Shipping Service Tensions in Asia

Global shipping congestion is at its highest level in 18 months, with some Asian ports particularly affected, underscoring the lingering impact of disruptions to shipping in the Red Sea caused by Houthi attacks there.

According to statistics from the shipping market research firm Linerlytica, 60% of the ships waiting to dock are in the Asian region. Of which, Singapore's container port ( the world's second largest port) is in the worst congestion since the Covid-19 pandemic. This congestion hotspot has been causing a domino effect on a series of seaports in Asian countries. Not only has the congestion prevented nearly half of the container ships heading West Asia - Europe and Asia - Northern Europe from departing on time, but the congestion has also caused foreign shipping lines to continuously increase surcharges to compensate for the cost of waiting to dock.

The Maritime and Port Authority of Singapore (MPA) said that the average waiting time for container ships to dock is now two to three days, compared to less than a day normally. According to data from Linerlytica and real-time shipping data provider PortCast, the waiting time can be up to a week. Due to the prolonged congestion, some ships have been forced to abandon their calls in Singapore and switch to ports in neighboring countries, putting even more pressure on port managers in countries such as Malaysia and China. Although port authorities in these countries are also coming up with contingency plans, the waiting situation cannot be resolved "overnight".

The number of container ships waiting to call at Malaysia's Port Klang and Tanjung Pelepas has increased, and waiting times at ports in China have also increased. The busiest ports are Shanghai and Qingdao, with long queues of ships waiting to call. Similar congestion is also occurring at ports in the Mediterranean. Accordingly, Danish shipping company Maersk said it would skip two sailings from China and South Korea to ports in Europe from early July.

Meanwhile, international freight companies say the annual peak shipping season has arrived earlier than expected, exacerbating the congestion. According to shipping service provider Dimerco, the peak season usually starts in June, but this year it started in May. Freightos, a global booking and payment platform for international freight, said that imports of warehoused goods from Asia to Europe are showing signs of entering the peak season, pushing freight rates to their highest levels so far this year. In fact, freight rates have skyrocketed since May, after a period of stability in April. The situation is so tense that major shipping lines are now only quoting weekly rates, and rates can even change daily, instead of quoting from 15 days to 1 month as before.

The Red Sea plays an important role in the global trade system, accounting for nearly a third of the total container traffic and about 12% of the world's merchandise trade. Analysts warn that if the security situation in the Red Sea is not controlled, it will have a major impact on the global supply chain. Escalating shipping costs will lead to the risk of price increases for consumers in the context of many countries trying to control inflation.

SOUTH

Source: https://www.sggp.org.vn/cang-thang-dich-vu-van-tai-bien-o-chau-a-post746877.html