ShareBIG LOSSES WHEN STORING GOODS IN THE WAREHOUSE FOR A LONG TIME
According to the latest report by Sea-Intelligence, they have conducted statistics and come up with an estimated number of tens of billions of dollars lost in the storage of goods at the port or factory warehouse. The reason for the situation is mostly due to port congestion and a number of other factors.
Before the pandemic, the economic situation was stable, most of the problems related to transportation of goods took place in accordance with the process. Contrary to the past, now, schedule delays by shipping lines have become more common than before and are even more frequent.
A report by Sea Intelligence has also shown that more than 70% of cargo ships are behind schedule compared to the original process. They also found that many freight trains were delayed by more than 20 days. The reason why the ship is delayed is due to being held for a long time at the port/factory’s warehouse before loading. Therefore, this is the cost of inventory to shippers at different rates according to the value of the goods and capital gains.
Up to now, the congestion situation at ports has been somewhat better than last year. However, it still has the potential to cause similar problems for many customers. Especially during the recent Covid-19 epidemic, a number of major ports in China such as Shanghai and Ningbo had to comply with the State’s regulations with the Zero-covid policy, restricting domestic and foreign imports. Breaking the freight schedule greatly affects the other ports in the routing.
It can be seen that some of the above reasons for delay are unintended, unlucky, and unavoidable. However, Loyo Logistics always tries to minimize the consequences as much as possible by regularly updating customers about shipping status, about unexpected changes. We always want to bring the best solutions to our customers, minimize the risk of delays, and we can even find an alternative route to deliver the goods in the most reasonable time.