Supply disruption? “Unbelievable” situation in the port of Leixões and “unacceptable” in Madeira

Dispatch and entry of cargo into Leixões is blocked. Government of Madeira is very concerned about the supply chain.

The warning had already been given before Christmas, last Tuesday: the new computer system is blocking a large part of customs in Portugal. There is containers held in ports.

The new mechanism is called the Integrated System of Means of Transport and Goods; is the new Portuguese customs system, developed by the Tax and Customs Authority.

The Order of Official Dispatchers warned that there are “declarative errors inherent in adapting to new systems” and “technical failures which have prevented the normal processing of processes”.

The Order called for “the adoption of transitional mechanisms that allow the release of the affected containers, naturally safeguarding the interests of all entities and without prejudice to subsequent administrative regularization as soon as the system is fully functional”, reads a statement sent to the Secretary of State for Fiscal Affairs.

Port of Leixões blocks Madeira

Also on Tuesday, the Association of Freight Forwarders of Portugal warned of a “logistical chaos” at the port of Leixõeswhere there is hundreds of containers piled up.

This Thursday, Christmas Day, the Government of Madeira asked the Prime Minister to find a urgent solution to unblock the dispatch and entry of cargo onto ships in the port of Leixões, warning that a rupture in the supply chain could be at stake.

In a note sent to newsrooms, the Regional Secretariat for the Economy indicates that the guardianship and the president of the Regional Government (PSD/CDS-PP), Miguel Albuquerque, emphasize that “There may be a disruption in the supply chain to the Portuguese archipelagos at this critical time of year-end“.

Quoted in the statement, Albuquerque states that “the unbelievable situation in the Port of Leixões is causing serious disruptions in the region’s supply chains”, pointing out “a extremely serious and unacceptable situation never experienced in Madeira“.

The head of the regional executive says it is “necessary for the national government to intervene without delay, as this situation is creating a very serious problem for the population”.

In the message sent to Luís Montenegro, the Madeiran government officials warn of the negative impact of the entry into force of the new computer system that is blocking the customs clearance of goods and stress that “if the situation is not resolved by the 26th (today) in the morning, there will be serious problems in transporting goods to Madeira and the Azores“, reads the same statement.

The Secretary of Economy, José Manuel Rodrigues, requests that “priority to ships that dock in Leixões and Lisbon to load containers for the regions”, so that companies and families are not penalized during this festive season.

“Otherwise the end of year in Madeira could be harmed due to the absence of the merchandise that was scheduled to arrive next week”, is reinforced in the statement.

External decision

The Tax Authority indicated that this new system is a decision of the European Commission; Portugal must fully implement the system by next Wednesday.

This new method began to be tested last year, in phases, but there is constraints in the port of Leixões, essentially due to the aforementioned “declarative errors”.

The Tax Authority has already activated a continuity plan to normalize activity in Leixões.