In the dynamic world of international trade, various challenges can disrupt the smooth flow of goods, from port congestion to extreme weather and geopolitical tensions. Each obstacle presents a potential delay in your shipments, costing time and money.
Although they’re not all preventable, understanding the common causes of delays can help mitigate the problem. Preparing for potential delays can go a long way in reducing the negative impact of late shipments.
Port congestion
Sea freight transports about 90% of all goods around the world, including goods that arrive at ports across Canada and the United States. The largest ships can carry as many as 24,000 containers in a single trip. If a port doesn’t have the storage space, equipment, or personnel to quickly handle the incoming containers, congestion can create significant delays.
Labour shortages
Despite advances in AI and automation, importers and shippers continue to rely on workers to ensure the timely transport of goods. Strikes and labour disputes can shut down key shipping facilities such as ports, leading to increased dwell times and delays. A shortage of truck drivers can also create delays, an issue that appears likely to become more serious as large groups of older operators retire.
Extreme weather
Extreme weather can force all modes of transportation to stop. Shippers and importers will likely need to adjust to the effects of rising global temperatures to reduce delays caused by weather-related problems such as storms, heatwaves, and forest fires.
Supply chain disruptions
Sudden surges in demand or dips in supply can create slowdowns in different ways. For example, if an individual part isn’t available to create a finished product, it’s much more likely that some importers will experience a delayed delivery. Supply chain disruptions can also impact the availability of vehicles, infrastructure, and equipment required to move the goods.
Geopolitical disruptions
International trade relies on safe transport across land, sea, and air. War and geopolitical problems can impact frequently used transportation routes by making them risky or even impossible to travel. Russia’s invasion of Ukraine and the Houthi rebel attacks on the Red Sea are examples of war and instability that have caused shipping delays.
Human error and accidents
Accidents range from minor fender benders to the Ever Given, a colossal container ship that got stuck in the Suez Canal, blocking other megaships from making their deliveries for six days. Human error, such as forgetting the paperwork or using an incorrect HS code, can also create importing delays.
Many causes of transportation delays can be mitigated before your shipment begins its journey. Incorrect tariff classification codes, incomplete documentation, and mistakes in product valuation are preventable Customs delays at the border.
Shipping problems caused by weather or armed conflict can’t be predicted with complete accuracy, but importers can plan for potential disruptions by allowing for extra time, sourcing parts and products from multiple supply chain partners, or having extra stock on hand just in case.
Teaming up with a logistics partner can help your business avoid shipping mistakes and keep track of potential issues that could cause significant delays.