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Singapore opens mega-port storage early to ease container bottlenecks

Singapore’s new mega-port is just months away from full operations, but it has opened its storage area early to help alleviate the supply chain bottlenecks plaguing container shipping. Congestion has caused ships to arrive late, resulting in logjams of containers in major ports around the globe. Ship arrivals at Singapore are now 7.5 days late, on average, after schedule reliability fell to an all-time low of 33.6% in August, although this has since improved to 40%. Schedule reliability issues were exacerbated by the Ever Given blocking the Suez Canal in March and Covid-19 ripple effects, among other things.

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Freight Futures Coming to Container Shipping

Can container freight futures offer an antidote for supply chain blues? The Baltic Exchange, which pioneered indexation and transacting of drybulk freight futures in the 1980s, has announced that trading on container freight futures will be launched on the Chicago Mercantile Exchange (CME) at the end of February, 2022. Futures trades on the CME will be settled according to individual route quotes provided by the Baltic (in conjunction with Freightos, a digital marketplace for booking land, air and sea freight). This is a BIG deal- trading of container freight moves out of the shadows (laden with confidentiality clauses) and into the public eye.