Source: The Straits Times
Date: 26th March 2026 

Vessel rerouting and Gulf uncertainty drive port congestion, delays, and rising costs across Asia.

Shipping disruptions linked to the ongoing Middle East crisis are now extending beyond the region, with visible impacts emerging across major Asian ports. As vessel movements through the Strait of Hormuz remain severely restricted, global shipping networks are experiencing growing dislocation, leading to congestion and delays at key transhipment hubs.

Merchant vessels, including container ships, oil tankers, and bulk carriers, are increasingly rerouting or holding position while awaiting clarity on safety conditions in the Gulf. As a result, ports such as Singapore, Port Klang, Tanjung Pelepas, and Busan are seeing rising numbers of vessels at anchorage, reflecting early signs of a broader backlog forming across the region.

Recent data indicate a sharp increase in vessel queues at major Asian ports, with waiting times and berth delays becoming more pronounced. The disruption has been significant enough to alter vessel behaviour at scale, with ships choosing to delay entry into high-risk areas or cluster at alternative ports. Given typical transit times from the Gulf to Asia, the current congestion is expected to intensify in the coming weeks as more delayed vessels arrive.

The Strait of Hormuz, a critical global shipping corridor, normally handles a substantial share of global trade flows, including energy, chemicals, and containerised cargo. However, current conditions have significantly reduced vessel traffic, with safety concerns and direct incidents affecting ship movements. At the same time, sharply increased war-risk insurance premiums are adding further cost pressures to shipping operations.

These developments highlight the early stages of a wider supply chain disruption. As rerouting, congestion, and cost escalation continue, the ripple effects are expected to extend across global trade lanes, affecting transit reliability and supply chain planning.

The disruption is expected to have immediate and growing implications across supply chains. Shippers may face longer transit times, port congestion, and higher operational costs due to rerouting and delays. Importers could experience shipment delays, increased inventory holding requirements, and rising landed costs. Exporters may encounter scheduling uncertainties and potential disruptions to delivery commitments.

Businesses are advised to plan for extended lead times, monitor routing developments closely, and build flexibility into supply chain strategies, as congestion across Asian ports is likely to increase if the situation persists.