by Manal Barakat, SeaNewsEditor
Following the three-day strike in the ports of the US East Coast, sea freight market analysts wrote about delays in shipping journeys from North to South America.
The Journal of Commerce claims that ships sailing from the US are arriving in the southern ports with disrupted schedules, eventually causing delays.
Danish container carrier Maersk reported delays of up to three weeks at its terminals in Brazil, Argentina and Uruguay. Meanwhile, delays have reached up to seven days in Paranagua and Brazil’s Portuário terminal in Santos.
Ports in South America have also been experiencing their own challenges caused by labour issues and high volumes.
Port strikes in Brazil, involving dozens of thousands of workers, halted operations for 12 hours on 22 October at the Port of Santos.
Maersk further reports that the East Coast of South America has been experiencing congestion and waiting times due to the high volume of vessels and cargo.
Container terminals at Lazaro Cardenas and Manzanillo, Mexico, are particularly impacted by continuing yard congestion and low productivity.
Customs processes add to the delay at ports
In addition, analysts highlighted a tight situation at Mexican ports, primarily due to customs clearance delays amidst increased volumes.
Mexico handled 14.8% more containers in the first eight months of the year compared to 2023. At Lazaro Cardenas, container throughput surged by 28.7% from January to September. Consequently, the average import container dwell time jumped to 11 days.
Customs processes and staffing shortages add to the strain as they are seen as the most time-consuming, with an average of 2.9 hours spent on formalities at Lazaro Cardenas.
Industry experts called for cooperation between logistics associations and customs authorities to address these issues, including the potential for 24/7 customs operations and digitalisation of processes.
Improvements and upgrades have recently been introduced at Lazaro Cardenas, but experts claim more comprehensive measures are needed.
Geopolitics and climate change impact smaller states
In a recent review, the United Nations Conference on Trade and Development (UNCTAD) highlighted the impact of geopolitical conflicts and climate change issues on the maritime sector in Latin America and the Caribbean.
According to the UN review, geopolitical conflicts globally impacted the Latin American region, particularly small island developing states.
These states have seen a 9% decline in maritime connectivity over the past decade, resulting in higher costs and reduced competitiveness.
In addition, severe droughts in 2023 and early 2024 drastically reduced water levels in the Panama Canal, forcing ships to take longer, more expensive routes.
This led to a 31% increase in sailing distances and reduced cargo volumes, highlighting the canal’s vulnerability as a critical maritime route.
