On February 28, the United States and Israel launched a series of military strikes against Iran that targeted nuclear infrastructure, missile sites, and the government’s leadership. Iran retaliated with strikes on 13 countries in the region, and the ongoing conflict has led to severe impacts on ocean shipping that will continue in the coming months.
The most immediate impact is in the Persian Gulf and the Gulf of Oman, as Iran has closed the Strait of Hormuz and threatened military action against vessels that risk transiting the waterway. The measure resulted in a decrease of around 80% of vessel traffic through the Strait, effectively halting exports and imports from ports on the Persian Gulf, such as the Port of Jebel Ali, United Arab Emirates.
Several major insurance companies are declining to cover vessels entering the region, and a number of carriers are rerouting vessels away from the region and the Red Sea around the Cape of Good Hope, including CMA CGM and A.P. Møller – Mærsk A/S. Other carriers, including Hapag-Lloyd AG, Mediterranean Shipping Company S.A. (MSC), Cosco Shipping Co., Ltd., Nippon Yusen KK, Kawasaki Kisen Kaisha Ltd., and Mitsui O.S.K. Lines, Ltd. ordered vessels not to enter the area and proceed to safer areas.
In the long-term, the diversion of vessels and re-routings will lead to significant strain on port facilities worldwide as vessels arrive off-schedule, offload cargo at ports of diversion, and spend an increased time transiting the Cape of Good Hope. Knock-on impacts of these disruptions are likely to persist for some months, with impacts in nearly every region of the world.
Regional Summaries
Africa
Ports in Africa saw a decrease in average waiting times on the whole; however, the number could increase in the coming weeks as the region grapples with an increase in vessel traffic diverting from the Persian Gulf, the Gulf of Oman, and the Red Sea.
The highest average wait times in the region were recorded at the Port of Beira, Mozambique, with average wait times at 22.4 days, according to Everstream Analytics.
The Port of Conakry, Guinea, is facing average wait times of 13.55 days and severe congestion at the port, according to Kuehne + Nagel.
In Morocco, the Port of Casablanca, is facing average wait times of 8.4 days, according to Kuehne + Nagel, and severe congestion in the port and yard areas.
The Port of Mombasa, Kenya, is facing average wait times of 5.8 days, according to Kuehne + Nagel, with equipment shortages and vessel bunching contributing to the heavy congestion.
The Port of Tema, Ghana, is grappling with crane outages and berth window delays that have led to an average wait time of 3.5 days at the port, according to Kuehne + Nagel.
Asia & Oceania
Ports in Asia & Oceania saw a slight uptick in overall congestion, but average wait times remained relatively low, with no port reporting more than 2 days of average wait times.
The highest wait times in the region were recorded at the Port of Shanghai, China, with Kuehne + Nagel reporting average wait times of 2 days and max wait times of 5 days. High yard density and weather-related risks may impact operations in the coming weeks.
The Port of Melbourne, Australia, is also facing average wait times of 2 days, according to Kuehne + Nagel.
Several ports in China reported average wait times of 1.8 days, according to Kuehne + Nagel, including the ports of Shekou, Qingdao, and Guangzhou.
The Port of Manila, Philippines, reported average wait times of 1.7 days, according to Everstream Analytics.
The Port of Tanjung Pelepas, Malaysia, reported average wait times of 1.6 days, according to data from Kuehne + Nagel, with crane installation and maintenance works contributing to the congestion.
Middle East & South Asia
Ports in the Middle East and South Asia experienced an overall increase in congestion levels, with wait times likely to increase in the coming days as a result of the ongoing conflict in the region.
The highest average wait times in the region were recorded at the Port of Bandar Abbas, Iran, with Everstream Analytics reporting average wait times of 2.9 days.
The Port of Chittagong, Bangladesh, is reporting average wait times of 2.4 days, according to Kuehne + Nagel, with slight congestion resulting from an operational slowdown attributed to the Ramadan holiday.
In Oman, the Port of Salalah, is experiencing average wait times of 2.4 days, according to Kuehne + Nagel.
The Port of Jebel Ali, United Arab Emirates, is reporting average wait times of 1.1 days, with a crane malfunction affecting productivity levels, according to Kuehne + Nagel.
Europe
On the whole, wait times remain largely positive at ports in Europe. Congestion could increase in the area as a result of vessel bunching and off-schedule arrivals as vessels divert from the area around the conflict in the Middle East.
Poland’s Port of Gdansk, is experiencing the highest average wait times of any port in the region, with average wait times at 2.7 days according to Kuehne + Nagel as a result of winter weather disruptions.
The Port of Valencia, Spain, is experiencing average wait times of 2.6 days, according to Kuehne + Nagel, with elevated yard density.
The Port of Le Havre, France, is experiencing average wait times of 1.8 days, according to Kuehne + Nagel, with recent weather disruptions causing the elevated wait times.
In the United Kingdom, the ports of Felixstowe and Southampton, are both facing average wait times of 1.7 days, according to Kuehne + Nagel.
The Port of Dublin, Ireland, is experiencing average wait times of 1.7 days, according to Kuehne + Nagel.
While wait times have slightly recovered at the Port of Hamburg, Germany, Kuehne + Nagel is still reporting average wait times of 1.6 days at the port amidst winter ice conditions and labor constraints.
Americas
Average wait times for ports in North America remained positive on the whole. The highest average wait time in the region was recorded at the Port of Lazaro Cardenas, Mexico, with average wait times standing at 1.9 days, according to Kuehne + Nagel.
The Port of Houston, United States, is facing average wait times of 1.8 days, according to Kuehne + Nagel, with Hapag-Lloyd reporting that one crane is currently out of service at the port.
The Port of Vancouver, Canada, is facing average wait times of 1.6 days, according to Kuehne + Nagel, with high average rail dwell times and high yard density.
In South America, average wait times were slightly more elevated on the whole than in North America. The highest average wait time in the region was recorded at the Port of Antofagasta, Chile, with average wait times at 5.6 days, according to data from Everstream Analytics.
The Port of Buenaventura, Colombia, is facing average wait times of 5.5 days, according to Everstream Analytics, while Hapag-Lloyd reports high yard utilization.
In Brazil, the Port of Paranaguá is facing average wait times of 2.4 days, while the Port of Santos is facing average wait times of 3 days, according to Everstream Analytics, and the Port of Navegantes is facing average wait times of 2.5 days, according to Kuehne + Nagel.
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