Asian Port Congestion Due to Red Sea Rerouting

Fluctuating services configurations at ports have led to congestion due to unexpected events and higher volumes, putting pressure on infrastructure and inland operations. The increase in off-window arrivals and Red Sea diversions is contributing to congestion hotspots, with fewer mainline calls taking longer and carriers consolidating cargo onto specific routes, leading to larger parcel sizes at main ports. This has resulted in increased dwell times at ports like Jebel Ali, exacerbated by holidays and recent events like the Dubai floods.

The challenges facing ports like Jebel Ali are not unique, with Southeast Asian ports also experiencing increased waiting times. The Indian Subcontinent/Middle East and Southeast Asia regions account for a significant portion of global port congestion. Anecdotal evidence suggests widespread congestion from ports east of Suez to Ningbo, Shanghai, Singapore, Port Klang, and Dubai, with the trend expected to continue as capacity and vessel sizes fluctuate.

Changes in vessel reconfigurations and cargo handling are impacting ports worldwide, with logistical implications and the fear that congestion in Asia will eventually reach European ports. The pressure on hub ports to handle larger vessels and increased feeder vessels is expected to bring congestion to Europe as well. The situation has echoes of the pandemic, with ongoing challenges in adapting to changing volumes and routes posing difficulties for port operations.

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