International traders and shipping companies are beefing up contingency plans such as switching to China-Europe freight trains to deal with congestion at some major ports in Europe. At the port of Rotterdam, the largest freight port in the EU, empty containers, which are crucial to Asian exporters, are stranded amid a growing backlog of undelivered cargo at the port. According to the Port of Rotterdam, more than a quarter of the containers transshipped in Rotterdam is from China or has China as its destination. Industry insiders predict that the situation could be intensified in July and August when the holiday season in Europe begins. While the situation at ports lingers, several traders told the Global Times that they have diverted their goods, especially those value-added and urgent ones, from sea shipping to the intercontinental freight trains.
“We had several containers of electronic products waiting to be delivered back to China. But considering the possible risks of prolonged delivery times via sea transport, we have chosen freight trains, which are much faster and more reliable,” a Ningbo-based trader told the Global Times. The cargo train from Europe to China has been relatively more reliable, and the number of freight trains jumped significantly in June compared to 12 trains in May, according to a Yiwu-based trader. About 60% of ships traveling from Europe to Asia in April and May this year experienced delays, according to media reports. There will be longer wait times for ships in all of the major Nordic ports, Dexon International said.
Maersk said that the current congestion is not only impacting Maersk. “We observe that a lot of European ports are facing issues with labor availability at terminals but also with trucking capacity. Many customers are taking longer to clear their cargo from the terminal resulting in higher density impacting productivity,” Maersk said, adding that “empty positioning remains a high priority”. The company is planning to move empty containers back to Asia, not only from Europe, but also from other places to cater to export demand, the Global Times reports.
