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🚢 Navigating New Waters: Red Sea Rerouting Sparks Asian Port Congestion 🚢 The shifting geopolitical landscape has led to significant changes in global shipping routes. Due to tensions and logistical challenges, many shipping companies are now diverting their routes via the Cape of Good Hope instead of the Red Sea. This change has caused increased congestion at key Asian ports like Singapore and Port Klang. Eleanor Hadland from Drewry Shipping Consultants notes, "We're seeing some congestion hotspots emerging as a result of these diversions. The off-window arrivals and larger cargo exchanges are straining port infrastructures." It's a dynamic time for the shipping industry, as these adjustments aim to maintain efficiency amidst evolving global circumstances. 📈 How do you think the industry will adapt to these challenges in the long term? #ShippingNews #Logistics #GlobalTrade https://lnkd.in/dAfiCdKn

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

The Asian ports are experiencing some worrying congestion issues as their typical half-a-day wait time is now up to over 7 days. This article emphasizes that it may just be the beginning. #congestion #Asia #Singapore #Ports #PortXLogistics

It’s the shortest day of the year (and it’s a Friday!) Happy winter solstice ❄ Major transshipment ports globally are still experiencing severe congestion due to the Red Sea crisis, with Singapore still the prime example. According to a new report from maritime consultancy firm Drewry, the escalating crisis is driven by sudden changes in carrier service patterns and vessel reroutings, resulting in increased yard congestion and declining port productivity. Singapore, along with other transshipment ports, are now dealing with a buildup of shipping containers that rivals the peak levels observed during the pandemic surge. Despite an 8% year-over-year increase in throughput at Singapore port in the first five months of the year, port productivity has declined due to a 22% increase in the vessels exchange. The report shows that the handling time for 1,000 twenty-foot containers has increased by 10% to 0.32 days. This has led to a 41% rise in exchange times for Ultra Large Container Vessels, from 1.1 days in January to 1.7 days in May. What does this all mean?  The vessels that are calling Singapore are carrying a lot more containers, so it’s taking a lot more time to unload and load them. Complicating the situation is a number of blank sailings, off-window arrivals and the prioritisation of mainline vessels operating on the headhaul trades (rather than the smaller feeders that go back and forth within Asia). Agents in China have confirmed that securing space between China and Fremantle has been more challenging compared to routes between China and the East Coast (due to no transhipment on this routing). A few shipping lines have even suspended bookings to Fremantle as their number of containers in Singapore build up to unmanageable levels. It is not unusual for some containers to be in Singapore for 3 – 4 weeks. Some shipping lines are also having equipment issues. 40’HC containers are scarce out of some of the main ports – namely Qingdao /Ningbo /Shanghai /Tianjin and Shenzhen (this is differing from line to line). The congestion in Singapore is not anticipated to resolve soon, as many vessels from China and SE Asia are already booked through the end of July. (The chart shows the average waiting times for vessels in Singapore on the left – the right shows the average exchange along with the overall port productivity)

The congestion that’s been plaguing Singapore’s port is showing signs of easing, with container ship arrivals falling to the lowest in more than a year last month, noted by the Singapore trade authority. Vessel arrivals, calculated by total shipping tonnage, were around 241 million tons in June, 10% less than the previous month and the lowest since February 2023, according to the figures from the Maritime and Port Authority of Singapore. Container throughput at the Asian shipping hub also dropped 5% in June from the month before to 3.4 million twenty-foot equivalent units, adding to signs the maritime logjam, caused by the rerouting of ships away from the Red Sea due to Houthi attacks, was beginning to ease. Average wait times at the port are also getting shorter, according to The Business Times, as measures including the reactivation of some berths and yard space were implemented. All in all, container volumes processed in Singapore were still up 6.4% in the first-half of 2024 as compared to the same period last year, according to MPA data. June figures were down in part due to some vessel owners opting to unload or refuel at Malaysian ports to avoid delays. The attacks in the Red Sea are ongoing, meaning ships are still sailing around southern Africa, thereby not stopping at Middle Eastern ports. See below extract of Singapore vessel arrivals on a downward trend: #freightforwarding #customsbrokers #globallogistics

The Red Sea crisis has led to significant disruptions in global ocean freight, with the Port of Singapore facing severe congestion. Ships are now experiencing delays of up to 7 days due to off-schedule arrivals and the vessel-bunching effect, according to Linerlytica. Under normal conditions, a vessel waits only half a day to berth. Key points: 🔹 Capacity Issues: Singapore currently has 450,000 TEUs awaiting entry or exit, surpassing pandemic levels. April saw 639 ship calls, but from May 1 to May 23, the port received 999 ships. 🔹 Global Impact: Maersk is introducing blank sailings due to severe congestion in Mediterranean and Asian ports. The congestion has impacted global schedules, with on-time arrivals dropping to 52% in April, down 12 percentage points from last year. 🔹 Trade Lane Crisis: The China-India trade lane has been particularly affected, with Alebrand from DHL Global Forwarding noting that global container capacity caught up in congestion has hit 7%, compared to a normal 2-4%. 🔹 Solutions & Expansion: The Maritime and Port Authority (MPA) of Singapore and PSA have added more manpower and capacity, reopening decanted berths at Keppel Terminal and increasing weekly capacity to 820,000 TEUs. Three new berths at Tuas Port will be operational later this year, supplementing the existing eight. 🚢 Road Ahead: To alleviate congestion, carriers are adjusting schedules and adding blank sailings. The challenge remains in managing off-schedule arrivals and balancing global trade flows amid shifting schedules. The acceleration of port expansion projects and strategic partnerships will be crucial for Singapore to maintain its role as a global transshipment hub. China-India trade lane will continue to have higher freight rates and lack of space for containerized cargo. #GlobalTrade #OceanFreight #PortCongestion #SupplyChainCrisis #SingaporePort #ShippingIndustry

Quickly highlights in Asia x Latam Ocean Market: 1- Congestion in Lazaro Cardenas and Manzanillo is getting worse everyday and will cause delays not only to MX cargoes, but also for Central America that use MX ports as hub. 2- Space situation to WCSA is improving due lower demand in past 3 weeks and also because high number of new services added in market (more than 4). 3- Carriers added PSS in their annual contracts. 4- ECSA keep suffering with high port congestions in main BR ports. 5- Container inventory situation is little better in main Chinese ports. 6- Carriers that use Singapore as Hub port is still suffering with cargo delays. 7- FAK rates finally starts to drop after more than 4 months of intensitive clibimg. 8- New services will connect Shanghai/Busan to Lazaro Cardenas in middle of Aug under bi-weekly basis. 9- New MSC service connecting main Asia Ports to main BR ports starting in end of July. 10- Everything will change next year with new joint configurations that should put carriers against each other (would be shipper moment?)

🚢Current Shipping Challenges: Echoes of Past Congestion Affect Asia and the Middle East 🚢 The ongoing Red Sea crisis is causing significant disruptions in Asian ports, with congestion reminiscent of the pandemic era. Analysts are warning that these backlogs could spread to European ports due to continuous changes in shipping routes, and container diversions from the Red Sea, and Suez Canal, compounded by unexpected weather events and major holidays. Impact Highlights: -Ports like Jebel Ali are experiencing increased dwell times, pushing from 1.5 days to 2.5 days, impacting trucking and storage capacities. -Major fluctuations in vessel calls and cargo capacity are challenging port operations, especially in regions like Singapore and Port Klang. -Asian routes to Europe have seen an increase in cargo capacity, but the strategic repositioning of vessels is causing logistical challenges, potentially setting the stage for congestion to reach European ports. At Aabiport, we keep our clients informed about critical developments, helping them navigate through these complex scenarios with updated strategies and solutions. For those involved in international trade, understanding these dynamics is crucial for planning and execution. 🔗 For more detailed insights and to understand how these disruptions might affect your logistics, read the full article here - https://shorturl.at/kpMPX #ShippingNews #oceanfreight #FreightForwarding #Aabiport #GlobalTrade

🚢 Update on Singapore Port Congestion 📊 Our port insights tool reveals two key trends: Increased Waiting Time: Vessels at anchorage are experiencing longer wait times, with the average number of days each vessel waits before reaching the berth increasing. The white line indicates the median. The trend suggests that this may continue for several more weeks or months. Higher Volume of Vessels: The number of daily new vessels entering the anchorage zone is on the rise. With these numbers increasing, there's a growing risk that needs to be monitored and assessed. Do you have critical parts in these shipments? Our Ocean ETA tool provides the visibility you need to monitor and navigate your containers through congested ports, offering the information necessary to make informed decisions. Book a demo today ➡️ https://hubs.la/Q02zGFTJ0 #supplychain #oceanvisibility #portcongestion #singapore #shipping #alerts

🚢🔥 Severe congestion grips global shipping hubs, with Singapore at the forefront of the bottleneck. PSA Singapore's proactive measures aim to tackle the mounting challenges, but the ripple effects are felt across the industry. Discover how disruptions, from port congestion to vessel bunching, are reshaping maritime trade dynamics. With freight rates soaring and carriers pushing for higher prices, the road ahead remains uncertain for shippers. Dive into the complexities of the current maritime landscape with insights from industry experts. Reach out to Africa's Leading Independent Neutral Consolidator, Contra Consolidations, to assist in keeping your business's cargo moving. Read more here: https://lnkd.in/efTmu7j5 #Contra #ContraConsolidations #LCL #Groupage #FarEast #ShippingCrisis #PortCongestion #SingaporePorts #GlobalTrade 🌐📦