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    Soaring Demand, Port Congestion, and Container Shortages Continue to Strain Production Lines Globally. - Blog.

    The latest news, videos and workouts from the Escape Fitness Team.

    Soaring Demand, Port Congestion, and Container Shortages Continue to Strain Production Lines Globally.

    As you may know, unrelenting consumer demand and the global shortage of shipping containers, primarily caused by the pandemic, has led to drastic inflation in shipping and container prices and ongoing delays for the delivery of Escape equipment.

    Our team is trying our best to manage and mitigate these very challenging, and unprecedented, circumstances to restore some sort of rhythm and catch-up on inventory.

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    We are frequently asked by valued partners, distributors, and dealers just like yourself why orders are delayed and why production lead times continue getting pushed further back.

    Therefore, we hope to provide you with greater understanding of the situation by breaking down the main issues causing the supply chain disruption.

    The industry is currently facing unprecedented challenges due to disruptions to supply chains but as the year progresses, Escape anticipates seeing improvement on the horizon.

    IT'S GOING TO GET WORSE BEFORE IT GETS BETTER.

    This situation looks to get worse before it gets better for bookings to the UK, Europe, and US over the next few weeks, as the impact of incorrectly positioned vessels and equipment, brought about by the Suez issue, starts to impact Asia further.

    In March, the weeklong Suez blockage held up $9.6 billion worth of a goods a day. This situation effectively sent the Asia ocean freight market into crisis mode, impacting equipment availability, container space, and driving rate up even higher.

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    Last month, project44, a tracking and analysis platform for shippers and logistics service providers, reported that four out of every 10 shipping containers (39 percent) missed their scheduled sailing.

    THERE IS A LACK OF CONTAINER CAPACITY EVERYWHERE.

    Carrier schedule reliability is worst it’s been all year. 

    Before the pandemic, shipping goods by ocean took anywhere from 20 to 30 days. Today, shipping takes approximately 60 to 75 days, while airfreight takes three to five days.

    This lack of reliability has inevitably stretched the functionality of supply chains and logistics to their limits.

    It’s an illustration of the problems Escape and other U.S. importers are currently struggling with to deliver products to customers.

    Space remains limited globally as carriers willingly accept higher priced cargo, which has resulted in a backlog of product waiting to be delivered and increases the time a container takes to move on to its next destination.

    Ocean freight movements from Asia to the UK, Europe and US, have already reached critically low levels for May.

    Shipping vessels that have been impacted:

    • Vessels on their way to Europe from Asia
    • Vessels on their way back to Asia after discharging in Europe
    • Vessels that were stopped from leaving Asia as a congestion precaution during the blockage
    • Vessels that were rerouted around Africa to avoid the blockage

    UK / Europe

    Bookings are still affected by huge cancellations and space remains incredibly hard to come by even at premium levels.

    Asia continues to tighten bookings for European exporters. The space situation remains rigid in May with further blank sailings and vessel delays due to port congestion.  

    Among the shipping routes with the biggest year-over-year increases was China/East Asia to North Europe. The cost to ship a single container from Shanghai to Rotterdam rose an astonishing 418%, according to Freightos data.

    US West / East Coast

    Bookings are still affected by huge cancellations and space remains incredibly hard to come by even at premium levels.

    The Ports of Los Angeles and Long Beach in California have been experiencing an average of 30 container ships per day sitting idle in the ocean waiting to deliver their goods.

    On top of these delays on the West Coast, it is estimated to take 10-15 days to move goods from the port to the rail and another 10-15 days to reach warehouses. Possible delays can be up to 60 days.

    Shipping on the East Coast is slightly better, though the Port of New York is experiencing the worst delays.

    It has been brought to our attention that rail lines are preferring to haul 40ft containers as opposed to 20ft containers, as these must travel in pairs along the rail system to the same inland destination port. This is yet another issue that can slow the shipping process further.

    There is also the issue of limited availability of lorry drivers and road chassis on the East Coast.

    OVERVIEW.

    • The Suez Canal blockage has had a ripple effect on global capacity and equipment making shipping difficult, long, and expensive
    • Every container that becomes available is being fought over
    • Increasing demand is forcing the prices upwards, easing around June/July
    • Ports in Asia, the UK, and Europe are still struggling with congestion
    • Ports and terminals on the US West and East Coasts are in crisis mode
    • With ports running slowly, vessels are taking longer to get back to Asia, as are empty containers
    • All of the above is contributing to a much higher demand for air freight due to the lack of passenger flights, which is driving up the price

    PLACE YOUR ORDERS NOW.

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    With the situation being unprecedented and ever shifting, we encourage you to consider placing any and all Escape orders now, especially for equipment you'd like to receive in the next 6-12 months.

    We want you to be confident in your purchases. Escape is committed to delivering the best functional training equipment and we're here to support you as this 'ripple effect' of the Suez Canal blockage continues.

    Get in touch with our team today with any questions you may have or to place an order.

    Escape Fitness UK
    +44 1733 313 535
    [email protected]

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