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A combination of strong demand and container shortages is predicted to result in higher freight rates in the coming months.

Europe and the USA remain impacted by geopolitical tensions in Middle East with longer transits and higher prices. Consequently, containers take longer to return to their origins, and the cycle of container shortages seen during the pandemic is once again in effect.

In addition, it should be noted Singapore port is experiencing congestion, which is going to continue to cause the tranship delays we are already experiencing. A seven-day wait for berthing has been reported by several vessels in the last week. This waiting period tends to worsen and persist for some time before improving. Due to the busy global shipping season, congestion is likely to remain an issue for the remainder of the year.

We also need to consider the Pacific typhoon season of 2024 as an additional factor. The typhoon season is an ongoing event in the annual cycle of tropical cyclone formation in the western Pacific Ocean. The season runs throughout 2024, though most tropical cyclones typically develop between May and October. The season’s first named storm, Ewiniar, locally known as Aghon, developed on May 25 in the Philippines, and eventually intensified into the first typhoon of the season. On May 30, the Hong Kong Observatory (HKO) raised the T1 typhoon signal at 5.40pm, marking this year’s first tropical cyclone warning to be issued. This event has already saw vessel omission and delays through various ports.

As these challenges continue, our teams will do their best to keep you updated on shipment milestones and to minimise any negative impacts that can be controlled.

 

 

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