternative ports, book shipping space in advance, use multimodal transportation to bypass congested ports, and establish flexible supply chains to reduce dependence on a single port.

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