Key transhipment ports, such as Singapore, are grappling with unprecedented congestion as a result of Red Sea carrier service diversions. These changes have resulted in fewer vessel calls but significantly larger average exchanges, compounding yard congestion issues.
Recent data highlights a troubling trend in port productivity. Drewry’s latest analysis shows a 43% increase in the time ships spend waiting to berth at high-volume ports between Q3 2023 and Q2 2024, translating to over 400,000 hours. This extended waiting time underscores the severe impact on port efficiency.
Singapore epitomizes the challenges faced by transhipment ports globally. The disruptions caused by the Red Sea crisis have mirrored pandemic-era container density levels in terminals. Despite an 8% year-on-year growth in throughput during the first five months of the year, the surge in container volumes has strained existing handling capacities.
The rerouting of container vessels away from the Red Sea, triggered by Houthi attacks, has led to a 22% increase in average parcel sizes from January to May. This shift has significantly impacted port productivity. Drewry’s Ports and Terminals Insight report reveals that the average time to handle 1,000 TEUs rose by 10% during this period, reaching 0.32 days. Consequently, the time required to manage exchanges for Ultra Large Container Vessels (ULCVs) has jumped 41%, from 1.1 days in January to 1.7 days in May.
The current congestion crisis starkly contrasts with that of the pandemic. Previously, gateway ports suffered due to surging cargo demand and inland transport congestion. Now, transhipment hubs bear the brunt of service pattern changes. Aligning mainline-mainline vessel transfers has become a formidable challenge due to frequent blank sailings. Similarly, mainline-feeder service coordination is hampered by yard congestion, off-window arrivals, and the prioritization of mainline vessels over feeders.
