Ports across South East Asia have not seen such pressure from high container volumes since the pandemic as nervous shippers move forward the peak season.
According to research firm Linerlytica, congestion in several of the world’s major ports is the worst in 18 months, with 60% of container ships waiting at anchor in Asia, Reuters reports. In mid-June, container ships with a total capacity of over 2.4 million tons were waiting to dock at ports.
The reason for the growing bottlenecks and delays is the threat of armed attacks on merchant ships by the Yemeni Houthi militia in the Red Sea. Due to the attacks, shipping companies are forced to sail south of Africa instead of taking the traditional shortcut through the Suez Canal. This results in longer sailing times and means that ships call at fewer ports to save time, causing serious congestion.
In the key Asian port of Singapore, bottlenecks are currently on par with those experienced during the coronavirus pandemic, which caused severe delays in global supply chains. According to Drewry, container shipping lines unloaded 22% more cargo at the Port of Singapore in May compared to January. The bottlenecks are exacerbated by shippers starting the peak season earlier this year than usual to ensure they get their goods on time.
”The peak season, which traditionally starts in June, was advanced by a full month, causing ocean freight rates to soar,” says shipper Dimerco, according to Reuters.
