Red Sea crisis making for extended shipping times

The Red Sea crisis and global port congestions will impact peak season shipping for retailers. 

Extended shipping times, increased costs, and port delays will be felt globally, with China and Europe feeling the brunt of the impacts. Extended shipping times are tying up cargo ships and containers moving from China to Europe as 66% of freight is avoiding the Red Sea and opting for the longer route around Cape Hope. Port congestion in Singapore is building up as shipping routes are being diverted, creating a backlog of containers and mismanagement of port operations.

Port delays are not unique to China exports. European nations are experiencing bottlenecks as labor negotiations and strikes delay receiving ships. This has a domino effect on transit times, with product already taking longer to get to the destination port with increased travel routes. Port labor strike uncertainty is also driving shippers to look at alternative delivery ports, which further impacts the delays we’re seeing in Singapore with diverted freight.
 
The domino effect of implications on ocean freight is flowing both directions. Increased transits, delays at ports, and last-minute changes are all adding costs to international shipping. Peak season shipping has started in some regions but is still ramping up, furthering the costs increases as demand begins to spike.