Aaron Nusbaum, MBA’s Post

🚢 Port Klang Steps Up Amid Singapore's Maritime Logjam 🚢 Some updates on Port Klang's situation amid the surge in container and liner redirections from Singapore as the Republic Island grapples with significant berth congestion and delays, Port Klang, with its efficient strategies, is stepping in to ensure smooth operations I speak to Klang Port Authority's Captain K Subramaniam, Datuk Ruben Emir Gnanalingam of Westports Malaysia and Federation of Malaysian Freight Forwarders president Datuk Tony Chia. For context: Berthing delays and congestion are currently being experienced by ports worldwide. These issues are expected to persist until August, as numerous shipping companies have been compelled to modify their routes, such as using the Cape of Good Hope instead of the Suez Canal, as a result of the Red Sea issue. read here: https://lnkd.in/gGiiGFya #PortKlang #MaritimeLogistics #SupplyChain #Trade #Westports #Efficiency #DHLGlobalForwarding’s Ocean Freight Port #ASEAN

We need to address the press statement claiming that Port Klang is ready to handle the backlog, given that both terminals there have been operating at nearly 100% capacity since May 2024. How did LPK assess or from which data source did they determine our terminal's readiness to handle the Singapore backlog? While terminals use various indicators and criteria to estimate capacity, container hauliers often bear the blame when terminals are congested and deliveries are delayed. Although data might suggest that terminals can manage, recent experience shows that they are struggling with the volumes. Data might indicate capability, but the actual situation is quite different from predicted scenarios. LPK must not only focus on vessel congestion but also consider land-side movements, particularly domestic port traffic. It's true that this situation is part of a larger issue within the port logistics chain, and everything is interconnected, so it's unfair to solely blame the terminals. However, hauliers cannot bear all the blame either. We need authorities like LPK to understand the complexities and develop solutions or notices to educate the entire supply chain, especially shippers and consignees. Anwar Ibrahim Tengku Zafrul Aziz Association of Malaysian Hauliers Northport (Malaysia) Bhd Westports Malaysia

The logjam that’s been plaguing Singapore’s container port is bringing forward this year’s peak season for the shipping sector, spelling trouble for businesses in the city-state. The bunching up of container vessels outside one of the world’s busiest maritime trade hubs — caused by ships avoiding the Red Sea due to Houthi rebels’ attacks — means there’s more cargoes trapped in ports for longer. That’s pushing freight rates ever higher, with no immediate end to the congestion in sight.  It’s also possible for container lines to start using alternate ports like those in Malaysia, although they will be limited by the capacity constraints in Tanjung Pelepas and Klang. And given the shipping peak season has arrived earlier than usual this year, it will likely end sooner, according to Jefferies. That means freight rates should start to ease by September, the analysts said. 

The Red Sea crisis has disrupted ocean freight transportation, with major global ports like #Singapore experiencing berthing delays lasting up to seven days. The port, the second-largest in the world by total shipping tonnage, handles 39 million twenty-foot equivalent units (TEUs) in 2023. With 450,000 TEUs waiting, Singapore's Maritime and Port Authority is working to increase manpower and container handling capacity to prepare for #higher #vessel arrivals. #SupplyChain #GlobalTrade #Shipping #PortCongestion #Logistics

Singapore Port Expands to Meet Growing Demand As global trade intensifies, Singapore's Maritime and Port Authority reports significant increases in vessel arrivals and container handling in the early months of 2024. To keep pace with escalating demands, PSA Singapore has implemented several strategic enhancements to its capacity: Vessel Arrivals: Overall vessel arrival tonnage increased by 4.5% year-on-year, reaching 1.04 billion gross tonnage in the first four months. Container Growth: Container volumes rose by 8.8%, with a total of 13.36 million TEUs handled. Waiting Times: Despite most container vessels being berthed upon arrival, the average waiting time has reached 2-3 days due to increased traffic. Capacity Enhancement: Reactivation of older berths at Keppel Terminal has raised PSA’s weekly container handling capacity from 770,000 TEUs to 820,000 TEUs. New Berths: The opening of three new berths at Tuas Port is being expedited to further increase capacity. Freight Rates: The Drewry world composite index has surged 151% year-over-year, indicating a sharp rise in freight rates amid growing container demand. For detailed insights into how Singapore is adapting to these challenges, read the full article: https://lnkd.in/gz8hmy7u #shippingnews #singaporeport #oceafreight #aabiport

🔔 Port congestion disrupts almost half Asia-Europe sailings Congestion is increasing in Asian ports, with around half of Asia-Europe sailings towards the west failing to depart as scheduled. Ports like Singapore and Tanjung Pelepas in Malaysia are facing significant disruptions and resulting delays. Chinese ports such as Shanghai and Qingdao are experiencing extended waiting times for ships to berth, with vessels waiting up to five days in Shanghai. To alleviate queues, Singapore has reopened the Keppel Terminal temporarily, but congestion persists, with Port Klang in Malaysia also affected. Liner operators do not anticipate immediate relief from congestion, anticipating high freight rates to persist until Q3. The situation is compounded by high liner capacity usage and reduced availability due to delays and blank sailings. Despite the launch of new services, the scheduled Asia-Europe capacity for June is expected to be 3% lower year-on-year. #shipping #containershipping #news #congestion https://lnkd.in/dAPFfSPh

Congestion at Singapore's port has reached its highest level since the COVID-19 pandemic, largely due to prolonged vessel rerouting to avoid Red Sea attacks. This situation has severely disrupted global ocean shipping, causing bottlenecks in other Asian and European ports as well. Shippers are facing surging rates, port backups, and shortages of empty containers, especially as they prepare for peak season. Global port congestion has hit an 18-month high, with 60% of ships waiting at anchor located in Asia. Unlike the pandemic period, it is not a surge in consumer buying but missed sailing schedules and fewer port calls causing the delays, as ships take longer routes around Africa to avoid the Red Sea. This results in larger-than-normal cargo offloads at major transhipment hubs like Singapore. Drewry predicts that while congestion at key transshipment ports will continue to be significant, there should be some relief as carriers expand capacity and normalize schedules. Additionally, Singapore's Maritime and Port Authority (MPA) has announced that PSA, the port operator, has reopened older facilities at Keppel Terminal and plans to increase capacity at Tuas Port to reduce prolonged delays. #PortCongestion #Logistics #SupplyChain https://lnkd.in/gWi6eBvF

Singapore Container Ship Logjam Spills Over to Malaysian Port Container ship congestion in Singapore, one of Asia’s busiest ports, is spreading to neighboring Malaysia, snarling supply chains and causing delays in the movement of consumer goods. Around 20 container vessels are anchored in a cluster off Port Klang, on the western coast of Malaysia near Kuala Lumpur. Both Klang and Singapore sit on the Straits of Malacca, a vital waterway that links Europe and the Middle East to East Asia. The maritime logjam is being caused by ships avoiding the Suez Canal and Red Sea due to attacks by Houthi rebels, who support Hamas in the war with Israel. Many vessels heading toward Asia are opting to travel around the southern tip of Africa, meaning they’re not able to refuel or unload cargo in the Middle East. Port Klang is an important terminal, given its proximity to Kuala Lumpur, but a queue of this magnitude is rare, with ship-tracking images showing many vessels unloading at its berths. Slots at Singapore and Tanjong Pelepas, a Malaysian port just across the border from the city-state, also appear to be full, but there are fewer ships waiting off those terminals. Congestion at the shipping terminals could last through August, analysts have said. Container vessel rates have surged as a result of the delays and rerouting. Source: LFS Group Newsletter

Singapore Container Ship Logjam Spills Over to Malaysian Port Container ship congestion in Singapore, one of Asia’s busiest ports, is spreading to neighboring Malaysia, snarling supply chains and causing delays in the movement of consumer goods. Around 20 container vessels are anchored in a cluster off Port Klang, on the western coast of Malaysia near Kuala Lumpur. Both Klang and Singapore sit on the Straits of Malacca, a vital waterway that links Europe and the Middle East to East Asia. The maritime logjam is being caused by ships avoiding the Suez Canal and Red Sea due to attacks by Houthi rebels, who support Hamas in the war with Israel. Many vessels heading toward Asia are opting to travel around the southern tip of Africa, meaning they’re not able to refuel or unload cargo in the Middle East. Port Klang is an important terminal, given its proximity to Kuala Lumpur, but a queue of this magnitude is rare, with ship-tracking images showing many vessels unloading at its berths. Slots at Singapore and Tanjong Pelepas, a Malaysian port just across the border from the city-state, also appear to be full, but there are fewer ships waiting off those terminals. Congestion at the shipping terminals could last through August, analysts have said. Container vessel rates have surged as a result of the delays and rerouting. Source: LFS Group Newsletter

Finally! - Singapore’s Transport Minister, Chee Hong Tat, addressed parliament, acknowledging severe delays in container ship arrivals at the port. He revealed that 90% of ships were arriving late due to ongoing disruptions from the Red Sea crisis, significantly impacting operations at the world’s second-busiest port. Chee proposed optimizing vessel schedules with liner operators to mitigate delays, emphasizing the implementation of a just-in-time system for ships awaiting berthing. Despite ships staying longer in Singapore to handle cargo, causing increased waiting times, anchorage congestion remains minimal. With container traffic soaring and vessels arriving within narrow time frames, the port faces heightened complexity in handling operations. To address these challenges, Singapore plans to expand capacity, accelerating the opening of new berths at Tuas and reactivating downtown terminals. The measures aim to alleviate congestion and maintain Singapore’s pivotal role as the world’s largest bunkering and busiest container transhipment hub. #SingaporePortDelays #ShippingCrisis #JustInTimeOperations #PortCapacityExpansion #TuasMegaport #ContainerTranshipmentHub #BunkeringCapital