Caroz Market Update: Early peak season and container shortages

Each monthly update we will highlight one trending topic which has an effect on the global ocean freight market.

Discover the latest insights into escalating container port congestion in Asia and its profound impact on global shipping. From rising delays in key hubs to forecasts of worsening capacity issues, explore how these developments are reshaping logistics strategies. Gain deeper understanding into early peak season dynamics and critical container shortages that are crucial for navigating today’s complex supply chain landscape.

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CAROZ’s eye opener:

Container port congestion in Asia has intensified, with projections indicating further escalation. According to Linerlytica, idle container ship capacity globally has risen from 2 million TEU to 2.1 million TEU since early June. While Singapore’s congestion has marginally improved, issues have shifted to major ports like Malaysia’s Port Kelang and Tanjung Pelepas. Chinese ports, notably Shanghai and Qingdao, continue to experience prolonged waiting times.

Linerlytica forecasts a worsening ‘capacity crunch’ as disruptions force ships into smaller feeder ports, evidenced by Maersk’s withdrawal of a transpacific service and delays in Asia-Europe sailings. Analysts suggest this activity might signify an early peak season or multi-vertical restocking following a slow 2023, aimed at pre-empting supply chain disruptions from July to September.

Drewry’s World Container Index reports varied growth in east-west trades, with notable increases on routes like Shanghai-Rotterdam (11%) due to mid-month surcharges. Despite these gains, supply chain pressures persist, threatening Asian export hubs and Mediterranean receiving ports. Container shortages, especially 40ft high-cube units in Bangladesh, exacerbate export disruptions, aggravated by congestion at Singapore and Chittagong port during Eid holidays.

Improvements in Panama Canal throughput, allowing 34 ships per day from July 22, offer some relief amid prior capacity reductions due to drought conditions, with expectations of full restoration by 2025 pending adequate rainfall.

Want to know more?

Each monthly update we will highlight the developments within the Ocean freight market including the following topics:

  • Trending topic: Early peak season and container shortages
  • Rail & Air | Asia – Europe
  • Space & rate developments
  • Port developments & congestion
  • Schedule reliability
  • TEU per operator
  • How to mitigate the risks

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