Boxports are struggling as vessel arrivals near COVID-19 levels

Container ports are currently facing chaotic schedules reminiscent of the disruptions seen during the COVID-19 pandemic. A recent report from Danish consultancy Sea-Intelligence highlights a significant increase in vessel bunching this year, where multiple vessels are scheduled to depart on the same service within the same week. This trend is particularly pronounced on the Asia-Europe route, where vessel bunching has returned to pandemic-era levels, largely due to the ongoing crisis in the Red Sea.

Schedule delays often contribute to vessel bunching, defined by Sea Intelligence as a situation where a carrier deploys several vessels on the same service within a single week. This increased vessel bunching puts greater pressure on ports and terminals, leading to congestion that can further strain the availability of truck, rail, and barge services.

Sea Intelligence cautioned that there are currently no signs of relief for port congestion. In 2024, liner shipping encountered unprecedented supply chain disruptions, rivalling the challenges faced during the pandemic.

The Houthis in Yemen have effectively severed container shipping access through the Suez Canal, resulting in a significant rerouting of box ships around the Cape of Good Hope. This redirection has exacerbated vessel bunching and congestion worldwide, compounded by strike actions among supply chain workers.

For instance, Singapore’s port has reported that approximately 90% of container vessels are arriving off-schedule, up from an average of 77% in 2023. Furthermore, vessel stays at PSA have increased by 22% compared to the same timeframe last year.

PSA Singapore’s top management has implemented various strategies to maintain its efficiency in global trade. In May, to mitigate the severe congestion, PSA reactivated older berths and yards previously vacated at Keppel Terminal and significantly increased manpower to manage the growing backlog of containers.