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Navigating the Red Sea Crisis: How BlueSky Can Help You Mitigate Supply Chain Risks

The ongoing crisis in the Red Sea is having a significant impact on global supply chains, particularly for those of you heavily reliant on Asia-Europe trade routes. As your trusted advisors, BlueSky is committed to keeping you informed about the current situation and offering actionable solutions to mitigate risks.

Current Situation

Port congestion has reached critical levels, especially in Singapore, the world’s second-busiest container port. Linerlytica reports that containerships are facing wait times of up to seven days to berth, with approximately 450,000 TEU of vessels in the queue (Twenty-Foot Equivalent Units, a standard measure for cargo capacity). This congestion is further intensified by ships diverting from the Red Sea and skipping the less busy Port Klang in Malaysia.

Globally, port congestion has tied up 2 million TEU of ships, nearly 7% of the fleet, driving up carrier rates and disrupting supply chains. In Asia, ports account for a significant portion of global bottlenecks, with South-east Asia and north-eastern Asia making up 26% and 23% of congestion, respectively.

Impact on Your Operations

If your business relies heavily on China, you may already be feeling the effects:

  • Increased Freight Rates: Container freight rates have surged due to the congestion, with China’s container futures seeing price hikes.
  • Schedule Disruptions: Only a fraction of Asia-North Europe sailings are departing on time, causing significant market disruptions.
  • Extended Waiting Times: Ports in China, including Shanghai and Qingdao, are experiencing long delays, with ships waiting up to five days to berth.

Our Strategic Recommendations

At BlueSky, we have established alternative supply chains that can help you navigate these challenges. Take advantage of our established alternative supply chains that are less affected by the crisis, providing safer and more reliable shipping options.

Moving Forward

The Red Sea crisis underscores the importance of resilient supply chains. By diversifying your supply sources, utilising BlueSky’s alternative ports, and planning ahead, you can better navigate these turbulent times. We are here to support you with our expertise and network, ensuring your operations remain as smooth as possible.

For more information or to discuss your specific needs, please contact us directly.



Port congestion disrupts almost half Asia-Europe sailings – The Loadstar

Box ships omitting Singapore call as port congestion hits critical level – The Loadstar