Navigating Port Congestion After the Suez Canal

Navigating the Impact of Port Congestion following the Suez Canal Blockage

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.

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.
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.
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.
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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Dubai South, the largest urban master development focusing on aviation, logistics, and real estate, has inaugurated the new regional headquarters for JAS Middle East, a global leader in logistics and supply chain solutions.

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Dubai South, the largest urban master development focusing on aviation, logistics, and real estate, has inaugurated the new regional headquarters for JAS Middle East, a global leader in logistics and supply chain solutions.
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The inauguration ceremony was attended by HE Edoardo Napoli, Consul General of the Republic of Italy in Dubai, Biagio Bruni, Founder & Chairman of JAS Worldwide, Mohsen Ahmad, CEO of the Logistics District, Dubai South, Erwin Wittemaier, Area VP of JAS Middle East, as well as other senior executives from both entities.
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Designed to set new benchmarks in sustainability, efficiency, and technological innovation, the 19,170-square-meter ‘Build-to-Suit’ facility marks a milestone in the company’s regional expansion. This ESG-compliant warehouse is tailored to meet specific logistics needs, reinforcing the company’s commitment to growth and excellence while enhancing its ability to serve the entire Middle East market.

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In his comments, Mohsen Ahmad, said: "We are pleased to attend the official opening of JAS Middle East’s new headquarters at Dubai South. This new facility will cater to the UAE and the wider Middle East region through best-in-class logistics solutions. We are proud to see the Logistics District flourishing with global industry leaders such as JAS, recognising the strategic advantages we offer to support their growth and expansion. With its cutting-edge design and ESG-compliant infrastructure, this facility enhances Dubai South's role in shaping the future of aviation and logistics in the region."

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As a trusted international freight forwarder, we understand the challenges that come with navigating global trade, especially with the recent announcement of reciprocal tariffs. Now, more than ever, it’s crucial for businesses to stay agile and optimize their supply chains. We are excited to offer you strategic solutions through our Foreign-Trade Zones (FTZs) in the USA and Panama to help mitigate tariff impacts and streamline your logistics.

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By leveraging our FTZs and Panama’s logistical advantages, you gain flexibility, efficiency, and a competitive edge in today’s rapidly changing global trade environment.

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Our team is ready to discuss how our FTZs in the USA and our Panama logistics hub can benefit your business. Don’t wait—take full advantage of these strategic locations and the opportunities they present during these uncertain times.

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JAS ECONTAINER isn't just about operational efficiency—it's about driving meaningful change in the industry. Sinka emphasizes the product's positive environmental impact, citing its adoption of Marine Biofuel programs through insetting to achieve a net-zero carbon footprint.

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Beyond its environmental benefits, JAS ECONTAINER offers a competitive edge in the market. Sinka notes that the product bridges the gap between traditional LCL and FCL offerings, providing cost-effective solutions for shipments ranging from 20 to 50 CBM.

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