International Finance
Featured Ports and Shipping

UK ports face dilemma as containers surge amid existing challenges

UK ports_IF_Image
In April, container ships arriving from Asia reached their destinations at a time when the demand had significantly dropped

UK ports are facing another set of challenges on the back of piling containers by the thousand. The excess number of container stacks is creating distress among ports as the logistics industry continues to tackle congestion in supply chains. It is reported that the piling up of containers was first seen in Felixstowe and a similar trend is underway around Southampton.

In April, European ports and warehouses were preparing to face the container crisis during the peak lockdown period. Due to the lockjam of manufactured goods, container ships arriving from Asia reached their destinations at a time when the demand had significantly dropped. 

In September,  SJG Group and and Solent Gateway established a partnership to operate the Marchwood military port. The partnership took place after observing an increase in late container vessels at DP World Southampton. 

Earlier this month, it was reported that containers from Asia to Europe might face ‘unprecedented’ delays and additional costs. Port of Felixstowe has even shown concerns that there might be high import volumes which might move through December into the new year. 

According to the port, approximately a quarter of its 26,448 vehicle booking system slots were unused. That said, 16 percent of them were unavailable on the smaller Landguard Terminal. Fall in demand and increase in containers is a massive distress to the UK ports and shipping industry, especially with Brexit nearing its transition period on December 31. 

Looming Brexit uncertainties have disrupted the UK economy over the last few years, and domestic sectors are continously preparing to cope with the crisis.

What's New

If Insights: Will UK cut its interest rate ahead of US?

IFM Correspondent

Malicious bots made up almost a third of all internet traffic in 2023

IFM Correspondent

Start-up of the Week: Keyrock, innovating digital asset liquidity in tokenized economies

IFM Correspondent

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.