The congestion in Singapore has not eased and is expected to stay high well into August and September.
The demand for container shipping hit an all time record high in May of this year with 15.9 million twenty foot container shipped globally. In comparison 15.7 million containers were shipped in May 2021 (at the height of the COVID peak).
Data also revealed that 74 million containers were shipped in the first five months of 2024, surpassing the previous record set during the same period in 2021 by 150,000 containers.
Analysts are advising that the increase has been largely driven by record-breaking exports from China, as concerns grow over the upcoming implementation of US tariffs on Chinese goods later in 2024. Many exporters and importers have bought their schedules forward to allow for these delays in the supply chain.
Major trading routes have also been disrupted, with the Houthis continuing to target commercial vessels in the Red Sea.
Our notice on June 4th informed you of freight rate increases. While these rates continue to rise, the primary risk to your company now lies in the prolonged delays currently occurring in Singapore. Shipping lines are warning us that this situation is expected to worsen before it improves. As the number of containers awaiting transshipment increases, shipping lines are working on a first-in, first-out system. This means that some containers will see the possibility of a one month stay in Singapore waiting for a vessel to Fremantle.
Bookings from all ports through Singapore will be directly impacted as shipping lines attempt to minimise the disruption and idle times.
What does this mean to you? Shipments will be delayed, unfortunately due to Fremantle’s geographic location (and shipping lines routing) there is little that can be done to avoid transhipment. The release of bookings will also take longer as we seek the best available options for your cargo.
What can you do? Allow for these delays by bringing any orders you have forward.
Given the current unpredictable conditions, all provided departure and arrival times for shipments will be estimates only.
We will continue to keep you updated on the situation. Our relevant teams will notify you about the movements of your individual shipments.
