APL said a labor slowdown at Sokhna Port, Egypt, underway since May 9, is impacting loading and discharging operations.
"The drop in productivity has reached some 70 percent and is causing a serious port congestion in Sokhna with vessels not able to load and discharge containers according to their planned schedule," the liner carrier said.
To clear some of the backlog, APL has temporarily suspended taking outbound bookings from Sokhna on May 23.
"We expect labor-management negotiations at the port to continue but it is unclear when normal operations will resume. If the labor action persists, congestion will further impede cargo flow at the port and customers will face supply chain disruptions. APL is developing contingency plans to manage congestion and disruptions at Sokhna," the carrier said.
Sokhna is located on the Gulf of Suez, the arm of the Red Sea that leads to the Suez Canal.
- Chris Dupin