MAERSK SAYS SUPPLY CHAIN STRAIN TO CONTINUE FOR "SOME TIME"

Maersk expects the ongoing congestion issues to continue "for some time still" after 2022 started with more drag to the supply chain with the spread of the new Omicron variant of Covid-19.

"2021 proved a challenging year for global supply chains, seeing significant disruption and bottlenecks around the world. We saw pockets of improvements, only to get setbacks when terminals or vessels encountered a COVID-19 outbreak," the shipping line said on January 11.

"Unfortunately, 2022 has not started off as we had hoped. The pandemic is still going strong and unfortunately, we are seeing new outbreaks impacting our ability to move your cargo," Maersk added, noting that general sickness remains high as key ports in key regions are seeing new COVID-19 peaks.

The Danish shipping company pointed out that the situation is particularly challenging at several Hub Ports and Gateway terminals — including in Northern Europe and North America.

"While the numbers are far from optimal, we are pleased to see areas of developments. The Port of Antwerp had up to ten days' wait last week and this week the numbers could be down to two days. Ongoing contingency plans will always be made with the objective of minimising supply chain delays and we ask that you bear with us while we manage the overall situation as best as we can," it said.

Nonetheless, Maersk said in China, the city of Beilun is also experiencing a Covid-19 outbreak.

The shipping line said of the five container terminals in Ningbo, three terminals are located near the epidemic area but are operating "with no positive cases reported."

"Vessel calls and departures are so far running as normal, as well as loading and discharge activities. After some days with revised operations, container gate-in and gate-out activities are now also back to normal with a combined yard density of around 75%," Maersk added.

"However, trucking services in Jinhua Yongkang, the mid-high-risk area of Beilun and the area outside the Zhejiang province are suspended under the strict regulation by the epidemic prevention policy," the shipping line continued.

"As a key passage for world trade, we are monitoring the Ningbo situation very closely."

Maersk further noted that as the situation evolves every day, it is coordinating with authorities to help alleviate the situation.

"That could include slowing down the sea transit for minimal queuing, opening substitute container depots or moving more cargo via alternative modes," the shipping line said.

"We regret the impact this has on your global supply chains and we do foresee the strain to continue for some time still," it added.