- Singapore has been hit by the worst congestion due to a rerouting of maritime traffic in the Red Sea to avoid Houthi attacks.
- Ports on the US West Coast have also experienced bouts of congestion over recent years.
- Port congestion has a negative ripple effect across the entire supply chain.
Ship Technology discusses about exploring the current congestion problems ports are facing – and the solutions being considered to overcome them.
Port congestion in major ports
Port congestion has continued to make headlines this year, with Asian ports and key transhipment hubs, including Singapore and Colombo, reaching critical levels.
Singapore has been hit by the worst congestion since the pandemic due to a rerouting of maritime traffic in the Red Sea to avoid Houthi attacks off the coast of Yemen. Colombo has also seen an unusual surge in volume, exacerbated by vessel diversions linked to the Red Sea disruptions, with “some ships languishing for over five days before securing a berth”, according to Anne-Sophie Fribourg, VP of digital freight forwarding company ZenCargo.
These issues have added pressure to main trade lanes and are impacting secondary ports in countries such as India and Bangladesh, but there are other crucial stretches of water that could further impact congestion in the region.
Frank Kenny, a former Gartner analyst and current director of industry strategy at tech company Cleo, points to the fact that the Strait of Malacca is increasingly susceptible to military conflict, potential piracy, and the effects of climate change.
“The narrow strait, located between East Asia, the Middle East, and Europe, is a critical chokepoint that accounts for about 30% of global trade, including roughly 80% of China’s energy imports,” he notes, adding that “a disruption here would be catastrophic for the global supply chain.”
Port congestion issues aren’t just restricted to Asia. Ports on the US West Coast have also experienced bouts of congestion over recent years. This is cause for concern when 40% of containers from Asia come through California’s San Pedro Bay complex, which handles more containers per ship call than any other port complex in the world.
Cause of port congestion
According to Drewry Maritime Research’s July 2024 Ports & Terminals Insight, pre-berth waiting times globally are much lower than the Covid-19-related peak in 2021 and 2022.
Still, they are high compared with pre-pandemic levels and have been steadily growing this year. It reports waiting times rising 14% month on month in June; 42% higher than at the beginning of the year.
Clearly, one of the biggest causes of the current congestion is rerouting due to attacks in the Red Sea, but other issues have also played a part.
The underinvestment in labour and infrastructure is now making itself seen clearly.
Climate change has made the weather extreme and unpredictable, causing logistical challenges. For example, dropping water levels in the Panama Canal this year, caused by a drought, led the authority to bring in restrictions to ship crossings, forcing re-routes.
Infrastructure is also having an impact, with insufficient on-shore warehousing and struggling distribution centres, as well as a shortage of workers; who in recent years have had to deal with constant change.
“The underinvestment in labour and infrastructure is now making itself seen clearly, from the looming threat of an International Longshoremen’s Association (ILA) strike on the US East Coast to space issues in transhipment ports that can spread quickly,” says Fribourg.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Ship Technology
