Analysing Transit Time Delays Along Key Global Trade Routes

Transit times, a crucial metric for ensuring smooth operations, have been significantly impacted across key trade routes compared to last year.

Globally, there is an average increase of approximately 30% in transit times and around 20% increase in overall container journey times. 

Factors such as the ongoing Red Sea crisis, blank sailings, restrictions in the Panama Canal, adverse weather conditions and port congestion have all contributed to increased transit times.

Let’s understand how transit times have been affected over the past year across major global trade routes, focusing on Asia, North America, and Europe as key regions for loading and destinations.

Asia to Europe

Since the beginning of 2024, shipments originating from Asia (China, Korea and Japan) have experienced significantly increased transit times, primarily due to Houthi attacks on merchant vessels in the Red Sea.

Although carriers have adjusted their sailings and shippers have accounted for these disruptions, transit times from East Asia to Europe have risen by more than 22%, lengthening the journey. 

Asia to North America

A spike in transit times due to the Red Sea crisis was also observed along the major trade route from Asia to North America, with length of the journey peaking in January.

Although not as significant as the spike caused by the Red Sea crisis, journey lengths exceeded planned transit times in April due to delays at the ports of Shanghai, Ningbo and Busan. These delays resulted from port closures caused by dense fog, which led to severe berth congestion.

Additionally, the announcement in May of a US tariff hike on US$18bn worth of Chinese goods prompted a surge in shipping activities, intensifying congestion at key transit ports like Singapore.

In early June, port congestion in Singapore worsened as delays in ships returning to Asia after longer voyages around the African Cape and missed weekly sailings extended transit times for shipments using Singapore as a transshipment port.

As of June 2024, transit times have increased by 35% for this route compared to the same period last year.

North America to Europe

The collapse of the Francis Scott Key Bridge in March after it was struck by a container vessel disrupted vessel traffic at the Port of Baltimore. This incident necessitated diversions to nearby ports, contributing to delays in the region.

In addition, the rise in rail dwell times in the last two months at several major ports across North America, including the Ports of Los Angeles, Long Beach, Seattle, Charleston, Savannah, Houston, New York and Vancouver, has caused delays in intra-country cargo movements.

This situation has also affected the loading and unloading of containers onto and off ships due to a shortage of rail carriers, impacting the ocean transit times for shipments originating from North America.

Shipments from North America to Europe experienced a 26% increase in transit time, while those from North America to South America saw a 33% increase.

Transit times increase in other regions

African Ports: African ports experienced congestion due to increased vessel calls for bunkering services and rerouting necessitated by the Red Sea crisis. The surge in ship calls and the handling of larger vessels strained African ports, which were not fully equipped to manage the sudden influx. South African ports, particularly Durban Pier 2, experienced severe delays, with berthing times lagging 22-26 days behind schedule. Seasonal market demands further exacerbated transit time delays, reaching up to 45 days in April.

Middle East: In March, shipments originating from the Middle East experienced a sharp spike in transit times. This increase followed the Houthi missile attack on a merchant ship in the Gulf of Aden, which prompted retaliatory strikes by the US military. While the number of days reduced in subsequent months, transit times remained higher than average, reflecting ongoing disruptions along this route.

Oceania: In February, transit times of some routes between Asia and Oceania were significantly affected by cyclones Lincoln and Eleanor. Ports such as Pilbara Ports, Dampier and Ashburton, among others, were pre-emptively cleared ahead of the cyclones' landfall. Terminal closures ensued, lasting up to two weeks for recovery. This led to substantial delays, with waiting times reaching 8-10 days, thereby impacting overall transit times with an average delay of up to 13 days during that period.

Why transit time should be a point of focus

While this analysis provides a broad overview between continents, gaining insights into specific historical port-to-port performance based on your business' ports of loading and destination can be highly beneficial. Whether shipping via full container load (FCL) or less than container load (LCL), comprehending the patterns in transit times is essential for adhering to delivery schedules. 

Such detailed understanding of transit times to make better and more cost-effective booking decisions require reliable data on historical port-to-port performance, congestion, vessel speeds, lane analysis and carrier reliability. Real-time container tracking platforms can offer reliable transit time insights, turning shipping records into actionable intelligence.

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