Delays at the Port of Felixstowe could impact US$2bn of imports.
Analysis by risk modelling company Russell Group has found just under US$2bn of UK trade imports will be impacted in the run-up to Christmas if the current ports delays at Hutchison-owned Felixstowe continue into December. The port experienced congestion and delays last year connected to its misuse of its Vehicle Booking System and pandemic PPE containers clogging the port.
Suki Basi, CEO of Russell Group commented: “The delays at Felixstowe in coping with the pent-up demand should not be a surprise to experienced observers of global trade events, as this is an issue that is affecting major ports from Long Beach to Yantian across the world.
“As Russell has argued in the past, trade is becoming more and more concentrated, as shown by previous analysis of $7.5 trillion of global trade flows through 50 key ports. So, when there is a blockage at any major port, there is disruption across the value-chain for consumers and businesses alike.”
Diversions away from UK
Clothing would be the largest commodity to be impacted by the delays, caused by a backlog of containers at Felixstowe, due to a shortage of lorry drivers which has resulted in delays in moving these containers.
Responding to the recent attention on container port issues, the British Ports Association (BPA), said: Whilst some are extremely busy, the overwhelming majority of UK ports are currently operating normally.”
He noted that in addition to global container ports dealing with backlogs in containers: “A particular issue UK ports are also experiencing surrounds the much publicised lack of haulage. This has meant that some freight is not being collected as rapidly as it would normally.”
Felixstowe is one of the UK’s largest ports with an annual flow of trade of more than US$9.6bn, according to Russell analysis. The port handles 36 per cent of the UK’s containerised freight.
The modelling was based on ten weeks of trade from 12th October to 25th December (modelled on 2020 figures).
In the coming weeks, Russell Group will be monitoring the impact of the disruption on other commodities and companies that rely on Felixstowe – as well as other significant ports around the world – in the run up to the Christmas holiday season, which is a vital period in the business lifecycle.
