Port Congestion
Forwarding to the U.S & Canada
Worldwide port congestion and it's effect on forwarding goods to Canada:
The ocean freight forwarding industry has been greatly affected by the Corona-19 virus. The world’s response to the 2020 pandemic has caused congestion at major ports world-wide. The result has caused container shortages and other capacity issues related to ocean freight. Consequently, “spot-quoting” and premium rates have become the norm throughout the industry. These issues are predicted to continue for the remainder of the year and likely into 2022.
Port Congestion, Delays in Depth:
The ongoing port congestion influencing factors:
- Government Regulations & Labour Constraints
- Equipment Shortages
- Consumer Demand & Preferences
- Suez Canal “EVER GIVEN”
Government Influence
Are you experiencing capacity issues?
Following proper government health regulations throughout the world, has resulted in a slowdown of services everywhere. Many facilities continue to experience labour shortages as they are required to enforce proper social distancing measures for their employees.
Equipment Shortages
There have been severe shortages of essential equipment, such as shipping containers. Consequently, the movement of freight is being greatly delayed as it is being held for longer periods. The turnaround time of empties is lengthened which is causing further delays.
The Growth of Ecommerce
Consumer Influence
The increase in consumer demand has had a lot of influence in the freight forwarding industry in the past year. The ecommerce industry has experienced drastic growth as more people are choosing to shop online. Additionally, there has been a shift in consumer preference to expect direct home delivery. These expectations have created a greater demand for IFF and the courier services that follow.
Suez Canal
In spring 2021, the vessel EVER GIVEN got stuck en-route to Europe via Suez Canal causing a delay of two weeks. As a result, other vessels were also subjected to this delay as they were forced to wait in line. It took 2 weeks for EVER GIVEN to pass through Suez Canal. EVER GIVEN was carrying 20,000 TEUs alone. Whole of Far-east is again facing shortage of equipment and increased backlog of exports due to this issue. Many shipping lines have suspended the bookings from China to UK, Canada, and, to USEC Ports. This issue is expected to last until the end of June.
Continuing trade during port congestion
The rise of globalization has opened up new markets for businesses everywhere. Selling internationally helps to keep firms competitive in their respective industry. Currently, the lack of labour power working simultaneously with the other influencing factors of port congestion has greatly impacted businesses and their ability to efficiently move freight inland. These issues have prevented many smaller businesses, overseas and within the U.S. from trading in the Canadian market.
Avoid Port Congestion with the help of Frontier:
Frontier's Freight Forwarding Process:
We have the ability to provide all the interconnected services throughout the entire supply chain. This ability will help you lower the costs involved with ocean freight forwarding. Our various locations and services throughout North America work together to promote efficiencies in the process.
Once Your Freight Arrives in The U.S:
Once you’ve imported into the U.S, we can consolidate the shipment at our Chicago warehouse before forwarding to Canada. We can then assist you with your customs clearance and ship to one of our Canadian induction centres with our owned fleet. From there, our Canada-wide couriers can provide last-mile delivery to your customers.