Linerlytica, a container shipping market analysis firm, recently revealed in a report that six out of 11 ships scheduled to operate on the Asia-North Europe route last week (week 21) failed to depart on time.
This is due to delays in shipping schedules caused by congestion in Singapore and Malaysian ports. “Although congestion at Singapore, the world’s second busiest port, has eased, the burden has shifted to Port Klang and Tanjung Pelepas in Malaysia, still worsening shipping reliability. Waiting times for arriving ships have already increased at all major Chinese ports, with Shanghai and Qingdao experiencing the longest delays of up to five days. This is the biggest delay since the pandemic,” said an official.
Additionally, based on S&P ship tracking data, 50 ships were found to be waiting at Shanghai anchorage, including Cosco Shipping Mexico and CMA CGM Big Sur, which have been at the port since last week.
S&P data also shows 51 ships waiting at Port Klang, indicating that ship queues in Southeast and Northeast Asian ports account for 29% and 23%, respectively.
As a result of this port congestion, major shipping companies are expected to increase blank sailings, citing schedule reliability, which market experts predict will further stimulate container freight rate increases. If the situation does not improve, Asia-Europe capacity will continue to decrease, and shippers, feeling the burden of rising freight rates, are expected to increase their so-called pre-peak season push demand, repeating a vicious cycle.
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