How port congestion affects global trade

Perhaps this is a time for you to relocate. And, of course, you want your precious belongings to bring with you. However, if you planning an international move, your items might need to be shipped. That’s why it is important to think and plan carefully. Since it might make transporting your belongings late and past delivery time. Here, reputable shipping and logistics companies will provide you will all the necessary information about port congestion. Let’s see how port congestion affects global trade.

What is port congestion?

First of all, let’s see what is port congestion. It is an occurrence when ships arrive at the port and cannot load. Or unload. Since the port capacity is already full.  Hence the only choice for the ships is to queue up. Because of that, ships have to wait for their turn to get a spot at the port. Therefore the estimated waiting time at the ports is increased. You can notice that the waiting time has significantly increased. Usually, ships wait from 45 to 55 hours. Mega-ships are only adding to the pressure. Hence, port congestion creates pressure on cargo owners, shipping lines, and port management. That’s how port congestion affects global trade.

Ship with the cargo
Port congestion affects the shipping companies too

The solutions may be following:

  • The port management might increase efficiency in handling the ships
  • Expand the infrastructure of the ports
  • Hire more workers

Don’t let this worry you. There are many international shipping options that you can consider.

How port congestion affects global trade and shipping companies

We all know that ports are an integral part of any international trade. But, port congestions are blocking the efficient implementation of activities between ships and ports. Hence, shipping companies are losing time and, unfortunately, money. Another major cost is increased fuel consumption. Any other cost that can occur from this is equal to the time the ship spends on the port waiting. You can see another impact of port congestion. It is an increased anchorage wait time. Because ships must wait at the anchorage before they can enter the port. Anchorage is a location where the ships can halt. And also protect themselves from bad weather. All of this is also influencing the shipping to Saudi Arabia too.

Penalties and how port congestion affects global trade

It is only logical that port congestion and demurrage are deeply involved. The person who is a container user is the one being charged demurrage. So, a one-way container is losing. There is a specific number of free days to deliver the container back to the shipping line. But because of port congestion, the delivery is not back in time. In those situations, a person can be charged with demurrage. Charged for every day you’re late. Any additional time beyond the agreed time is called Laytime and the penalty is charged. So, think carefully about logistics and shipping sea cargo to Jeddah in order to avoid penalties.

Ship and unloading the cargo
There are penalties due to effects of the port congestion

Logistics

As we can see, port congestion is a dangerous threat to maritime logistics. Because of it, the shipping companies can be forced to increase their operational costs. That’s how port congestion affects global trade. However, don’t let this affect your decision to relocate and move your belongings. There are many effective ways to move to a new country.

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