Recently, global shipping giant Maersk Group said that due to 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. On June 5, the current major ports in the world have appeared congestion, sea freight continued to soar, Shanghai, Qingdao, Port Klang and Colombo and many other Asian ports have appeared different degrees of congestion. Several reports point to the Port of Singapore as the latest bottleneck.

Global shipping giant Maersk said there are signs of further congestion at ports around the world as the chaos caused by the Red Sea crisis continues due to strong demand in the container market. On June 5, the current major ports in the world have appeared congestion, sea freight continued to soar, Shanghai, Qingdao, Port Klang and Colombo and many other Asian ports have appeared different degrees of congestion. Several reports point to the Port of Singapore as the latest bottleneck.

According to a recent Bank of America report, increasing port congestion has reduced the supply of container ships by more than 2% since March this year. At present, Singapore, Dubai and the Mediterranean region are the main hotspots for congestion, while the supply of seats in Asia remains tight. In particular, the Port of Singapore, a large number of ships queued for berthing, up to 7 days to wait in line, the backlog of containers has exceeded a staggering 500,000 TEUs.

Linerlytica, an Asian container consultancy, also warned in its latest report that port congestion is once again plaguing the container market, with Singapore, the world's second busiest container port, becoming the latest bottleneck.

Due to severe congestion, some shipping companies have had to abandon plans to call at Singapore ports and switch to some downstream ports. But it also puts pressure on those downstream ports to handle more cargo, spreading the congestion even further.

To ease congestion, PSA Singapore has reactivated the old berths and storage yards at the defunct Keppel Terminal, while also adding significant manpower to deal with container build-up.

Currently, as of May 30, Asia-to-Europe freight rates have reached ,200 per 40-foot container, while Asia-to-North America West Coast freight rates have climbed to ,100.

Taking the route from China to North America as an example, since May, the freight rate of the US line has been raised three times in a row. Affected by the tight market capacity, it is expected that there will be a new round of price increases in mid-June. At present, the booking of the American line has been to the second half of June, and the space is tight in June. On the route from China to Europe, shipments rose rapidly in late May, and market demand was at a high level, superposed by the Red Sea detour in April and May, resulting in a large number of ship owners missing boxes and dumping cabinets, which directly affected the supply of shipping space in early June. But with the arrival of the summer holiday season in Europe, the situation may be alleviated.

In addition to the geopolitical crisis in the Red Sea, the frequent occurrence of extreme weather around the world can also cause shipping delays. Together with the future strike of port workers on the East Coast and Gulf of Mexico, it is the cause of the "big ship jam" at ports around the world.

Therefore, Dongguan New Fortune Paper reminds customers, please do order plan in advance, so as not to cause unnecessary losses caused by the blockage of production materials.