Peak season is upon us—just when the supply chain has new issues to deal with.
Forwarders and their shipper customers will continue to face fallout from new pressures that are expected to continue into the first quarter of 2023.
First, heat waves in China have the government there shutting down key manufacturing and imposing power cuts to reduce energy consumption. Add ongoing labor disputes in Germany that have already created a significant backlog—and more strikes are expected—and it’s a recipe for a troublesome peak season.
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More news from China.
The China-Europe route is experiencing a spike in rail system volume. The increase is largely due to port congestion, which is translating into an increase in trucking options.
A report from the China State Railway Group shows there were 1,517 Silk Road trains running in July, which is an 11% year-on-year increase. Volume is up by 12%.
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Labor tension in the UK continues as mediation talks between unions and workers at the Felixstowe container port have broken down. On August 21, 1,900 port staff and employees walked off their jobs, in a strike that is expected to cripple the port. Union officials predict that “it [the strike] will generate massive shockwaves throughout the UK’s supply chain.”
As the largest port in the UK, Felixstowe handles nearly half of all imports into the UK.
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Good news out of the air cargo industry. Despite ongoing issues—some that predate the pandemic, and now the war—it was a great year for many. 23, to be exact. These carriers and service providers achieved the Quest for Quality Gold award in the Air Express category this year in the face of many challenges and maintained world-class service levels.
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Finally, the most recent Port Tracker report indicates that import volumes are down and expected to drop even further.
A survey of several US ports shows a significant drop in volume in June—although this is a comparison against May, which was a record month. And even with the decline, 2022 volumes remain above 2021 levels.
