The storm responsible for the tragic Valencia floods could send significant ripple effects through global supply chains ahead of the peak retail season.
New analysis from supply chain experts project44 showed the disruption caused by heavy rains through eastern Spain, particularly in the key ports of Valencia, Barcelona and Algeciras, was set to impact trade across Europe ahead of the festive period.
The ports have all faced operational interruptions and schedule changes, with delays of shipments leaving Spain expected, project44 data showed.
The deadly storm triggered extreme floods and several danger alerts last week, ravaging the city of Valencia and neighbouring towns.
Dana also brought extreme rainfall and high winds to the regions of Catalonia and Andalusia. There is currently a red alert in Barcelona warning of more rain on the way.
And as ports struggle to resume operations, there is a potential impact to inventory for the upcoming holiday season, experts warned.
“Ports have temporarily halted operations to assess damage and ensure safety, delaying container processing for imports, exports, and transshipments,” according to project44 analysis.
“In addition, road closures and flooded routes are obstructing truckload and inland transportation, affecting cargo movement to and from these ports.
“The timing of these disruptions, coinciding with the peak shipping season, poses added challenges for manufacturers and retailers reliant on timely goods movement across Europe.”
Barcelona has seen the highest spike in import dwell time so far, with multiple days showing no processing of import containers. This issue could become worse as port operations remain limited, the supply chain analyst said.
“This set of containers is likely to include inventory intended for the holiday season, making it essential for retailers and ports to prioritise urgent containers to ensure they reach shelves in time.”
The Grocer reported last week that fresh produce growers anticipated “a degree of shortages of fresh produce leaving Spain for the next month” after thousands of hectares of fruit & vegetable production were left submerged by extreme flash flooding.
With Spain supplying 25% of Britain’s fruit imports and 8% of its vegetable imports, this could see UK supermarkets struggle with availability of some lines in the coming weeks, industry figures warned.
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