The three-day port strike in the eastern United States caused a significant reduction in shipping capacity
The end of the US East Coast port strike after only three days was much smaller than feared due to the short duration of the strike, but nonetheless the three-day strike did lead to a queue of ships waiting to berth, which will have a negative impact on capacity supply. The most optimistic view is that the impact will be limited to the three days of the strike, but in reality, there could be a loss of capacity for about a week as it will take some time to clear the backlog of ships and containers.
On the Mediterranean to the US East Coast route, a three-day impact leads to a 10% loss of capacity in week 43, increasing to 25% if the impact lasts a week. According to Sea Intelligence, shipping companies are unlikely to take action to alleviate the capacity shortfall, as this would mean a significant increase in speed, and shipping companies will not take actions to contribute to the recent decline in freight rates since the end of the strike. As a result, exporters in Asia, northern Europe and the Mediterranean need to prepare for short-term capacity constraints.
On the Mediterranean to the US East Coast route, a three-day impact leads to a 10% loss of capacity in week 43, increasing to 25% if the impact lasts a week. According to Sea Intelligence, shipping companies are unlikely to take action to alleviate the capacity shortfall, as this would mean a significant increase in speed, and shipping companies will not take actions to contribute to the recent decline in freight rates since the end of the strike. As a result, exporters in Asia, northern Europe and the Mediterranean need to prepare for short-term capacity constraints.
