Nearly eight months into the Strait of Hormuz disruption, the impact on ocean freight is easing. Weekly diversions from the Middle East and transshipment dwell at key ports are below peak levels for the conflict but remain elevated compared to pre-conflict levels, according to data released by project44.
Diversions from Middle East ports peaked in the week starting March 23 at about 8.4 times the pre-conflict weekly level, then fell through the summer. Over the last four weeks (Sept. 28-Oct. 25), diversions edged up from the previous four weeks, averaging about 2.4 times the pre-conflict level.
Key takeaways:
· Trans-shipment (TSP) dwell is the time containers wait at a port to be moved onto another vessel. Because trans-shipment ports connect to many onward routes, longer waits there can spread to later parts of a journey, which is why this measure is watched as an early sign of congestion.
· At six key ports, TSP dwell over the last four weeks is above its pre-conflict baseline. from 12% higher at Port Said to 59% higher at Hambantota and Mundra.
- Hambantota: 17.4 days vs. 11 (+59%)
- Mundra: 10.6 days vs. 6.7 (+59%)
- Colombo: 8.6 days vs. 5.8 (+49%)
- Salalah: 6.2 days vs. 4.7 (+33%)
- Singapore: 7.6 days vs. 6.4 (+20%)
- Port Said: 5.6 days vs. 5 (+12%)
· Export dwell is higher than the pre-conflict baseline at four ports.
