New Vessel Capacity Offers Relief, But Supply Chain Disruptions Set To Persist

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Port congestion, worsened by Red Sea diversions and blank sailings, is beginning to ease as new vessel capacity comes online, according to Drewry’s Ports & Terminal Insight editor, Eleanor Hadland, in a report from The Loadstar. However, Hadland warns that supply chain disruptions will remain a constant challenge despite these improvements.

Impact of Red Sea Diversions and Blank Sailings

The recent surge in congestion is largely attributed to transhipment cargo delays exacerbated by the Red Sea crisis. Blank sailings have further disrupted the efficiency of weekly schedules, leading to significant backlogs at terminal yards. Hadland points out that congestion is especially severe in transhipment hubs, where missed connections between mainline and feeder services cause rapid cargo build-ups.

Relief from New Vessel Capacity

New vessel deliveries expected this year and next are seen as a potential remedy for the congestion issues. Hadland suggests that once these vessels are deployed, the gaps in mainline schedules—caused by the longer Cape of Good Hope route—will diminish, leading to shorter dwell times and reduced yard congestion. This expansion in capacity is anticipated to bring much-needed relief to strained ports.

Persistent Risks and Future Disruptions

Despite the anticipated easing of congestion, Hadland cautions that the global supply chain remains vulnerable to a variety of disruptions. Potential strikes in US East and Gulf Coast ports, similar risks in Europe, and climate-related challenges such as floods and severe weather events continue to pose significant threats. She stresses that “there’s always going to be something,” underscoring the need for ongoing vigilance in managing these risks.

While the new vessel capacity offers a glimmer of hope for easing current congestion issues, the maritime industry must prepare for an array of potential disruptions that could impact global supply chains. The complexity of these challenges suggests that while some relief is on the horizon, the sector will need to remain adaptable and resilient in the face of ongoing uncertainties.

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Source: THE LOADSTAR