Shipper Alert! Critical Chinese Port Congestion Spreading Delays & Upping Freight Rates
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Congestion at the Port of Singapore hit critical levels over these last couple weeks. Container ships are having to anchor and wait to dock, with wait-time estimates of up to seven days. This is as ships are already spread thin by having to reroute away from the Suez Canal because of Iran-backed, anti-Israel Houthi attacks in the Red Sea and Gulf and Aiden making it unsafe for them and their crews.
Shipping Watch reports that nearly half a million containers are waiting at the Port of Singapore.
Other major ports in China are also seeing significant congestion. Chinese exporters and U.S. importers from China are rushing to get goods moved through the ports before President Biden’s tariff increases hit, which adds to the congestion.
As is usually the case, the congestion at ports in China ripples through global supply chains. Availability of container ships and shipping containers is causing shortages and delays for shippers in other regions.
This is also adding even more upward pressure on freight rates that are already very high.
The international shipping industry was already stretched thin. Global supply chains are now likely to suffer serious disruption while shippers pay high freight rates for delayed imports and exports.