Delays in sea freight services continue, worsened by adverse weather near the Cape of Good Hope. Although the civil unrest in Bangladesh has subsided, a backlog still needs to be cleared.
The ongoing conflict in the Red Sea is still disrupting the market, forcing most shipping traffic to reroute around Africa, which has strained capacity and is causing delays. Rough seas from persistent bad weather off the Cape of Good Hope have further extended wait times. However, there are subtle signs of softening demand for goods from China, which is slightly narrowing the gap between demand and supply. Current challenges to the market situation include:
SE Asia Port Congestion Severe: Southeast Asia is facing severe congestion at key hub ports, including Yangon, Singapore, and Tanjung Pelepas. This congestion is causing delays in feeder vessel connections, further disrupting the regular feeder vessel rotation.
Equipment Challenges Persist: 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.
Bangladesh and Indian SubContinent Delays: Bangladesh and the Indian Subcontinent are facing significant challenges, particularly in the aftermath of severe civil unrest in Bangladesh. Although the resumption of operations in Bangladesh is good news, backlogs and congestion are still causing delays in departures.
Chinese Port Delays Easing: The situation in China is stabilising, with no further deterioration of services. Vessels are now experiencing only a few days of delays at key ports, such as Ningbo and Shanghai.
Upcoming Strikes at India’s Ports: Dockworkers at 12 major ports in India have announced plans for an indefinite strike starting on 28th August, following unsuccessful wage negotiations. We have been made aware that this strike could cause significant disruption to cargo movement, resulting in increased congestion and delays.
We continue to face some disruption to vessel schedules and extended transit times. Regrettably, we expect these supply chain issues to persist throughout the second half of August and potentially continue until Golden Week.
If you have any questions or concerns regarding your shipment, please contact our Customer Service Team at 01376 533039.