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Navigating Port Congestion After the Suez Canal

Navigating the Impact of Port Congestion following the Suez Canal Blockage

By
Jesper Jepsen
April 5, 2021

Even before the Suez Canal blockage the shipping industry was facing extreme congestion levels in many ports across the globe, including those in the USA, Canada, South Korea, China, Singapore, and the United Kingdom. With demand remaining high, port congestion challenges will continue for months to come with increased volumes, restrictions due to COVID-19 requirements, and missed berthing windows.

Even if the Suez Canal is now open, the operational impact of a week blockage will have a ripple effect lasting for weeks:

  • A further deterioration of schedule reliability and additional equipment unbalance is to be anticipated even on Trade-Lanes not directly related to the Suez Canal.
  • Some steamship lines have stopped accepting new bookings from Europe to USA until end of April.

Marine terminals at the U.S. ports of Los Angeles and Long Beach are experiencing some of the worst congestion, with anchorage times often exceeding a week. In March, the United States passed another stimulus bill, while at the same time, COVID-19 infection rates are decreasing, multiple states are relaxing COVID-19 restrictions, and the number of people vaccinated continues to grow. Consumer spending and retail imports are predicted to remain high, and even increase, throughout the spring and summer months, providing the ports with no relief when it comes to congestion.

While it can be challenging to avoid port congestion, there are some ways to minimize the impact of port congestion and plan for success.

  1. Explore alternative gateway ports that face less congestion. With the congestion on the U.S West Coast, many are exploring other port options such as the Port of Seattle. Alternatively, some are choosing to bypass the U.S. West Coast altogether in favor of going through the Panama Canal and up the East Coast.
  2. Plan ahead. At this time, planning ahead is key and booking shipments as soon as possible can help keep your supply chain moving. With the current equipment shortages and severe congestion at ports, some levels of delays are almost unavoidable. Therefore, it is important to build extra time into your schedule to account for the current conditions.
  3. Consider utilizing other shipping methods. As in non-pandemic times, ocean freight affords the opportunity for cost reductions when compared to airfreight. However, the lead time is much longer than airfreight. When facing time constraints, air freight may be a more viable option. Another option to consider is LCL Ocean freight, smaller but more frequent shipments can keep your supply chain moving. While LCL also faces congestion issues it is much easier to be flexible and by splitting product on more vessels, better chance that cargo gets moved using multiple vessel/ports to get product through. Talk to your JAS representative for options on alternative shipping methods that fits your needs.
  4. Stay in contact with your JAS representative. With the increased port congestion, it is more important than ever to stay in contact with your local representative so that you are aware of arrival times, equipment availability, and market conditions.

For more information on how to navigate the current port congestion, contact a JAS representative.

For more information about current ocean market conditions, read our most recent ocean market update: https://www.jas.com/market.

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JAS completes the Acquisition of IAA

ATLANTA, February 20, 2025 – JAS, a global leader in logistics and supply chain solutions, has successfully completed its acquisition International Airfreight Associates B.V. ("IAA"), a specialized provider of Air, Ocean and Road Freight services headquartered in the Netherlands. This milestone follows the signing of the Share Purchase Agreement (SPA) announced in December 2024 and marks the official integration of IAA into the JAS network.

"The acquisition of IAA strengthens the JAS global logistics portfolio and access to key markets, particularly in the time-critical perishable goods sector," said Marco Rebuffi, CEO and President of JAS. "We are proud to welcome IAA's talented highly experienced team to JAS and are looking forward to delivering excellent service to our customers together."

Jur de Graaf, Managing Director of International Airfreight Associates, added, "Joining JAS allows us to expand our services globally and continue delivering high-quality logistics solutions for our customers. We are confident that our partnership will create new opportunities for our employees, partners and clients.”

IAA is one of the top 3 IATA forwarders at Amsterdam Schiphol Airport with Warehouses and Operations in the Netherlands, Belgium and Germany. IAA specializes in managing time-sensitive perishable fresh goods and livestock shipments as well as multimodal general cargo.

The acquisition strengthens JAS global service portfolio by enhancing the footprint in the European logistics market and beyond. Together, JAS and IAA teams will drive customer value through expanded service offerings, operational excellence, and an even broader global network.

About JAS

JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.

About International Airfreight Associates B.V.

International Airfreight Associates B.V. ("IAA") is a specialized provider of Air, Ocean and Road Freight services headquartered in the Netherlands. With nearly 100 employees and strategic locations and operations including Amsterdam, Aalsmeer, Rotterdam, and Frankfurt, the company specializes in moving fresh perishable goods, livestock and multimodal supply chain solutions for a diverse range of clients.

JAS Poland proudly took home three awards at the Lufthansa Cargo Partner Event in Warsaw, recognizing our outstanding performance in 2024.

On January 24, 2025, industry leaders gathered at the Renaissance Warsaw Airport Hotel to celebrate a year of collaboration with Lufthansa Cargo.

The evening brought together key partners to reflect on past achievements, discuss future opportunities, and recognize outstanding performance across the logistics sector.

JAS Poland had a standout night, earning three awards for exceptional performance in 2024:

  • 1st Place – Jumper of the Year 2024
  • 2nd Place – Performer in Revenue
  • 3rd Place – Performer in WACD Market Share

The event featured an inspiring speech by Ashwin Bhat, CEO of Lufthansa Cargo AG, and a panel discussion on the evolving landscape of e-commerce. The awards gala was a testament to the strong partnerships and shared success within the industry.

A heartfelt thank you to Lufthansa Cargo for their continued trust and collaboration. Here’s to another year of reaching new heights!

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The European Union's Sustainable Aviation Fuel (SAF) mandate is set to reshape the aviation industry, requiring airlines to incorporate a minimum of 2% SAF in their fuel mix starting in 2025. This regulation represents a major step toward reducing carbon emissions, but it also brings substantial cost challenges for carriers operating across Europe.

Impact on Freight Costs and Sustainability Surcharges

The implementation of the SAF mandate is driving up operational costs for airlines, directly influencing freight rates. To offset these additional expenses, airlines are introducing mandatory sustainability surcharges on shipments departing from or transiting through European airports. While this presents immediate financial challenges, it also serves as a catalyst for innovation and investment in alternative fuels, paving the way for a more sustainable aviation sector.

Balancing Cost and Sustainability

As airlines adapt to these regulatory changes, they must navigate the delicate balance between cost management and environmental responsibility. The evolution of SAF production, along with advancements in supply chain logistics, will play a critical role in determining how efficiently the industry can meet these mandates. Collaboration between fuel suppliers, airlines, and logistics partners will be essential to ensuring a smooth transition.

Stay Informed with JAS

To help our customers understand the implications of this new regulation, we invite you to download HERE the JAS One-Pager on the ReFuelEU Aviation Regulation. This resource provides a clear and user-friendly overview of the changes and their impact on airfreight logistics. Additionally, you can visit the ReFuelEU Aviation Regulation website for further details (ReFuelEU Aviation Regulation website )

At JAS, we are committed to clear and transparent communication regarding regulatory changes affecting global supply chains. If you have any questions or concerns, please do not hesitate to contact your nearest JAS representative for more information and tailored support.

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