Data from Container xChange shows that container prices in Singapore rose 26% in the six months to May this year as global congestion increased demand for containers.
The online infrastructure provider said that the situation in some major ports has become increasingly tight, with shipping lines canceling calls at some of the world's busiest and most important terminals, such as Hong Kong, Ningbo, Singapore and Shanghai.
The price of a 40-foot high cube container rose from $1,499 in October to $1,890 in May, reflecting the impact of the Red Sea crisis and the widespread damage caused by the conflict in the Middle East.
"The situation is expected to continue into June and beyond, affected by a combination of factors such as the gathering of ships, disruptions to global shipping schedules and increased demand for container handling capacity." Christian Roeloff, co-founder and CEO of Container xChange, explained: "Continued congestion in key hubs such as Singapore could affect global trade flows, affecting the flow of goods between Asia, Europe and the Americas."
The chaos in the Red Sea has already led to a large number of large ships arriving in Europe, and ports are unable to cope with the level of cargo being unloaded, leading to delays, which have also been seen in Singapore and Shanghai, said Peter Sand, chief analyst at Xeneta.
"Ports and terminals are better at handling more calls with less cargo, even out freight flows, rather than high throughput of large container ships," Sander said.
Congestion at major ports means increased waiting times, which leads to more emissions, which will become an increasingly important factor in shipping costs over the next decade.
