Red Sea Crisis Causes Severe Congestion at Transshipment Ports Worldwide

The crisis in the Red Sea has led to significant congestion at important transshipment ports worldwide, with Singapore being a prime example. According to a report by shipping consultancy Drewry, the crisis stems from abrupt changes in carriers’ service patterns and vessel diversions, resulting in increased congestion at shipyards and declining port productivity. Singapore, along with other transshipment ports, is currently struggling with a backlog of cargo containers that rivals levels seen during the peak of the pandemic.

Despite an 8% increase in throughput at the Port of Singapore in the five months to May, Drewry’s report shows that the port’s productivity has suffered due to a 22% increase in average parcel size. Turnaround times for 1,000 twenty-foot equivalent units (TEU) have increased, with interchange times for ultra-large container vessels seeing a 41% rise from January to May. The current congestion differs from that experienced during the pandemic, affecting transshipment hubs due to individual exchange changes.

Drewry predicts that congestion at major transshipment ports will continue to be a significant issue, but may ease slightly as shipping lines add capacity and restore disrupted schedules. The coordination of crossings between mainline vessels has been hampered by factors such as a high number of empty sailings, congested shipyards, and disrupted mainline feeder services. Despite the challenges, efforts are being made to address the congestion and alleviate the strain on transshipment ports.

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