Neil Johnson

🚢Singapore 🇸🇬 a major shipping hub, is facing a critical #cargocrisis. The port is experiencing severe congestion, with ships waiting up to seven days to unload due to a surge in volume. This is partly caused by reroutes from the #RedSea crisis and #overloaded capacity. The backlog is forcing some cargo ships to skip Singapore altogether, further straining supply chains. This situation is expected to worsen in the coming month. ✔️Root causes 📍Post-Pandemic Surge: Global trade is rebounding from pandemic disruptions, leading to a natural increase in cargo volume. However, Singapore's port infrastructure hasn't fully adapted to handle this rapid growth. 📍Domino Effect:The Red Sea crisis, caused by the grounding of a giant container ship, forced reroutes through Singapore, further straining its capacity. This highlights the vulnerability of global supply chains to disruptions in key chokepoints. 📍Resource Constraints:The port lacks sufficient manpower and equipment to handle the current volume efficiently. Labor shortages and disruptions in the global supply chain for equipment like containers are contributing factors. ✔️Impacts and Repercussions ➕Shipping Cost Increases:Businesses face longer wait times and potential surcharges, leading to higher shipping costs which may be passed on to consumers. ➖Supply Chain Disruptions:Delays in Singapore ripple through global supply chains, potentially causing shortages of goods and price fluctuations. ✖️Pressure on Singapore's Economy: As a major trade and logistics hub, Singapore's economic growth could be hampered by the congestion, impacting businesses that rely on efficient port operations. ✔️Potential Solutions 📍Infrastructure Investment:Singapore needs to invest in expanding port capacity, including additional berths and improved logistics systems. 📍Technological Advancements:Automation and digitalization of port operations could streamline processes and improve efficiency. 📍Collaboration:Enhanced cooperation between port authorities, shipping lines, and logistics companies can help optimize resource allocation and scheduling. 📍Supply Chain Diversification:Businesses may consider near-shoring or friend-shoring strategies to reduce reliance on overly congested ports like Singapore. ✔️Long-Term Considerations The Singapore congestion crisis underscores the need for #resilient and #adaptableglobalsupplychains . Strategies like #near-shoring and diversification can help businesses mitigate risks associated with overreliance on single ports or regions. Additionally, #investments in #infrastructure and #technology will be crucial for major ports like Singapore to handle future surges in #tradevolume. #portinfrastructure #supplychaindisruption https://lnkd.in/dGA39p2V

8

1 Comment

While we are still far from the spot pricing seen during the pandemic, the recent spike has shippers worried. But what is behind this spike in pricing? One key driver is the congestion at ports around the world that are seeing increases in volumes due to the Red Sea crisis. For example: Singapore's container volume is up 8.8% YoY as shippers offload more containers to avoid future stops and speed up transit times. This increases the dwell time of ships in the port and is creating a large queue of vessels outside the port. Adding to the congestion for global ports, vessels originally schedule for Singapore are bypassing it for other downstream ports. By skipping the port, they are creating additional imbalance for equipment and offload times, exacerbating port congestion. According to Linerlytica- port congestion has tied up 2M TEU of ships, nearly 7% of the fleet, which is lending support to carrier rate hikes. To learn more about this issue, check out this great article from The Loadstar https://lnkd.in/ernF2uBx

17

1 Comment

Congestion in Singapore, the world’s second-busiest container port, has reached a critical level, compounding the shortage of ships and containers. Data from Linerlytica indicates that containerships have to wait up to seven days to berth in Singapore, recently seeing up to 450,000 teu of vessels in the queue. And port congestion globally is worsening and has tied up 2m teu of ships, nearly 7% of the fleet, which is lending support to carrier rate hikes. https://lnkd.in/eMXKNHQ9

13

1 Comment

Congestion At Singapore Extends To Port Klang The congestion may last beyond August and freight rates will continue to soar due to this congestion induced tonnage shortage. Both maritime hubs Singapore Port and Port Klang of Malaysia are located on the Straits of Malacca, a major ocean route linking Europe and the Middle East to East Asia. About 20 container ships are waiting for their turn near the Port Klang. Slots at Tanjong Pelepas, another major Malaysian port appear to be completely occupied. The congestion may last beyond August and freight rates will continue to soar due to this congestion induced tonnage shortage.PSA International Port Klang Authority

43

2 Comments

Credit to Glenn Taylor Tue, Jun 4, 2024 Singapore Port Congestion Sparks 7-Day Delays Amid Red Sea Fallout https://lnkd.in/gBijJrm7 The Red Sea crisis has had plenty of knock-on effects to the transportation of ocean freight worldwide, with major global ports now feeling the stress of shifting transit schedules. Severe congestion at the Port of Singapore is leading to berthing delays for ships lasting as long as seven days, according to data from container shipping analysis firm Linerlytica. Under normal conditions, a vessel waits about a half a day to berth at the port. The port is the second-largest in the world by total shipping tonnage handled after the Port of Shanghai, handling 39 million twenty-foot equivalent units (TEUs) in 2023, but also is the largest transshipment hub. This is vital for global trade, as ships carrying goods can stop at the gateway to unload goods going to other ports, before loading additional cargo to be transported to their destination port. “Singapore has 450,000 TEUs of capacity right now waiting to get into the port or get out of the port,” said Goetz Alebrand, head of ocean freight Americas at DHL Global Forwarding. “That is even more than during the pandemic for Singapore itself, which is a big hub for intra-Asia and for east-west trade lanes.” According to the Linerlytica report, the severe congestion has forced some carriers to blank their planned Singapore port calls, which will further aggravate the problem at downstream ports that will have to handle additional volumes. The gateway links to more than 600 ports worldwide, with an average 140,000 vessels calling at the port annually. Container volumes handled in Singapore in the first four months of 2024 amounted to 13.36 million TEUs, an 8.8-percent increase in container volumes over the same period last year, the Maritime and Port Authority (MPA) of Singapore said Thursday. From May 1 to May 23, the port received 999 ships, compared with just 639 in April, according to data from S&P Global Commodity Insights. The MPA said in a note that off-schedule arrivals have largely been to blame for the vessel-bunching effect, in which multiple ships reach a port at the same time, or within a short period. The authority contends that the average wait time for a berth is now two to three days while highlighting that it is only for container ships.

1

Like an armada of nimble pirates, several intra-Asia carriers have once again invaded the transpacific trade. An image of an alliance carrier shooing away these smaller players like a bee buzzing at their heads with growing annoyance won't leave my head as I write this. The fact that these carriers are once again here should come as no surprise to anyone, most importantly, the larger global carriers. When freight rates reach these levels, no one can blame any carrier for making hay while the sun shines. And that they enter the trade at rate levels undercutting their larger brethren shows that these annoying buzzing "bees" can sting. As frustrating as this must be for the big boys, there must be some shared faith knowing that even with the smaller carriers here, rates are unlikely to fall too far. The real story here is that Wan Hai, SeaLead and TS Lines are not coming back for a one-time payday like during pandemic. They are here to build a service that will be here for years. What's changed? I would argue that they see what the larger carriers know and that more shippers and importers need to accept. The days of really low rates on this trade are over. The proof, of course, will be in the pudding. Changing this trade is up to the carriers. They can be a force for their own best interest (and earnings) or they can be their own worst enemies. One could argue that the strength of the carriers has more to do with the Red Sea crisis. I don't disagree. It is also possible that the disruption there shook the carriers out of the temporary amnesia that they all seemed to be afflicted with last year. They are awake again, memories of the pandemic fresh in their collective minds. Though the Houthis gave them this initial gift, watching the carriers operate the last few months, not only are they not squandering this gift, but they are also doing a hell of a job of exploiting it. And I say this not as a criticism but simply as an intriguing observation. I strongly believed that the carriers would come out of the pandemic changed. Then, as the market turned (which everyone knew it would), it was like their feet were stuck in cement. Their reactions to the market shift were slow, unsure, and confused. Having tasted not only profitability, but massive profitability followed so quickly by a year where they once again stared at losses, they are back in the driver's seat. None of them wants to go back to just scrapping by as it was for decades prior to Covid. And if their plan to void sailings this early shows anything, it's that they aren't riding off the old playbooks anymore. They are watching the market, and they are reacting much faster. Rate levels are under pressure, no doubt. The last two GRIs failed so it is clear that rates have reached a tipping point. But anyone that thinks rates are going to fall off a cliff doesn't see these carriers as they are now. #carriers #oceanshipping #oceanfreight #transpacific #spotrates

27

1 Comment

🔍 Exploring Southeast Asia's Port Synergy: Patimban’s Role in the Future 🔍 After examining Patimban, Singapore, and Tanjung Priok, let’s focus on how these ports could complement each other in the long term: 🌍 Strategic Location: Patimban's proximity to key industrial areas and trade routes positions it as a valuable addition to the region, potentially reducing inland transportation costs. 🚢 Future Expansion: As Patimban continues to develop, how could its growth contribute to a more integrated and efficient logistics network across Southeast Asia? 🛠️ Technology-Driven Operations: With modern infrastructure and advancements in automation and digital port management, Patimban offers opportunities for collaboration, enhancing the region’s collective capacity to meet global trade demands.📢 What’s your perspective on Patimban’s role in fostering regional collaboration? Could it strengthen Southeast Asia’s position in global logistics? Let’s share ideas and insights on how these ports can work together for mutual benefit.📊 Are we entering a new era of port collaboration in Southeast Asia? #LogisticsInsights #PortSynergy #MaritimeCollaboration #PatimbanPotential #SmartPort #SupplyChainPartnerships #AutomationInPorts #PortExpansion #SoutheastAsiaLogistics #FuelSavings #RegionalIntegration #DigitalTransformation #LogisticsTech #ShippingEconomics #PortInnovation #GlobalTrade

17

🚨🌎🚢 Port Congestion Alert! 🚢🌎🚨 As I read the news about port congestion leading to a surge in ocean freight rates, I can't help but feel a sense of déjà vu 😬. Just a couple of years ago, we witnessed a similar scenario driven by the COVID-19 pandemic 🤕. It's a stark reminder of how interconnected our global supply chain is 🌐. An issue on the other side of the world can have a ripple effect, driving up operational costs and causing delays in deliveries 🕰️. And ultimately, it's the consumers who suffer the most 🤕. Let's hope that we can learn from the past and work together to mitigate the impact of port congestion on global trade 🤝. #portcongestion #oceanfreightrates #globalsupplychain #trade #logistics Berthing delays in Singapore as liner congestion in South-east Asia ports hits historic high https://lnkd.in/grGcrJ8V

29

A very interesting article I read recently highlights a significant incident occurred when a large container ship collided with a bridge in Baltimore, leading to the collapse of a key harbor crossing and halting shipping activities. This event underscored the existing vulnerabilities in the U.S. port and shipping infrastructure, which includes over 300 unprotected bridges. The incident has sparked discussions about the resilience of port infrastructures globally, especially in Asia, where the stakes are high due to the region's prominent role in international trade. As we know Singapore serves as a model of resilience with its strategic location and innovations like the world’s first fully-automated container port set to launch in 2040. This new port is designed to manage the demands of increasingly large ships and is strategically placed away from critical infrastructure to minimize potential disruptions. The use of AI-driven vessel management systems in Singapore highlights the increasing reliance on technology to enhance port safety and efficiency. The Baltimore incident acts as a crucial reminder of the need for improved infrastructure management and resilience strategies. As ports around the world face the challenges of larger ships and busier routes, the integration of data analytics and AI becomes essential. These technologies not only optimize operations but also enhance security and sustainability, making ports smarter and more resilient to future challenges. . . . . Reference: https://lnkd.in/d3zgA6YV . #MaritimeSafety #InfrastructureResilience #PortManagement #GlobalTrade #AIInShipping #DataAnalytics #SustainablePorts #ShippingIndustry #ContainerShipping #BaltimoreIncident #ShippingSafety #PortInnovation #ResilientInfrastructure #TradeEfficiency #MaritimeTechnology #GlobalShipping #SupplyChainResilience #EconomicImpact #PortSecurity #InfrastructureDevelopment

3

At the TradeWinds Shipowners Forum Singapore 2024 today, I made a passionate call for #digitalisation of all #tradedocuments. If there is one technology that will disrupt Maritime this decade, it is this. And the time is now. As Shaun Hon of Motion Ventures observed, technological advancement is progressing at a fast pace resulting in technology layers, and better technological infrastructure. Shipping companies are also now keeping a more open mind to new technologies, if it solves a problem for them, or has a real business case. So isn’t now the time! #maritime #shipping #maritime #digitalisation #ebills

197

6 Comments

Average container prices in China, which were already on an uptrend, have spiked even further by 88 per cent in the last two months. I have received a number of calls from concerned business partners, and inquiries as to when rates are expected to stabilize. The crystal ball is a little cloudy, but the following video may provide some insight regarding the challenges the supply chain are facing now and into the very near future.

3

Many of you may already are aware of the recent rise in global shipping rates. Unfortunately, this trend from Singapore is expected to continue with incremental charges being implemented by shipping carriers. Surcharge can vary depending on the carrier, route, and type of commodity you ship. Importantly, stay informed and check in regularly with our team if you have a preferred shipping carrier. Together with my team, we’re here to help navigate and overcome these challenges by working closely and staying updated with you. #supplychaindisruption #shipping #relocation #householdgoodsshipment #globalmobility #internationalmobility #export

30

Summary of the 2024 #HK #PolicyAddress: #International #Shipping #Centre and #Aviation #Hub In the recent Policy Address, significant initiatives were outlined to enhance Hong Kong's position as an International Shipping Centre and Aviation Hub: 1. International Shipping Centre: - Establishment of the Hong Kong Maritime and Port Development Board to boost research and promotion efforts. - Creation of a commodity trading ecosystem with tax concessions to attract international commodity exchanges. - Development of high value-added maritime services, including ship broking, financing, and insurance. - Implementation of the Action Plan on Green Maritime Fuel Bunkering to advance Hong Kong as a green maritime center. - Completion of a port community system to facilitate data exchange among stakeholders for smarter port operations. 2. International Aviation Hub: - Full utilization of the Three-Runway System to explore new destinations and expand flight options. - Development of the Airport City to establish a world-class landmark. - Completion of the Hong Kong International Airport Dongguan Logistics Park Phase 1, with plans for Phase 2 to strengthen air cargo capabilities. These initiatives aim to reinforce Hong Kong's competitive edge in global shipping and aviation, driving economic growth and innovation in the region. Details - https://lnkd.in/gQvD9CTj Picture - policyaddress.gov.hk #HongKong #PolicyAddress2024 #Shipping #Aviation #Hub #Innovation #EconomicGrowth

2

📢 Booming intra-Asia trade pushes container traffic to new monthly record In May, global container traffic reached a new monthly peak, driven mainly by a substantial increase in intra-Asia trade according to Container Trade Statistics (CTS) data. Intra-Asia volumes grew by 14.4% year on year to over 4.5 million teu. The Far East-North America trade saw a 5.9% increase, totaling over 2 million teu, while Far East-Europe trades grew by 2.9% to over 1.5 million teu. Spot rate hikes on transpacific and Asia-Europe trades are reflected in the CTS price index, with significant growth in the Far East-North America and Far East-Europe indices. Contract rates are being influenced by carrier and shipper negotiations, with shifts in contract duration and renewal timing. The impact of Houthi attacks on Red Sea shipping has also altered trade dynamics. Secondary trades, such as Far East-Middle East/India, Far East-Latin America, and Far East-Southern Africa, have experienced spikes in demand and prices, with substantial growth in volumes and price indices across these routes. #containershipping #intra-Asia #logistics https://lnkd.in/dNVpPTeP

1

Industry leaders express concern over certain CII flaws. Six major shipping organizations (BIMCO, CLIA, INTERCARGO, INTERMANAGER, ICS, and INTERTANKO) have issued a joint statement expressing their concern over some flaws of the Carbon Intensity Indicator (CII) regulation. With the IMO’s initial Carbon Intensity Indicator (CII) ratings delivered from Flag States to shipowners, organizations have noted the CII scheme’s inadequacies. Thus, they will continue to work to ensure a CII methodology that is accurate, reliable, and implemented in a manner that fully reflects the intent of the IMO Strategy for the world’s fleet of commercial ships. To achieve the IMO’s intent, the CII scheme must reflect the true efficiency rating for each ship. A one-size-fits-all instrument, as the CII is currently designed, has inherent flaws that work against its intended purpose of supporting our collective objective of reducing GHG emissions across the maritime industry, the organizations explain. https://lnkd.in/gfZ6RwYn

9

KUALA LUMPUR (Sept 9): Suria Capital Holdings Bhd said on Monday its wholly owned Sabah Ports Sdn Bhd (SPSB) has signed a collaboration agreement with Dubai-based port operator DP World FZE to operate the Sapangar Bay Container Port (SBCP). This agreement follows the successful execution of a conditional share subscription agreement announced earlier in April, where DP World FZE will subscribe to 3.57 million shares in SBCP, while SPSB will take up the remaining shares. The signing of the collaboration agreement marks the commencement of the joint development, management, and operation of SBCP, Suria Capital said in a filing to the local stock exchange. This partnership is set to bolster the growth of Sabah’s port industry and enhance its role as a logistics hub in the region," the company added. In April, Sabah Ports managing director Datuk Ng Kiat Min said the collaboration with DP World would help optimise SBCP’s operations, catalysing increased trade through Sabah and benefitting local communities and businesses. Under the collaboration, DP World aims to increase the port’s container handling capacity to 1.25 million TEUs by 2025. The partnership includes investments in workflow optimisation, digital enhancements to boost operational efficiency, and improved port connectivity. Shares in Suria Capital closed five sen or 2.38% lower at RM2.05 on Monday, giving it a market capitalisation of RM708.93 million.

7

Market Update Alert! #explorate #marketupdate #supplychain #insights

11

In the aftermath of Hurricane Helene and with the port strike deadline fast approaching, the elasticity of supply chain networks and the robustness of contingency plans will be tested under unforeseen constraints. While shippers had months to prepare for the strike, Helene has added an additional layer of disruption. The beneficiaries of these challenges will likely be companies that have implemented and tested technology to optimize their networks, fully utilizing capacity and resources. The freight market is at a critical juncture, and the ability to adapt will define success moving forward. #SupplyChain #FreightMarket #ContingencyPlanning #Logistics #PortStrike #Technology

55

1 Comment