Many stakeholders involved in the sea cargo supply chain Gulftainer COO tells industry leaders

Ports congestion and rising freight costs are impacting heavily on global supply chains. The focus on larger container vessels serving a dwindling number of mega ports has limited the choices of shippers and receivers and created a rush to ship through traditional major gateway ports, leading to backlogs and displaced containers.

“There needs to be an effort to decentralise cargo movement or at least reconsider the speed with which industry appears to be centralising the distribution of goods”, Dave Casey, group chief commercial officer at Gulftainer, told industry leaders during a Cool Cargoes webcast discussing ‘Managing Congestion in a Relentlessly Disruptive Era’.

Casey, told a panel of industry leaders that whilst larger ports are buckling under the pressure of high levels of congestion, facilities that can handle smaller container ships and general-purpose ships.

The global shortage of reefer containers has impacted perishable imports, which due to the seasonal nature of these refrigerated commodities, further exacerbates congestion, as Casey explained: “The condensed nature of certain products such as grapes and clementines leads to more pressure. Many of the ports where fruits and vegetables originate from, such as South Africa, Chile and Morocco, are much smaller with less sophisticated infrastructure than Asia, North America and some European ports. In the event there is a delay or port omission, this can further exacerbate the congestion.” This delay is currently evident in the main ports in Chile, which are congested and are giving priority to container vessels. “The conventional reefer ships that carry the majority of GTW’s fruit from Chile are being forced to load at alternate and multiple ports, which will cause difficulties for exporters and growers to get their products to market on time.”

With many stakeholders involved in the sea cargo supply chain, it is difficult to ascertain where the responsibility for control sits. Traders, shipping lines, drivers, feeder vessels and government departments all have a part to play to help reduce an already struggling system, as Casey said, “Shippers need to maintain a degree of flexibility over origin sailings, and by tightly controlling and prioritising cargo, efficiently handling customs clearance documentation and payment this will give importers the best opportunity to release and advance cargo through the networks.”