5 Common Causes of Shipping Delays and Impact on Cargo Claims

Efficient shipping is the backbone of global trade, connecting businesses and consumers across the world. However, the smooth flow of goods is often disrupted by a range of factors that lead to shipping delays. These delays can ripple through supply chains, causing a cascade of issues that sometimes culminate in cargo claims. In this article, we explore five common causes of shipping delays and their potential impact on cargo claims, shedding light on the challenges faced by businesses in the marine cargo industry.

1. Global Emergencies: Unforeseen Disruptions

Worldwide events such as pandemics, wars, strikes and other emergencies can cause massive upheavals in the shipping landscape. Recent examples, such as the COVID-19 pandemic and geopolitical conflicts like the Russian invasion of Ukraine, have demonstrated the vulnerability of supply chains to unforeseen emergencies. The closure of vital ports, blockages of critical waterways like the Suez Canal, and widespread operational disruptions have led to substantial delays, leaving businesses grappling with the repercussions.

2. Supply Chain Disruption: Building Resilience

Businesses may also face shipping delays due to disruptions in the supply chain. Supply chain shortages, port congestion, freight shipping capacity restrictions, cargo roll over at the loading or transshipment ports – all contribute to delays in shipping.

3. Weather Anomalies: Nature’s Wrath

Bad weather and natural disasters can also cause major shipping delays Weather-related challenges, ranging from decreased visibility to catastrophic events like hurricanes, earthquakes, and floods, can disrupt transportation at various levels. These disruptions can lead to delayed shipments, potentially causing cargo damage and financial losses.

4. National and International Holidays: Temporal Obstacles

“Many carriers observe closures during federal and international holidays.” The accumulation of shipping orders during these holiday closures can lead to significant backlogs and bottlenecks, extending shipping delays. This phenomenon is particularly pronounced during peak shipping seasons, such as the holiday season in Q4, when increased order volumes overwhelm supply chains.

5. Labor Issues: Workforce Woe

“The shipping industry cannot function without the individuals that pick and pack orders, load and unload packages, sort them, and transport them.” Labor-related issues, including strikes, workforce shortages, and factory outbreaks, can disrupt the smooth functioning of the shipping industry. These challenges can lead to costly delays and supply chain disruptions, impacting cargo delivery and potentially causing cargo damage.

The Impact on Cargo Claims: Recouping Losses

Shipping delays have a direct bearing on cargo claims, where exporters seek compensation for damage due to delay. The financial impact includes not only the cost of the goods themselves but also potential cargo damage, storage costs, missed sales opportunities, and customer dissatisfaction.

Shipping delays will not go away or disappear. Exporters and importers must proactively prepare for the unpredictable by building resilient supply chains, monitoring global events, and fostering clear communication with all stakeholders. By understanding the interplay between recoverable shipping delays and force majeure – e.g. covid pandemic, businesses can position themselves to recoup losses.

Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.

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