Singapore shipping big ship jam

Singapore is one of the world's busiest ports and a major transit hub in Asia. The recent congestion in Singapore's ports has attracted attention from the industry. There are two main reasons for the congestion in Singapore's ports: shipping delays and a surge in container throughput.

The latest data shows that the number of containers waiting to berth in Singapore has surged in May. At the peak in late May, the highest number of containers waiting to berth reached 480,600 20-foot standard containers. It may take up to seven days to get a berth, while under normal circumstances, ships only need to wait for half a day at most.

In order to ease the congestion at the port, the port operator Singapore Port Authority said that it has reactivated the old berths and docks of Singapore Keppel Terminal that had been decommissioned, and increased manpower. After taking new measures, Singapore Port Authority said that the number of containers that can be handled per week will increase from 770,000 standard containers to 820,000.

Data as of May 30 showed that the current freight rate from Asia to Europe has reached US$6,200 per 40-foot container, while the freight rate from Asia to the west coast of North America has also climbed to US$6,100.

The global supply chain is now facing several uncertainties, including the geopolitical crisis in the Red Sea, frequent extreme weather around the world that will cause shipping delays, and the risk of strikes. S&P Global's report pointed out that Canadian customs border workers may strike in June, and in addition, workers may also strike at ports on the East Coast and the Gulf of Mexico in the United States after their contracts expire this fall.

For more information on ferroalloy price trends and market conditions, please contact Hainan West Asia Group.