Red Sea Crisis Causes Gridlock as Chinese Exporters Try to Beat U.S. Tariff Deadline

00:00

00:00/00:00

Listen to this article 1x

Containers piled up at Singapore Port on May 27, 2024.

The combination of capacity constraints due to the Red Sea crisis and a surge in Chinese exports has increased congestion at docks around the world, with Southeast Asian ports like Singapore hit the hardest.

From May 27 to June 2, the punctuality rate of the world's major ports dropped to just 44.47%, down 4% from the previous week, according to the Shanghai Shipping Exchange’s punctuality rate report released Thursday.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Global port punctuality dropped to 44.47% from May 27 to June 2 due to Red Sea crisis and rising Chinese exports, especially impacting Southeast Asia.
Congestion worsened at major Chinese and Southeast Asian ports, with significant berthing delays and rerouting impacts, as ports like Singapore, Port Klang, and Tanjung Pelepas experienced prolonged waiting times.
Efforts to mitigate include reopening old berths at Singapore, Maersk rerouting around Cape of Good Hope, and calls for international intervention in the Red Sea crisis.

AI generated, for reference only

Who’s Who

Shanghai Shipping Exchange: The Shanghai Shipping Exchange monitors maritime activities, including punctuality rates of global major ports. Their recent report showed the punctuality rate dropping to 44.47% from May 27 to June 2, 2023, a 4% decline from the previous week. The exchange also provided data on average waiting times at ports like Singapore, Tanjung Pelepas, Port Klang, Shanghai, and Qingdao during the same period.

Linerlytica: Linerlytica is a shipping consultancy firm mentioned in the article. They report that container congestion at Asian ports is worsening, with increasing berthing delays at hubs in China and Southeast Asia. They provide data on specific ports like Singapore, Port Klang, and Tanjung Pelepas, as well as insights on waiting times and capacity issues.

Port of Singapore Authority: The Port of Singapore Authority (PSA) has reopened the old berths of the abandoned Keppel Terminal and brought in additional manpower to alleviate congestion at the port. This measure is part of efforts to address the strain caused by increased shipping delays and the Red Sea crisis.

A.P. Moller-Maersk A/S: A.P. Moller-Maersk A/S, a Danish shipping giant, announced on May 6 that it will reroute ships around the Cape of Good Hope due to the Red Sea crisis. This rerouting is expected to result in a 15-20% overall capacity loss on its Asia-Europe routes in the second quarter.

CEVA Logistics: CEVA Logistics noted that the traditional shipping season began early this year, starting in mid-April instead of June to August. This shift has been driven by U.S.-China trade tensions, prompting buyers to pre-stock and boosting China's exports as exporters rush to ship goods before the imposition of higher U.S. tariffs on August 1.

AI generated, for reference only