Red Sea rerouting causing Asian port congestion

16th May, 2024

FLUCTUATING service configurations have led to congestion buildup at certain ports, reports UK's Seatrade Maritime News.

Unexpected events, coupled with increased volumes, are putting pressure on infrastructure and inland operations. Their struggle to adapt to changing volumes is causing backlogs and congestion in specific regions.

Drewry Shipping Consultants expert Eleanor Hadland highlighted they're witnessing emerging congestion hotspots, with Red Sea diversions contributing to the issue.

Off-window arrivals are overall negatively impacting terminal performance.

Ms Hadland stated that the hardest-hit markets are experiencing fewer mainline calls, yet each call takes longer.

This suggests a higher cargo exchange rate as carriers consolidate cargo to and from specific markets onto fewer services.

"For example, whereas Asia-ME cargo may previously have been handled on a wayport basis (ie, dropped off / collected at key hubs on Asia-Europe trade), this is now being consolidated onto specific Asia-Middle East routes leading to larger parcel sizes being handled at the main ports," said Ms Hadland.

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