"Big ship jam"! During the peak period, more than 480,000 containers were waiting, and freight prices soared! Shipping delays! this important port
On Monday local time, global shipping giant Maersk Group said there were signs of further congestion at ports around the world, especially in Asia and the Middle East, as container market demand is strong and chaos caused by the Red Sea crisis continues. Singapore is one of the busiest ports in the world and a major transit hub in Asia. The recent congestion at the Singapore port has attracted industry attention.
Singapore is the world's second largest container port. The recent severe congestion at the Singapore port has attracted industry attention. According to a recent report by Asian container consulting firm Linerlytica, container ships currently may have to wait up to about seven days to obtain a berth in Singapore, while under normal circumstances ships only need to wait up to half a day.
The latest data shows that the number of containers waiting to be berthed in Singapore surged in May. During the peak period in late May, the highest number of containers waiting to be berthed reached 480,600 20-foot standard containers.
The Maritime and Port Authority of Singapore recently stated in a report responding to the media that there are two main reasons for congestion at Singapore ports: shipping delays and a surge in container throughput.
First, the Red Sea crisis caused ships to detour around the Cape of Good Hope in Africa, disrupting the planning of major ports around the world. Many ships were unable to arrive as planned. When unscheduled ships arrived at the port, it resulted in queues, resulting in a "ship aggregation" effect. .
Secondly, the Maritime and Port Authority of Singapore said there has been a significant increase in ships arriving in Singapore so far this year. In the first four months of this year, Singapore handled a total of 13.36 million TEUs, a year-on-year increase of 8.8%.
The Maritime and Port Authority of Singapore also stated that the increase in container handling volume was partly due to the fact that some shipping companies gave up subsequent voyages in order to catch up with the next sailing schedule, and concentrated the cargo from Southeast Asian countries in Singapore, and the ships docked at the port. The loading and unloading time is also lengthened.
To ease port congestion, port operator PSA said it had reactivated old berths and docks at Singapore's Keppel Terminal that had been decommissioned and also increased manpower. Following the new measures, PSA said the number of containers it can handle per week will increase from 770,000 TEU to 820,000.
The latest report from S&P Global shows that congestion at major Asian ports, especially Singapore, has also contributed to rising container shipping prices.
Data as of May 30 show that the current freight rate from Asia to Europe has reached US$6,200 per 40-foot container, while the freight rate from Asia to the West Coast of North America has also climbed to US$6,100.
The global supply chain now faces several major uncertainties, including the geopolitical crisis in the Red Sea, frequent extreme weather around the world that will also cause shipping delays, and there is also the risk of strikes. S&P Global reported that Canadian customs and border workers may strike in June. In addition, workers at U.S. East Coast and Gulf of Mexico ports may also be on strike after their contracts expire this fall.
