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Some 20 container ships are stranded waiting outside Malaysia’s Klang Port due to congestion in Singapore and Malaysia, Bloomberg reports. Slots at Singapore and Malaysia’s Tanjong Pelepas port terminals are also reportedly full, but fewer ships idling outside these ports. The congestion at Asian ports has been attributed to increased traffic due to vessels rerouting away from the Suez Canal to avoid attacks in the Red Sea. Container vessel rates have risen due to rerouting and delays with terminal congestion said to last through August, analysts tell Bloomberg.
Air freight rates are surging in response to the maritime logjam: Some 20% of Singaporean logistics providers are shifting from maritime transport to air freight due to port congestion, CNA reports. Maritime congestion caused shipping costs to rise by up to 50% since the beginning of the year. Freight rates are also forecasted to increase, with cargo planes packed for the next coming two months.The Asia-Pacific region’s demand for air cargo jumped up by almost 20% y-o-y in May.
German shipping giant Hapag-Lloyd has boosted its earnings forecast for the year due to rising demand and growing short-term freight rates, Reuters reports. The company’s bottom line is slated to hit EUR 4.2 bn, up from previous projections of EUR 3.5 bn, the newswire writes.
Rates are on the rise: Hapag-Lloyd will implement an equipment imbalance surcharge of USD 500 per container on all dry equipment from all ports in India to all ports in Africa, effective 15 July, until further notice, according to a statement. It is also putting in place a peak season surcharge on all cargo traveling from India to Africa, effective 15 July and until further notice, set at USD 1k per container to East Africa and USD 500 per container to South, West, and South West Africa, according to a statement.
The Panama Canal aims to complete USD 1.6 bn new Indio River water reservoir in six years to boost the canal’s vessel transit capacity, AP reports. The body of water will be connected to the canal’s existing network of artificial lakes that are used to aid passage through the shipping strait. The move looks to maintain the transit of 36 vessels per day, Reuters reported.
REMEMBER- The Panama Canal is expected to take the rest of this year to recover from a drought that has depleted water reserves, restricted transit, and incurred USD mns in losses to shippers.
A cargo ship has been abandoned and 18 crewmen rescued after 33-foot waves hit the vessel off the South African coast, Bloomberg reports. Some ports along South Africa’s coast have halted shipping activity and state rail and port company Transnet is “continuously monitoring operations,” Bloomberg writes. Shipping giant Maersk warned on Monday that violent weather conditions could impact vessel movement along the South African coast.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Mali says airlines should refuel elsewhere: Mali is experiencing a fuel shortage and its Transport Ministry is advising airlines to refuel in neighboring countries until next week. (Reuters)
