Sea freight challenges persist, with severe port congestion continuing across Southeast Asia and unresolved backlogs in Bangladesh. Recently, additional delays have emerged due to congestion at the Port of Felixstowe.
Rerouting around the Cape of Good Hope has become the norm for shipping lines as Houthi activity intensifies in the Red Sea region. With no immediate resolution in sight, this detour is expected to continue until the Red Sea is once again safe for cargo transport. However, rough seas and adverse weather off the Cape of Good Hope are further extending transit times for vessels navigating around Africa.
On a positive note, the gap between supply and demand for goods from China is narrowing, which is easing pressure on capacity and reducing congestion at key Chinese ports. However, these improvements have yet to reach Southeast Asian hub ports, which remain severely congested.
The challenges currently facing the market include:
Congestion at Port of Felixstowe: Ongoing delays in vessel departures from Asia have led to significant congestion at the port. This congestion is the result of bunching of delayed ships arriving simultaneously and a reduced labour force during the UK summer holidays, resulting in slower port operations.
Improved Conditions at Chinese Ports: Service levels continue to improve in China as capacity stabilises. Key ports such as Ningbo and Shanghai are experiencing no more than a day or two of delays at present.
Ongoing SE Asia Port Congestion: Severe congestion persists at key Southeast Asian hub ports. Yangon Port in Myanmar remains particularly gridlocked, while Singapore and Tanjung Pelepas are also heavily impacted, disrupting feeder vessel connections and causing delays in regular rotations.
Backlogs in Bangladesh: Chittagong (Chattogram) Port continues to face significant pressure, struggling to clear a backlog caused by recent civil unrest. Severe flooding has further hampered operations, compounding delays in deliveries to container freight stations and port loading activities.
Strikes at India’s Ports Averted: Fears of supply chain disruptions from an indefinite strike by Indian port workers have eased. The strike, which was set to impact 12 major ports, was called off after negotiators from India’s shipping ministry agreed to wage increases and additional benefits for approximately 20,000 dockworkers.
Adverse Weather Closes Mundra Port in India: Vessel berthing at Mundra Port in Gujarat has been suspended due to high wind speeds and heavy rain from cyclones affecting the region. Operations will resume once weather conditions improve.
Despite some improvements, irregularities in shipping schedules and extended transit times continue to pose challenges. Unfortunately, these supply chain issues are expected to persist throughout September and extend until Golden Week.
If you have any questions or concerns regarding your shipment, please contact our Customer Service Team at 01376 533039.
