Yahoo Finance Ports chaos hits firms' supplies as Honda forced to halt production
Watch: Honda suspends production at UK plant due to transport delays
UK logistics chiefs are urging the government to help fix growing delays at Britain’s ports, as Honda revealed disruption had forced it to halt production.
Ports around the world have been under pressure from higher shipping volumes linked to the pandemic, and Felixstowe is among those which have seen higher demand spill over into major bottlenecks.
There are fears that new Brexit trade rules and checks in a few weeks’ time could exacerbate delays and disruption.
Carmaker Honda’s UK plant in Swindon was forced to close altogether on Wednesday, citing “transport-related parts delays.” A spokesperson told Yahoo Finance UK it hoped to restart production “as soon as possible.”
Transport and storage bosses have now written to the department for transport warning it cannot be “complacent” and asking for help.
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“Although we are hopeful that the current peak of port congestion has passed, high volumes remain and could persist for some months, running into the period of the end of the EU transition,” warned the heads of Logistics UK, the UK Chamber of Shipping, and the UK Major Ports Group.
“The current situation has arisen in part from imbalances that accumulated over months. Reversing this accumulation is not an overnight task.”
But they acknowledged there would be limits to what the government could do.
A department for transport spokesperson said: “This is not a problem unique to the UK, with ports around the globe experiencing similar container capacity issues. The department and partners across government are working closely with the freight industry to work through the challenges some of our ports are facing.
“Resilient supply chains and free flowing freight are integral to the UK economy and we will do everything we can to resolve the situation as quickly as possible.”
The Port of Felixstowe released a statement earlier this week warning it was working hard to “maintain vital supply chains” and minimise the impact of a spike in container volumes. It has also highlighted a “high number of slow-moving containers of PPE occupying storage space,” which are worsening the disruption.
It said it was fully operational, but warned challenges could continue into the New Year. It hopes excess PPE volumes will be cleared within a week, and has hired more than 100 extra drivers as well as new engineers and upgraded COVID-19 testing to “maximise labour availability.’
Meanwhile reports have also emerged of issues at the Port of Southampton. Westbound Logistics said they were experiencing similar problems to Felixstowe, “including severe congestion, empty containers being refused and no vehicle booking system (VBS) transport booking slots being available.”
It claimed the issues had resulted in failed deliveries, transport backlogs and prices increases. “Southampton has been overwhelmed partially due the clamour to divert from Felixstowe, an issue we warned customers about not too long ago,” it said on its website.
A UK spokesman for DP World, which runs Southampton’s port, said: "The confluence of Covid, seasonal trade, and Brexit is placing understandable pressure on the UK port network. Our teams at London Gateway and Southampton are working tirelessly to manage the additional traffic through our ports while maintaining our high customer service standards."
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Honda’s issues come just a day after industry chiefs from carmakers to plastic firms to food and drink producers also sounded the alarm over Brexit disruption in a few weeks’ time.
Bosses told a committee of MPs they needed more clarity on how trade would be affected by the end of the transition period, which will mean new paperwork and checks for many firms and potentially tariffs.
“Goods will arrive late, they will arrive potentially tatty... and there may be interruptions randomly in supply,” warned Ian Wright, chief executive of the Food and Drink Federation (FDF), on Tuesday.
“The key fact is not ‘am I prepared,’ but ‘is the person driving the lorry in front of me prepared?’ If I’m behind that person in the queue I have no control. I have no idea when I’ll arrive.”
The department for transport has been approached for comment.
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