Reference News recently published a report on the Website of the Financial Times that the port faces the biggest crisis since the start of container transportation. The following is a summary of the report:
Ports always face delays caused by waves, fog and storms, but COVID-19 has brought the biggest disruption since container shipments began 65 years ago.
Authorities say the outbreak highlights the urgent need for investment in ports. Over the past year, the entire port infrastructure system has been overwhelmed. There are 353 container ships stranded outside ports around the world, more than double the number earlier this year, according to kuehne & Nagel, a logistics provider.
An online shopping boom triggered by the pandemic has driven up demand for next-day services, and shipping congestion has led to stock shortages and delivery delays, pushing up prices. Border controls, social distancing rules and factory closures caused by the outbreak have all disrupted traditional supply chains, sending freight rates soaring on some routes.
Before the outbreak, ports were already under pressure to upgrade their infrastructure by automating operations, decarbonising logistics and building facilities to handle a new generation of larger vessels. And new infrastructure takes time to build.
The British company Axinwhamail says some ports may not be able to accommodate the new large ships. At the same time, the pandemic has highlighted the need for greater coordination, information exchange and digitization throughout the supply chain.
