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How bad will traffic jams at sea be?

Nicholas by Nicholas
June 25, 2022
in News
0

Ms. Titzrath, as head of Hamburger Hafen und Logistik AG, you have an overview of the traffic situation on the world’s oceans. What will we be missing in the near future because ships are stuck in traffic somewhere?

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Patrick Bernau

Responsible editor for economy and “value” of the Frankfurter Allgemeine Sunday newspaper.

A lot is temporarily missing. This is not always due to the traffic jams in front of the ports, but to production and supply chains that are globally disrupted. There is a lack of semiconductor chips, electronic components, building materials or products that are affected by sanctions. In particular, it is about consumer goods that are manufactured in Asia, such as furniture, electronics and fashion. Not everything will come on time.

How do you explain the many delays to your customers?

We can handle incoming ships in a timely manner. Our problem at the moment is that many companies are slow to pick up their containers. The containers used to be with us for a day or two. It’s now five days and much longer. Nobody in a car factory would think of leaving a half-finished product on the production line. But that’s what it’s like when you leave a container in operation here. This limits our loading and unloading ability.

Why is there this container traffic jam?

There are a number of mutually reinforcing reasons for this. It started with the global pandemic, followed by the blockade of the Suez Canal, bad weather and now the Russian war of aggression with all its consequences. Around 100,000 truck drivers from Ukraine and Belarus are missing. In addition, there are many construction sites and weather-related disruptions to the railway.

Every train passenger notices that.

Passenger traffic still has priority over goods. This means that if more people are transported by rail, this is also at the expense of freight transport. In addition, the railways are modernizing their network. That’s great in principle. But it is now happening so concentrated that there are major capacity bottlenecks and delays.



What other causes of traffic jams are there?

Logistical disposition and ordering in stock after the pandemic experience. And maybe one or the other warehouse is already or still full.

That sounds crazy. Goods are missing everywhere, but the warehouses are full?

For example, there could be goods that are now sanctioned by the Russia conflict or are not in demand to the same extent due to changed consumption.

The headquarters of Hamburger Hafen und Logistik AG in the Speicherstadt.  The group operates three out of four terminals in the port of Hamburg.


The headquarters of Hamburger Hafen und Logistik AG in the Speicherstadt. The group operates three out of four terminals in the port of Hamburg.
:


Image: Niklas Grapatin

Do customers also leave containers with you because their own production is halted due to a lack of parts?

The procurement of goods is currently difficult worldwide. Because of the delays in the last year, companies may be ordering more than they currently need – and then the delivery suddenly arrives unplanned. Or the amount that was needed last year was bought. Back then, people traveled less because of Corona. Instead, they bought garden furniture, cooking utensils or building materials for renovations. Then the companies now get goods that they cannot sell to the same extent. Possible consumer restraint in the face of inflation and war may also play a role.

When will the ships that couldn’t get off in Shanghai because of the lockdown arrive in Hamburg?

Depending on the route, about six to eight weeks. We therefore expect a wave of up to ten percent more Asian loading volumes, not all of which are destined for Europe, but a large part.

Tags: electronicsHHLAISIN_DE000A0S8488Port of HamburgShipsupply chaintraffic jam

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