Port Congestion Removes 12% of Global Container Shipping Capacity

What if port dwell time increases by 5 days due to ongoing congestion?

Model the impact of adding 5 additional days of vessel and container dwell time at ports across major gateways. Simulate effects on inventory carrying costs, order-to-delivery lead times, working capital requirements, and potential stockouts from delayed replenishment. Calculate the cost of increasing safety stock to compensate for extended lead times.

What if I shift 30% of my container imports to alternative ports to avoid congestion?

Simulate a scenario where a shipper diverts 30% of their containerized import volume from congested primary ports to secondary or regional ports. Model the impact on total supply chain cost including ocean freight rate changes, inland transportation to final destination, handling fees, and potential service level improvements from faster port clearance. Measure the breakeven point for diversion.

What if I increase safety stock levels by 20% to buffer against port delays?

Evaluate the tradeoff between increasing inventory buffers by 20% versus accepting higher service level risk during the congestion period. Model inventory carrying cost increase, warehouse space requirements, potential obsolescence risk, and the service level improvement achieved. Compare to the cost of expedited freight alternatives.