Warning! Many major European ports are experiencing severe congestion
According to reports, European port terminals are experiencing congestion due to a large number of imported new cars, a phenomenon stemming from changes in the dynamics of the automotive market.
Electric carmakers are failing to sell as fast as expected in the European market, becoming one of the key factors contributing to congestion, according to port, auto industry and supply chain executives. At the same time, some manufacturers have booked shipping delivery periods in advance without subsequent transportation orders, resulting in vehicles being stranded at ports for a long time and unable to be transferred to inland bases and dealers in time.
It is reported that some imported electric vehicles have been stranded in European ports for as long as 18 months. Mike Sturgeon, executive director of the European Automotive Logistics Association, believes that the root cause of the congestion is the recovery of the automotive market after the new crown epidemic, with original equipment manufacturers rebuilding high levels of inventory, and the subsequent surge in electric vehicle production and the decline of small manufacturers. The influx further exacerbated inventory pressure. However, a recent significant drop in demand for electric vehicles has left manufacturers struggling to sell inventory, with ports bearing the brunt of the impact.
Sturgeon also pointed out that Europe's largest car ports Antwerp-Brugge and Bremerhaven have suffered severe congestion in the past 18 months, and in addition to a backlog of vehicles, they also face labor issues such as a shortage of stevedores. These delays bring huge economic losses to the automotive logistics industry.
While some port spokesmen said congestion had not worsened, it had not been eased either. Sturgeon believes that the disruption to shipping schedules caused by the conflict in the Red Sea has provided European car terminals with a short respite, but ro-ro terminals are operating at almost full capacity and more space is still needed to cope with inventory pressure.
In addition, OEMs are gradually changing their sales models from dealers to agents, which also requires more strategic inventory space.
Sturgeon warned that congestion at European ports is not over yet and inventories are being rebuilt, but volumes are still increasing everywhere and there is no sign that this will decrease. With sales relatively stable, manufacturers are unlikely to shut down production lines or reduce vehicle production, so congestion problems are likely to persist.
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