- Global Shipping Congestion: Escalating Red Sea crisis and rising demand have intensified global shipping congestion, leading to significant rate hikes and severe shortages of shipping space and containers.
- Port Congestion: Major ports, especially in Singapore, Dubai, and the Mediterranean, are severely congested, affecting the entire logistics chain.
- Singapore's Situation: Singapore, the world's second-largest container port, is experiencing historic highs in backlogs with nearly 500,000 TEUs and delays extending up to seven days.
- Maersk's Response: Due to the worsening situation, Maersk has ceased its TP20 East Coast service and introduced blank sailings on routes from Asia to the Mediterranean.
- Cancellation Rates: Drewry reports a 7% cancellation rate for major routes between June 6 and July 7, with significant cancellations on trans-Pacific, Asia-North Europe, and Mediterranean routes.
- Impact on Freight Rates: Prolonged port congestion may accelerate the implementation of General Rate Increases (GRIs), further driving up freight rates amidst rising spot freight rates.
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