08 July 2024
In a statement to WorldCargo News, Xeneta’s Chief Analyst discusses Singapore’s port congestion impacting global shipment networks significantly.
Peter Sand, Xeneta’s Chief Analyst, provided WorldCargo News with updates on the situation in Singapore regarding vessel waiting times, congestion and shipment delays.
“Spot rates jumped on 1 July, up by 116% since the end of May, from US$840 to US$1813. A large part of the reason behind the spot rate jump – is found in the world’s largest transhipment hub, Singapore,” says Sand.
The 7-day moving average vessel waiting time is around 2.25 days, but the range is wide – with extreme cases going up to a week.
“We note that some carriers are starting to omit the port – even though this isn’t easy or something a lot of them can easily do,” adds Xeneta’s Chief Analyst.
“Port congestion in a main hub is causing troubles across the networks. When it happens on both ends (also in Rotterdam) – it gets very problematic. Port congestion also tends to bring about container yard congestion, reducing terminal productivity and port throughput,” says Sand in a statement to WorldCargo News, concluding: “The port of Singapore has reopened an old terminal to ease the pressure, but this action alone cannot fully relieve the congestion in the overloaded port.