Record Global Port Congestion Strands over Four Million Container Units
Stranded capacity exceeds previous pandemic peaks causing vessel shortages and upward pressure on container spot rates.
Ocean Transit
Maritime Movement
Sailing journeys of a vessel between two ports constitute the longest and most variable portion of an international supply chain. During ocean transit, the speed of the ship and the chosen route determine the lead time for the goods carried on board. The phase is subject to the conditions of the sea, the efficiency of fuel consumption and the political stability of key chokepoints like the Suez or Panama canals.
Planning Variability
Preparing for the arrival of goods requires an understanding of the factors that can lengthen or shorten the time at sea. While a standard voyage might take twenty days, ocean transit can be extended by heavy weather, engine maintenance or the decision of a carrier to slow steam to save fuel. These fluctuations force importers to maintain buffer stocks to ensure that their production lines or retail stores do not run out of product.
Advanced telematics now allow for the tracking of a vessel in real time, providing more accurate estimates for the arrival of the cargo. Such visibility helps logistics providers coordinate the inland transport that must happen once the ship reaches the dock.
Operating Costs
Financial expenditures for a shipping line are heavily influenced by the speed of the journey. Ocean transit managed at a lower speed reduces the amount of CO2 emitted and lowers the total fuel bill for the carrier.