Conflict in the Middle East demonstrates how a regional crisis can quickly ripple across supply chains, eventually impacting shippers at a global level.
Latest Xeneta ocean container shipping data highlights are provided below quotes from Xeneta Chief Analyst Peter Sand.
Xeneta analyst insight
Peter Sand, Xeneta Chief Analyst: “The escalation of conflict in the Middle East demonstrates how a regional crisis can quickly ripple across supply chains, eventually impacting shippers at a global level through delays, port congestion and escalating freight rates.”
“Xeneta data shows 147 container ships sheltering in the Arabian Gulf and unable to leave due to the risk of sailing through an active conflict zone.”
Global supply chains do not stop, even during the most severe crisis, so more ships are on the water right now sailing to the Arabian Gulf – the question is what ports they will be diverted to and where containers will be offloaded.
Alternative ports are not equipped to deal with a sudden increase in volumes arriving against chaotic schedules, so severe congestion is expected.
Port congestion ripples across supply chains, so major transshipment hubs in Asia, such as Tanjung Pelepas and Singapore, will be impacted.
Ripple effects are also seen in freight rates, with the most significant increases found on trades closest to the epicenter of conflict. (....)