Boxports struggle as vessel bunching approaches covid levels

Container ports are experiencing chaotic schedules not seen since the days of covid. 

Vessel bunching, where multiple vessels sail on the same week on the same service, has increased sharply this year, according to a new report from Danish consultancy Sea-Intelligence. On Asia-Europe in particular, this is essentially back to the same level as during the pandemic thanks to the ongoing Red Sea shipping crisis.

Schedule delays can lead to the issue of vessel bunching. 

According to Sea-Intelligence, vessel bunching is when a carrier has multiple vessels departing on the same service, within the same week. 

Higher vessel bunching creates larger pressure on ports and terminals and can lead to congestion at port and subsequently a crunch on the use of truck, rail, and barge capacity. 

Sea-Intelligence warned yesterday that there was no indication that the pressure on ports is about to be alleviated. 

Liner shipping has had to face supply chain kinks on an unprecedented scale – bar the covid era – during 2024.

The Houthis of Yemen have largely cut off container shipping from transiting the Suez Canal leading to a mass rerouting of boxships around the Cape of Good Hope. This soaking up of tonnage has inevitably brought vessel bunching and spikes in congestion around the world, not helped by plenty of strike action from supply chain workers. 

Singapore’s port, for instance, has seen about 90% of container vessels arriving off-schedule, compared to an average of about 77% in 2023. In addition, vessel port stays at PSA have also increased by 22% compared to the same period last year. 

Top management at PSA Singapore has had to pull many levers to ensure its role in global trade remains well-oiled and smooth. 

Back in May, to staunch the severe congestion building, PSA Singapore reactivated older berths and yards that have previously been decanted at Keppel Terminal, while also adding significant manpower to battle the box build-up.