The congestion plaguing Asia-Europe shipping routes is creating significant disruptions in the market, with nearly half of westbound sailings experiencing delays. According to Linerlytica’s report, congestion has particularly intensified in Asian ports like Singapore and Tanjung Pelepas, Malaysia.
While Singapore’s congestion has somewhat alleviated, Port Klang and Tanjung Pelepas are now facing significant strain. Chinese ports, notably Shanghai and Qingdao, are also experiencing prolonged delays, with ships waiting up to five days to berth, exacerbating the situation.
The impact is evident in vessel-tracking data, with numerous container ships waiting in ports like Shanghai and Singapore. Some operators, such as CMA CGM, are even skipping calls at Singapore due to bottlenecks. Despite efforts to address the issue, including reopening shuttered terminals, congestion remains a pressing concern.
The congestion is not limited to specific ports, as evidenced by the high number of container ships in Port Klang and ongoing congestion across southeast and northeast Asian ports. Taiwanese liner operators anticipate no immediate relief from the congestion, expecting high freight rates to persist into the third quarter.
Various factors contribute to the congestion, including high liner capacity utilization and wage negotiations among US East Coast port workers, which could prompt shippers to expedite shipments to avoid potential industrial action in September.
Looking ahead, Linerlytica projects a 3% year-on-year reduction in scheduled Asia-Europe capacity for June, despite the introduction of new services by Hapag-Lloyd and Ellerman City Liners. Forced blankings further reduce available capacity, exacerbating the challenges posed by ongoing congestion.
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RAWGLOBAL International Freight Services
