According to the latest reports on Oct.18th, analysts at risk management company Russell Group Ltd. cautioned that the disruption of UK trade imports of around $2 billion could take place just ahead of Christmas if the prevailing port delays & supply issues at Felixstowe port in England continues.
Felixstowe Port is one of the largest ports in the UK, and the port delays combined with logjams, lack of containers, and truck drivers are worsening the supply chain distress. But since the supply chain is experiencing tremendous pressure across the world, losses will likely be severe.
As per the reports, the top most reasons behind widely reported delays include the ongoing container inadequacy, port delays, congestion, higher freight expenses, logistic equipment in the wrong place, and lack of haulage choices, etc.
Kevin Rimmer, Head of Cargo at McGill said, “The problem for cargo-owners is what the delays will cause to their business activities. As we have already experienced following the Ever Given’s grounding in the Suez Canal, a considerable amount of ships contain perishable goods; delays ultimately highlight that that merchandise is compromised or even useless upon landing in their objective.”
“Moreover, the unfavorable news for many cargo owners is that “delay” is usually excluded within their marine insurance. This could imply the fact that the industry could witness severe financial losses led by the port delays within the supply chain. Losses that are unmeasurable and ultimately unsustainable. ”
Read more: https://www.emeriobanque.com/news/uk-port-delays-could-affect-2-billion-trade-import
