Congested Kwai Tsing port suffering from huge traffic jam on water

Gridlock at Kwai Tsing container port in Hong Kong impacts everyone. Stacks of containers occupy virtually every open space in the yard. Cranes and trucks rush around and there is almost no vacant berth.

The congestion is at its worst in the second to third quarter of a year when Asia-based manufacturers scramble to get cargoes out in time for the Christmas and New Year holiday shopping spree in the West. Retailers in Hong Kong are also fretting if their cargoes can make it out of the port in a timely manner.

"Over the summer it was the worst I've ever seen in the absence of incidents such as strike or terminal facility damages. It is not only related to peak season activities. Our services have skipped a number of calls in Hong Kong - more than ever before," said Michael Britton, Asia-Pacific general manager at German shipping line Hamburg Süd.

A leading retailer in Hong Kong said: "Sometimes we have to wait for up to a week, and sometimes two weekly batches end up coming at the same time."

Delayed deliveries take a toll on local retailers and overseas customers. The norm is to wait for one to two days for goods to be discharged and ready for pick-up after a vessel's arrival, according to a fresh produce purchasing manager at a top Hong Kong retailer. A delay disrupts inventory management and can boost cold storage and distribution costs.

"When cargoes such as fruits and vegetables come late, quality deteriorates. Retailers have to maintain certain profit margins to survive, so in the end we have to pass on the extra costs to customers in one way or another," the retailer said.