Current Situation The ongoing crisis in the Red Sea has led to abrupt changes in carrier service patterns and vessel re-routings. This has resulted in severe congestion at key transhipment ports, causing increased yard congestion and a decline in port productivity. Singapore, among other major transhipment hubs, is experiencing a backlog of shipping containers comparable to peak levels seen during the pandemic. Source: Drewry
Impact of Red Sea Reroutings on Transhipment Hubs
Key Findings Increased Throughput: Despite an 8% year-over-year increase in throughput at Singapore port in the first five months of 2024, port productivity has declined due to a 22% increase in average parcel sizes. Handling Time: Handling time for 1,000 twenty-foot equivalent units (TEU) has risen by 10% to 0.32 days. This translates to a 41% increase in exchange times for Ultra Large Container Vessels, from 1.1 days in January to 1.7 days in May. Congestion Factors: The current congestion is directly affecting transhipment hubs due to drastic changes in individual exchanges, unlike the pandemic-era congestion that impacted gateway ports due to high cargo demand and inland transport issues.
Port Delay by Country *These are approximate delay times
Challenges
Blank Sailings: A high number of blank sailings.
Congested Yards: Overcrowded yard spaces.
Off-Window Arrivals: Vessels arriving outside their scheduled windows.
Prioritization Issues: Mainline vessels are being prioritized over feeder vessels, disrupting mainline-feeder services. It is predicted that congestion at major transhipment ports will continue to be a significant issue. However, some relief is expected as carriers introduce additional capacity and restore disrupted schedules. Freight Systems is closely monitoring the situation and actively working to mitigate any delays. We are committed to keeping you informed and providing the best possible service during these challenging times. Rest assured; we will promptly share any new information with you. Please feel free to reach out to our customer service or sales team if you need any further assistance related to this. Please write to us at info@freightsystems.com.
"At Freight Systems, we are committed to keeping our clients informed about any developments that may affect our services. We would like to draw your attention to recent developments that are significantly impacting transhipment ports globally, with Singapore being particularly affected."
Regards Team Freight Systems