Ongoing issues in the United States and Middle East continue to impact shipping across the Asia Pacific region according to C.H. Robinson Vice President of APAC Andrew Coldrey.
Although the recent longshoreman’s strike across America’s east and gulf coasts has had a limited impact on cost, the Atlantic hurricane season which has seen two separate storms hit land in the United States in a matter of weeks has thrown another variable into an industry that is already stretched due to the continuing Middle East conflict.
The recent strike only lasted three days before a tentative wage agreement was reached until January 15 2025, where the potential of another strike still looms.
Industry forecasts indicated each day of striking would lead to five days of backlogs.
“Proactive negotiations and strategic rerouting are establishing the future dynamics of ocean trade,” Coldrey says.
The recent United States port strike will also lead to an increase in charter demand and capacity shortage on air freight operations, and as a result drive a high rate of increase.
“Amidst growing demand and global disruptions, booking in and leveraging digital supply chain solutions remains the surest path to enhance visibility and efficiency,” Coldrey says.
The Middle East conflict and shippers’ desire to avoid the Suez Canal continues to impact shipping time and costs across the world.
The longer trade route around the Cape of Good Hope is ensuring ships’ safety from consistent Houthi rebel strikes in the Red Sea but is absorbing an estimated 6-9 per cent of global capacity.
Port congestion in key southeast Asian port hubs of Singapore, Port Klang and Tanjung Pelepas has improved, but the desire to omit port calls to stay on schedule amid the congestion is causing further congestion across Asia, largely in the north Asian ports of Shanghai and Ningbo.
Much like the Atlantic storm season, recent Typhoons Yagi and Bebinca have also caused additional delays and damage to ports in China and Vietnam.
The DP World Foundation recently committed US$45,000 to aid Vietnam’s recovery from Yagi, which hit land in the region in early September.
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