Wednesday, March 3, 2021

Chaos in shipping hampers imports for industry

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From large shippers to small businesses, to freight forwarders and transportation companies, everyone complains about the practice of large shipping companies. shipping which are congesting ports, delaying deliveries and charging five times more for the same service.

Since November, there have been no more available containers for sea transport and some world ports have started to become seriously congested. The transport services became significantly irregular and prices soared to two, three or five times more than what was practiced before the outbreak of the pandemic, reveals Público.

The newspaper says prices are a serious problem, but the fact that it is not possible to find available space to send goods on ships as well – a situation that particularly affects companies looking to Asia in general and China in particular, raw materials, components and finished product essential to your business.

There is a great difficulty in finding empty containers to send cargo, and there is an almost impossibility to find spaces inside the ships, which kept transport lines reduced, even after the demand had not only normalized, but skyrocketed.

“It was a perfect storm”, is limited to verifying António Belmar da Costa, executive director of the Association of Portuguese Shipping Agents (Agepor).

The president of the Business Association of Portugal, Luís Miguel Ribeiro, says that the problem arises in both directions, “both in the flow of exports and imports”.

It adds that the AEP member companies reported “the enormous constraint on imports of raw materials from the eastern market for national industrial production ”, as they have seen unbearable increases in transportation costs.

Pedro Galvão, president of the Portuguese Porters Council, warns of the constraints and failures that are being observed at various points in the international flow, alerting to the possibility that, even when the ships are all in motion again and the circulation normalized , this rate increase becomes “the new normal”.

“In the year in which we have the EU Presidency, we must be able to intervene in an energetic way, as others have done, namely in the evaluation of the regime (BER) of exemption from competition rules to consortia of shipping companies, since this exemption must be granted when it benefits the consumers, which clearly, in our view, is not happening ”, concludes the APAT president, speaking to the newspaper Público.

ZAP ZAP //

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Chaos in shipping hampers imports for industry