Impact of Red Sea Crisis on Vessel Bunching in 2024

64

  • Vessel bunching refers to multiple vessels departing in the same week on the same service, beyond scheduled weekly services.
  • It is a key indicator of port pressure and congestion risks.
  • Recent crises, like the Red Sea crisis, have intensified vessel bunching post-pandemic.

Vessel bunching occurs when multiple vessels from the same service depart in the same week, beyond the number of weekly scheduled services. Causes include vessel delays, vessel shortages, and the use of extra-loaders for high demand or backlog, reports Sea Intelligence.

Measuring Vessel Bunching Over Time

To analyze trends, vessel bunching is calculated as a rolling 10-week average. On the Asia-North Europe route, vessel bunching was low before the pandemic, spiked during the pandemic, and normalized towards the end of 2023.

The 2024 Red Sea crisis has caused vessel bunching to surge again.

Increased Port Congestion Risk

Higher vessel bunching creates heavy pressure on ports and terminals.

When two vessels depart in one week and none in the next, it leads to an extreme workload in one week, causing port congestion risks.

Broader Impact on Logistics

Vessel bunching also strains truck, rail, and barge capacity due to uneven shipping schedules.

The increase in vessel bunching serves as a proxy for predicting port congestion issues, with no signs of relief at present.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Sea Intelligence