Fluctuating service configurations have led to congestion building at some ports. A combination of unexpected events and higher volumes is increasing pressure on infrastructure and inland operations, whose ability to cope with changeable volumes is causing backlogs and congestion in certain regions. The ongoing Red Sea crisis has prompted a major rerouting of ships, ultimately weighing down on ports handling the Asia-Europe trade.
The Red Sea crisis is challenging Asian ports, with congestion echoing the pandemic. This congestion is seen in Asia, the Middle East, and spreading to Europe. Market participants have reported congestion at China-based ports, Singapore, Port Klang, Jebel Ali, and Colombo. Sources reported a two-to-three day delay in berthing at Port Klang and Singapore and a five-to-six day delay at Jebel Ali. During normal circumstances, these ports typically see berthing on arrival or delays of up to only half a day.
It is likely to come as little surprise to container supply chain stakeholders that the largest ports are most prone to delays, given the complexity that greater numbers of ships pose. Shanghai, the world’s largest container port, hosts 186 weekly services but was ranked 26th among best-performing ports. Singapore, with 130 weekly services, was in 64th place. The bottlenecks at Singapore are due to various factors, from the diversions caused by unrest in the Red Sea to Chinese exporters scrambling to ship goods ahead of trade curbs, according to observers.
Earlier this month, the United States announced that it will raise tariffs on US$18 billion worth of imports from China, targeting strategic sectors such as electric vehicles (EVs), batteries, steel, and critical minerals.
