Congestion at Singapore's container port has reached its worst levels since the COVID-19 pandemic due to prolonged vessel re-routing to avoid Red Sea attacks. This disruption has caused bottlenecks in other Asian and European ports.

Retailers and manufacturers are now battling surging rates, port backups, and shortages of empty containers as they prepare for the peak year-end shopping season. Global port congestion has hit an 18-month high, with 60% of ships waiting at anchor in Asia, according to Linerlytica. Over 2.4 million twenty-foot equivalent units (TEUs) were waiting at anchorages as of mid-June.

Unlike during the pandemic, it is not consumer buying sprees swamping ports but disrupted ship timetables. Vessels are taking longer routes around Africa to avoid the Red Sea, where Yemen's Houthi group has been attacking shipping since November. As a result, ships offload larger amounts at transshipment hubs like Singapore to catch up on schedules.

The average wait time to berth a container ship in Singapore is now two to three days, with delays lasting up to a week. Neighboring ports in Malaysia and China are also experiencing backups.

Efforts to alleviate congestion include reopening older berths and adding new ones at Singapore's Tuas Port. Maersk, the world's second-largest container carrier, plans to skip two westbound sailings from China and South Korea in early July due to severe congestion.

Besides, concerns about possible strikes at U.S. ports and German port strikes are adding to the gridlock. Experts warn that these disruptions will likely mean higher prices for consumers.