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Logistics
Sea Freight

On-time reliability continues to suffer under Red Sea situation

17 Jul 2024 - by Staff reporter
 Source: Depositphotos
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Overall global on-time performance of container ships dropped to 49.9 percent in June from 50.2 percent in May, the latest Schedule Reliability Report from Kuehne+Nagel (K+N) shows.

The Red Sea situation, port congestion and increased demand have kept reliability significantly below 2023 levels.

This trend may persist into the next months, the report says.

The drop in on-time performance reflects the ongoing challenges facing the global container shipping industry.

The Red Sea situation, where attacks on shipping by Houthis from Yemen have led carriers to divert away from the Suez Canal, has extended transit times and negatively impacted global shipping capacity.

Additionally, port congestion at key hubs and surging demand have further strained the system, preventing a return to more reliable service levels seen in 2023.

K+N warns that this trend of reduced on-time performance could continue in the coming months unless there is a resolution to the Red Sea conflict or a significant easing of port bottlenecks and demand pressures.

Shipping lines and logistics providers will need to closely monitor the situation and adapt their operations accordingly to minimise disruptions to global trade flows.

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