About one-fifth of the global container ship fleet is currently stuck in congestion at ports around the world, according to a study by analysts at the Royal Bank of Canada reported in Reuters (subscription).
Why it’s happening: Several factors are contributing to supply chain delays, including strict COVID-19 lockdowns in China, Russia’s invasion of Ukraine and leftover stressors from early in the pandemic.
- Shipping something to the U.S. from a warehouse in China is taking about 74 days longer than usual.
The outlook: According to the RBC study, it’s hard to project when supply chain hold-ups might begin to improve. The report says, “Global port congestion is worsening and becoming increasingly widespread.”