Automotive

Shipping Delays Causing Inventory Backup

Dock worker strikes in Germany are preventing auto parts manufactured in neighboring countries from arriving in the US on schedule. Each day the delay drags on it becomes disproportionately more time-consuming to resolve.
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Shipping Delays Causing Inventory Backup

Labor slowdowns and strikes at German and Netherland ports are leading to multi-month delays on shipments carrying inventory bound for the US. In addition to enough home decor to stock an Ikea, the delayed containers are playing temporary home for lithium batteries, fully assembled vehicles, and a wide variety of auto parts, including chassis. Mercedes, BMW, and Ford were among the OEMs looking for available vessels. 

Gridlock. A product director of Crane Worldwide Logistics, Andreas Braun, said that the strikes are playing a role, but even if they ended tomorrow, there are still months of chaotic backup to address. Some transports cannot drop off products at docks which pushes back their next pick-up, leading to a series of delays adding up to a significant delay. The delay has impacted every container's step from manufacturing to delivery in the US. 

The sixth round of negotiations begins today to resolve the strike.

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