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Data and analytics firm Russell Group reported that ongoing congestion at the Ports of Singapore, Port Klang and Tanjung Pelepas has the potential to disrupt trade worth US1 billion.
All three ports have faced severe port congestion since mid-June. Ships have been diverted due to Houthi attacks in the Red Sea region.
Vessels diverted toEither arrive later than planned or use that port as an alternative, resulting in serious queues at the port.
Due to its vast territory and geographical location close to the Strait of Malacca, SingaporeIt has become a hub for many shipping operations.This resulted in a large number of ships queuing up to enter the port.
For the Port of Singapore, about 90% of container ships did not arrive at the Singapore port as scheduled, which was higher than last year's average of 77%.
In addition, the stay time of ships in the port also increased by 22% compared with the same period last year. This is due to increased demand and container reloading, with the number of containers handled per ship call increasing.
Taking into account the port of discharge, weight and ship stability, some containers must be unloaded from the ship to make room for other containers and then loaded back on the ship.
These factors have greatly increased the waiting time for ships to berth. In order to avoid queuing, many shipping companies choose to berth at the nearby Malaysian ports of Port Klang and Port Tanjung Pelepas. Congestion has also occurred in these two ports.
In response to today's severe congestion, PSA Singapore has restarted the old berths and terminals that were once decommissioned at Keppel Terminal, and simultaneously increased investment in human resources.to deal with the urgent problem of container backlog.
It is reported that this move will allow the port to significantly increase the number of containers it can handle per week from the original 50,000 TEUs to 820,000 TEUs.
also,In order to further improve port operation efficiency,In addition to the existing eight berths, Tuas Port in Singapore also plans to add three more berths to be put into operation later this year to further expand processing capacity, ensure smooth port operations, and effectively alleviate the current congestion pressure.
The analysis period for these ports is from June 12 to August 12, with port congestion in mid-June being the most severe, and August being the earliest date when congestion is likely to ease.
Russell Company ALPS MarineFurther analysis shows that commodities such as crude oil (.3 billion) and integrated circuit boards ( billion) are most likely to be affected by port delays.
The trade volume of these ports is broken down as follows:
· Port Klang (USD 22.7 billion)
· Tanjung Pelepas Port (US.5 billion)
Suki Basi, Managing Director, Russell GroupCommented on the figures: “These figures published today by Russell Group show that port congestion is a problem that has re-emerged, causing concern for businesses and insurers.
Port congestion has previously been linked to COVID-19. This time, the fallout from the Red Sea attack has added to port congestion, with ships using alternate ports such as Singapore, Port Klang and Tanjung Pelepas to unload cargo, causing massive delays. "
He further noted that if this demand spreads to other ports, especially whenAs businesses start ordering for the upcoming fall holiday season,Businesses may have difficulty procuring goods.
Sea-Intelligence recently reported that despite strong demand and high freight rates, widespread port congestion has forced shipping companies to cancel sailings, resulting in a shortage of ship capacity.