Port risk warning! Recent shipment must pay attention to delay!
Recently, due to the strong demand in the container market, the chaos caused by the Red Sea crisis continues, and there are signs of further congestion at ports around the world, according to the weekly report published by the shipping consultancy Linerlytica on June 3, the global container capacity waiting to enter the port rose to 2.1 million TEUs, accounting for 7.1% of the total global container capacity.
In addition, several major ports in Europe and the United States are facing the threat of strikes, adding fuel to the already chaotic global shipping fire.
Foreign trade people who ship to the following ports must pay attention to the risks of the local port and remind customers in time!
Singapore Port congestion
Congestion at the port of Singapore, the world's second-largest container port and a major transit hub in Asia, is critical to global trade.
The number of containers waiting to be docked in Singapore surged in May, reaching a peak of 486,600 20-foot standard containers in late May.
In an effort to ease congestion, Singapore's PSA has reactivated the old berths and storage yards at the abandoned Keppel Terminal, while also adding significant manpower to deal with the backlog of containers.
But according to a recent report by Linerlytica, an Asian container consultancy, container ships may now have to wait up to seven days for a berth in Singapore, compared with a normal half day.
Linerlytica said in a recent report that this has led some shippers to abandon docking in Singapore to other neighboring ports such as Malaysia, putting more pressure on already crowded and low-capacity ports and potentially worsening the situation in the coming month.
The port of Durban is congested
The Port of Durban is the largest container port in South Africa, but according to the 2023 Container Port Performance Index (CPPI) released by the World Bank, it ranks 398th out of 405 container ports in the world.
Extreme weather and equipment failures at port operator Transnet have left more than 90 ships waiting outside the port. The congestion is expected to last for months, with shipping giants imposing congestion surcharges on South African importers due to equipment maintenance and a lack of available equipment, further adding to the economic pressure.
Colombo port is congested
The Port of Colombo has a backlog of 50,000 TEU of cargo due to Labour shortages and reduced efficiency, which has led to shipment delays and rate hikes, causing confusion in the transfer of cargo at key transit ports in South Asia. Freight rates in Colombo have doubled due to congestion and delays, with shippers needing to book a slot eight weeks in advance.
Congestion at the port of Colombo affects not only Colombo itself, but also its neighbours India and Bangladesh.
Strikes at all major French ports
All major French ports, especially the container hubs of Le Havre and Marseille Forth, are facing the threat of a month-long strike in the near future, which is expected to cause serious operational disruption and disruption.
The strike was prompted by the union representing dockworkers and other port workers, which plans to hold several one-day strikes and multiple stoptimes lasting four hours in June to protest the government's pension reforms that raise the legal retirement age.
On Friday, June 7, the first 24-hour strike broke out. The union plans to continue strike action in the coming weeks, which could be extended into July if the union fails to get a satisfactory answer from the government.
During the first strike, ro-ro ships, bulk carriers and container terminals were blocked by dockers at the port of Le Havre, leading to the cancellation of the docking of four ships and the delay of another 18 ships. Meanwhile, in Marseille Foss, about 600 dockers and other port workers blocked the main entrance to the container terminal for trucks. In addition, the French ports of Dunkirk, Rouen, Bordeaux and Nantes Saint-Nazaire were also affected.
Port of Hamburg strike
On June 7, local time, port workers in the German port of Hamburg launched a warning strike, resulting in the suspension of terminal operations. The terminals of companies such as the Hamburg Port and Logistics Company (HHLA) and Eurogate were affected as a result. HHLA said its Hamburg branches would join the strike, including the Burchardkai (CTB), Altenwerder (CTA) and Tollerort (CTT) container terminals.
Freight forwarding giant Kuehne+Nagel issued a warning on its website, saying that following the strike in the Port of Hamburg, the trade union Verdi has also announced two more strikes in Bremen and Bremerhaven.
Threat of port strikes in the East and Gulf of Mexico
The International Longshoremen's Association (ILA) stopped negotiations over concerns about the use of automatic door systems at APM terminals, which could trigger strikes by longshoremen in the eastern United States and the Gulf of Mexico. The ILA is the largest longshoreman union in the United States.
Port gridlock on the U.S. East Coast mirrors what happened on the West Coast for much of 2022 and 2023. Last June, 29 ports on the U.S. West Coast finally reached a six-year labor contract agreement, ending 13 months of tense stalled negotiations, strikes and the relocation of cargo to other locations.
Retailers in Europe and the US have started restocking ahead of schedule to cope with shipping delays and supply chain uncertainty. Foreign trade people who are busy shipping must pay attention to freight and shipping space changes!
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