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What is port congestion?
Vessels do not reach ports when scheduled, as they face longer waiting times to unload at the ports. This is described as port congestion – meaning that ships arrive at the port and cannot load or unload, as the terminal is already full. So, they can only queue up and wait for their turn to get a spot at the port.
What causes port congestion?
The causes are varied and complex -- labor disruptions, cargo surges from big ships, infrastructure needs, marine terminal productivity, and equipment shortages, among other causes. The result is chronic gridlock at many ports. Ships are stranded offshore for days, even weeks, waiting to unload.
What are ports in logistics?
A port can be defined as a harbour or an area that is able to provide shelter to numerous boats and vessels (transferring people or cargo), and can also allow constant or periodic transaction of shipment. In layman's language, a port is a place to facilitate loading as well as unloading of vessels.
What are the effects of port congestion?
The effects of ports congestion to the country economy include; high handling cost of containers, increased prices of consumer goods, stampede on the operations of production companies, decrease in per capita income of employees.
What is port congestion fee?
Owners of the cargo must pay a shipping fee to the shipping company even when the vessels are held up at ports. Some of the costs that may accrue include fuel and maintenance. These additional costs are collectively referred to as Port Congestion Surcharge or PCS.
How do you prevent port congestion?
Instead of shipping all your cargo in one single vessel, it is recommended to stagger your containers across multiple vessels. This is a much more viable option as it is less risky because if one container ship gets stuck in a port due to congestion, your whole shipment will not be delayed.