Delays in sea freight services persist, exacerbated by bad weather off the Cape of Good Hope, while disruptions in Bangladesh are easing, though a backlog still needs to be cleared.
Ongoing Delays to Sea Freight Services
The ongoing conflict in the Red Sea continues to disrupt the market, diverting the majority shipping traffic around Africa, straining capacity and creating delays. Rough seas from ongoing bad weather off the Cape of Good Hope have exacerbated the wait times. Other challenges to the current market situation include:
SE Asia Port Congestion: Southeast Asia is currently experiencing significant congestion at major hub ports, leading to delays in feeder vessel departures from various origin ports. This congestion is particularly affecting ports in Yangon, Myanmar, as well as key ports in Indonesia and Cambodia.
Key Chinese Ports Facing Delays: The situation in China remains unchanged, with ongoing delays at major ports, though conditions have not deteriorated further. Vessels are experiencing a few days of delays at key ports, such as Ningbo and Shanghai.
Equipment Challenges: Equipment shortages are widespread across Asia and are particularly severe in several key countries, including Bangladesh, China, Taiwan, India, Cambodia, and Thailand. These shortages are exacerbating congestion issues at ports.
We are facing considerable disruption to vessel schedules and extended transit times. Regrettably, we expect these supply chain issues to persist throughout August and continue until Golden Week.
Update on Political Unrest in Bangladesh
The situation for supply chains in Bangladesh has seen improvement over the past week. The internet is now stable, easing communication challenges. Office hours have been extended to operate from 10:00 to 18:00, and the curfew has been pushed back to 20:00, allowing for freer movement of cargo. This has facilitated the delivery of goods to ports and Container Freight Stations (CFS). However, there is still some ship congestion and a loading backlog to clear. Production delays in factories are likely to persist as a result of the curfew’s impact in previous weeks.
While we cannot predict future developments, we are hopeful that the curfew will be lifted entirely in the coming week.
If you have any questions or concerns regarding your shipment, please contact our Customer Service Team at 01376 533039.
