In its market update statement, Sealand states about warehouse stocking issues faced by businesses and retailers as a result of rising return rates and supply exceeding demand.
In Europe, port congestion continues to decrease, according to Logistics Management. Moreover, there are currently no significant disruptions. However, berth wait times of three to four days are currently being observed in Mersin, Turkey. This is affecting logistic services and may cause delays at other ports.
However, inclement weather interruptions typically cause minor vessel-level delays during the winter, which can ripple the network. And, advisories will be issued when necessary to keep customers informed of any port or vessel delays caused by conditions. Even though things are going well right now, they could change quickly. Customers should continue providing accurate forecasts, collaborate closely with stakeholders to plan ahead, and protect their supply chain in the end. Negotiations for a Collective Labor Agreement (CLA) are currently underway in Rotterdam.
In Europe, the production volume of goods is decreasing continuously, as stated by Eurostat. Consequently, bottlenecks in the capacities of European truck traffic are vanishing. However, the International Road Transport Union (IRTU) states that the shortage of HGV drivers will continue to be a problem in 2023 as well. To keep supply chains moving, service providers will need to keep an eye on the situation and take necessary steps.
A brand-new reefer rail option that connects Spain and the United Kingdom expands the market’s capacity elsewhere. To begin with, there will be three weekly departures from Valencia to London for the service. This schedule will guarantee that cold chain products are delivered to their final destination on time.
The need for intermediate storage for the surplus of goods is growing as inventory levels in European warehouses remain high. Companies will need to keep an eye on the market and make adjustments to minimize any negative effects on customers.