Gulf Shipping Bottleneck: Ports Across Asia Face Increased Congestion

Shipping Congestion Mounts as Strait of Hormuz Remains Closed​

Singapore, March 26 – Merchant vessels, including oil tankers, are queuing up at ports across Asia as the ongoing conflict in the Gulf region continues to disrupt shipping lanes. A media report on Thursday highlighted increasing congestion and delays at major Asian ports, including Singapore.

Strait of Hormuz Crisis Fuels Shipping Disruptions​

The Strait of Hormuz, a strategically important waterway connecting the Persian Gulf to the Indian Ocean, remains effectively closed, halting the transit of hundreds of vessels daily. Following joint US and Israeli strikes against Iran and Iran’s retaliatory actions, the region has become a focal point of concern for global energy supplies.

Vessels Seek Anchorage in Key Ports​

Since February 28, a growing number of vessels bound for Gulf ports have opted to anchor at transshipment ports like Singapore and Malaysia’s Tanjung Pelepas and Klang. This decision reflects concerns about crew and asset safety. It takes approximately five to seven weeks for ships to travel between the Gulf region and Singapore.

Port Congestion Increases​

Supply-chain intelligence platform Portcast reports that the shipping disruption is causing longer queues, slower berth access, and delays at ports across Asia. As of March 25, the seven-day average of vessels waiting at anchorage in Singapore has risen to 30.3, compared to 20 before February 28. Busan in South Korea also experienced a significant increase, with the average reaching 12.9 compared to 5.4 previously.

Global Trade Impact​

The Gulf region accounts for approximately 13 per cent of global seaborne trade volume for chemicals, including fertilizers, 3 per cent of container shipments, and 2 per cent of dry bulk cargo. Prior to the conflict, 141 ships transited the Hormuz on February 28, with over 80 per cent destined for Asian ports. However, between February 28 and March 18, only 105 ships have passed through, a stark contrast to the 1,900 recorded during the same period in 2025.

Iranian Restrictions and Diversion of Trade​

Iranian Foreign Minister Seyed Abbas Araghchi announced that certain friendly nations – China, Russia, India, Iraq, and Pakistan – are permitted to transit the Strait of Hormuz. Ships linked to Iran’s adversaries will not be allowed passage. As mainline vessels avoid direct Gulf calls, shipments are likely to be discharged at regional relay hubs and transshipment ports.

PSA Singapore Offers Support​

The Port Authority of Singapore (PSA Singapore) stated it is closely monitoring the situation and offering bespoke solutions to affected cargo owners and supply chain stakeholders.