Summer Supply Chain Update – European Strain

Looking forward into the coming weeks and months ahead, it is important to understand a few logistical strains which will affect cargo lift as well as schedules both for Air and Sea freight. 
 
Airfreight 
With summer travel ramping up and fewer pandemic restrictions in place, airlines are expecting a high demand for passenger travel in the coming months. However, due to staffing shortages, we are seeing a reduction in flight capacity. 
 
More passengers per flight often indicates less space for cargo in the belly of the aircraft, and when combined with labor shortages across Europe, this could cause capacity issues throughout the continent and abroad in and out of the US. 
 
Some airlines are placing embargoes on certain perishable commodities due to the uncertainty of capacity and schedules, as such please contact your DSV representative with specific questions which may relate to your sensitive products.
 
Seafreight
Seafreight is also experiencing similar labor shortages plaguing the European ports. It is reported and expected that dockworkers in Germany, according to The Maritime Executive, are currently in the midst of the longest strike in 40 years, which began the morning of July 14th at 6am. 
 
Concerns are rising that blank sailings and avoidance of the area will cause ripple effects into Asia affecting other trades. DSV is watching this situation and will update accordingly.
 
A similar strike took place earlier this month in France.
 
These strikes are bound to have adverse supply chain impacts across the continent coming at a time when major European ports are grappling with a congestion crisis. 
 
Together, these conditions mean we could see an earlier peak season this year and higher capacity demands could continue through the end of this year. Please reach out to your DSV representative to ensure your supply chain is prepared to handle these uncertainties.
 
Sources: 
https://www.bloomberg.com/

https://maritime-executive.com/

https://www.reuters.com/