Weekly Supply Chain Update: 6

Severe Congestion at Singapore's Transshipment Hub

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To address severe congestion at Singapore's container transshipment hub, PSA has reactivated older berths at Keppel Terminal and increased manpower. Linerlytica reported that berthing delays at the port have reached up to seven days, with over 500,000 TEU waiting. This congestion, along with the closure of the Suez Canal and early peak season, has pushed freight rates to near-record highs. The Maritime and Port Authority of Singapore noted increased container handling as lines discharge more containers to catch up on schedules. PSA plans to open three new berths at Tuas Port later this year to boost capacity. Meanwhile, MSC is using Indian ports due to congestion in Singapore and Colombo. Analysts warn that freight rates may continue to rise before the situation improves.

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Chinese Firms to Develop $600 Million Deepsea Port in Anaklia, Georgia Amid Growing Trade Demands

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Two Chinese firms have secured the rights to build and operate a deepsea port on the Black Sea in Anaklia, Georgia. The initial phase involves constructing a berth capable of handling 7 million tons of cargo and a 600,000 TEU container terminal, with a total investment of $600 million. The Georgian government will hold a 51% controlling stake in the port. Anaklia, a seaside resort town in western Georgia's Samegrelo-Zemo Svaneti region, is strategically located where the Enguri River meets the Black Sea. This new development comes as Georgia’s top two existing ports, Batumi and Poti, are nearing capacity due to increasing trade from China to Europe.

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Deutsche Bahn Shortlists Final Bidders for Schenker Sale

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Deutsche Bahn has shortlisted Maersk, DSV, Bahri, and a consortium including CVC, ADIA, and GIC for the final round of the sale process for its logistics subsidiary Schenker, sources told Reuters. Final bids are expected in July. Deutsche Bahn's spokesperson confirmed the selection, stating the bidders will make binding offers in the coming weeks. Bids have reached up to 15 billion euros ($16.21 billion), with proceeds aiding in reducing Deutsche Bahn's 34 billion euros debt. The sale is anticipated to be completed in 2025. Schenker employs over 70,000 people globally, including 15,000 in Germany.

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Drewry Multipurpose Time Charter Index Rises to $9,094 per Day, Exceeding Forecasts for May

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The Drewry Multipurpose Time Charter Index tracks one-year period charter rates for various vessel types and sizes, including breakbulk and project cargo ships, forecasting market movements for the coming month. For May, the index exceeded the forecasted value of $9,054 per day, reaching $9,094 per day. Larger MPVs saw rate increases, while smaller vessels remained stable. Drewry's latest assessment, including the June forecast, predicts a 0.5% rise in the index to $9,136 per day, which is 2.5% higher than in June 2023. The index is a weighted average of day rates for three vessel size bands: 5-7.5k dwt, 10-15k dwt, and 15-20k dwt.

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China's Container Throughput Rises 9% in First Four Months of 2024 Amid Foreign Trade Expansion

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China's container throughput at its ports increased by 9 percent year-on-year in the first four months of this year, driven by the expansion of foreign trade, according to official data. The Ministry of Transport reported that 104.03 million twenty-foot equivalent units (TEUs) of containers were handled during this period. Cargo throughput at China's ports totaled 5.55 billion tonnes, a 5.2 percent increase year-on-year. Foreign trade cargo throughput specifically rose by 9.1 percent compared to the same period last year. Additionally, China’s total goods imports and exports grew by 5.7 percent in yuan terms during the first four months, up from 5 percent in the first quarter.