Supply chains in Europe are experiencing constraints due to ports in the western Mediterranean operating near maximum capacity. This situation has emerged as shipping companies reroute from Asia to Europe via the Cape of Good Hope, avoiding the Red Sea, where Houthis have attacked vessels.
Consequently, large ships are offloading containers in Morocco and Spain, including ports like Barcelona, Tangiers, and Algeciras, for further distribution by smaller ships. The Financial Times highlights a significant increase in container traffic, with Barcelona reporting a 17% rise in container handling compared to the previous year. This shift in shipping routes, exacerbated by adverse weather conditions, has led to congestion. Some ships now face delays in berthing at major ports, prompting a diversion to alternative ports such as Malta. The congestion may compel companies to maintain larger inventories, potentially raising inventory costs.
Source: linkedin.com
Photo source: linkedin.com