Sea Freight / Project44 announces a boom in shipping delays in 2021
By Ibrahima DIALLO
January 18, 2022 / 09:30

A study carried out by Project44 reveals that freight shipping delays have surged in the past year, driven in part by surging demand and port congestion.

In fact, according to the study in question, Shipping delays for goods sent by sea between China and Europe increased by 172% last year %, with an average delay increasing from 0,6 days in 2020 to 1,65 days in 2021. This trend has not been reversed between Asia and the United States.

Project44 has recorded a 144% increase between the Middle Kingdom and the main ports of the West Coast of the United States, Los Angeles and Long Beach. The average delay on this axis is set at 2,46 days.

"The exercise was complicated for shippers and consumers because the principles of just-in-time have collapsed, Project44 analysis. As shippers rushed to meet the surge in demand, everything has been implemented in terms of the capacity of ships and warehouses to adapt to this development by focusing even more on just-in-time.”

California ports still have to deal with about 100 ships cruising offshore waiting for a berth. And that's despite the measures that were taken with a queuing system last November.

The transport visibility platform noted that “ Carriers have begun to factor these bottlenecks into their forecast schedules, continues Project44.

Data that compares the carrier's originally scheduled arrival date to the actual arrival date reveals average shipping delays of 5 days during the last half of 2021”.

However, Project44 believes that the capacity issue will remain relevant this year, with shipowners still having the upper hand in contract negotiations. In conclusion, Project44 believes that "a number of shippers are now content with long-term contracts in order to protect themselves against any price volatility.".

 

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