Reports of port congestion increasing worldwide are coming in thick and fast.
Singapore is currently experiencing extended waiting times for vessel berthing, ranging from 5 to 7 days, representing a significant rise from the typical 0.5 to 1 days. PSA (Port of Singapore Authority) are reactivating older berths and yards, along with increasing manpower in an aim to alleviate delays and container build up.
This is impacting both inbound freight to Australia and outbound freight leaving our country.
Main ports in China have also seen an uptick in the number of days it is taking for vessels to berth, this of course is causing delays to both departures and arrival of cargo.
Freight rates are also on the increase. Drewry’s World Container Index surged by 16% maintaining the impressive momentum seen throughout May and propelling freight rates back towards pre-COVID highs.
Several factors have contributed to these increases which have led to a significant spike in rates on the majority of trade routes – some levels not witnessed since September 2022.
Here are just some of the reasons, which combined together, result in increased freight rates and increased transit times:
- Red Sea vessel rerouting
- Robust demand across various regions (unseasonal)
- Increase congestion and turnaround times at ports resulting in loss of capacity
- Container shortages
- Adverse weather conditions
Freight rates are extremely cyclical and are changing rapidly within two-week windows. It is always a good idea to build a tolerance into costings to accommodate for these rapid fluctuations.
Due to the unpredictable conditions at present, all provided arrival times for shipments will be estimated only.
