The Currency's Crossroads

FT Exclusive: Global supply chain crisis worsens as container ship congestion soars

The global supply chain crisis is intensifying, with container ships waiting to dock at major ports around the world reaching record levels, according to data from the global trade body, the International Chamber of Commerce (ICC).

The backlog of vessels, which are crucial for the transportation of goods, has reached an all-time high, with ships waiting an average of 14 days to unload their cargo, according to the ICC's latest report. This is up from 7 days just a year ago.

The congestion is being driven by a combination of factors, including a surge in demand for goods, particularly in the US, as well as a shortage of truck drivers and warehouse space. The crisis has been exacerbated by the ongoing pandemic, which has disrupted global trade and caused many factories to shut down.

The situation is particularly dire at the Port of Los Angeles, which is the busiest port in the US. Ships are waiting an average of 23 days to unload their cargo, with some vessels waiting as long as 30 days. This has led to a shortage of goods on store shelves, particularly in the run-up to the holiday season.

The crisis is not limited to the US, however. Ports in Europe, Asia and Latin America are also experiencing congestion, with ships waiting an average of 10-15 days to unload their cargo.

The ICC is warning that the crisis could have serious economic consequences if it is not addressed. "The supply chain crisis is having a significant impact on businesses and consumers around the world," said the ICC's Secretary General, Guy Ryder. "If we do not see an improvement in the situation, it could have serious economic consequences, including inflation and job losses."

In response to the crisis, many companies are looking for alternative ways to transport their goods. This includes using air freight, which is more expensive but faster, and exploring new routes and modes of transportation.

The crisis has also led to a surge in demand for warehouse space, with many companies looking to rent space to store their goods while they wait to be transported. This has driven up prices and led to a shortage of available space.

The situation is expected to continue for several months, with the ICC warning that it could take until the spring of next year for the crisis to be fully resolved. In the meantime, companies are being forced to get creative in order to keep their goods moving.