DISRUPTION in global supply chains through the knock-on effects of the Red Sea diversions is diminishing as supply and demand becomes more balanced and the initial bunching of services, which caused port congestion, has eased significantly, according to Drewry Shipping Consultants.

An early peak season in both the Asia to US and European trades saw shippers prepare for what was feared would be a repeat of the Covid congestion era disruptions.

�owever, massive newbuilding deliveries have eased the pressure, with a significant orderbook still in process, writes Greece's Container News.

"It is difficult to read whether the peak season has ended," said Drewry analyst Simon Heaney, "But the congestion issue is fading and the disruption is easing as up to 300,000 TEU of newbuilding entrants enter the market each month."

Mr Heaney acknowledged that not all the new capacity had entered the critical Asia/Europe trades, but he added that demand is softening and with the "combined contribution" of newbuilds there would be little hope of carriers stemming the slide on rates in key trades.

"The market is so volatile and unpredictable at the moment, but the underlying fundamentals would see rates continue to slide."

It is expected, however, that further disruption will take place, in what Mr Heaney said is an increasingly volatile market, which makes it harder to predict further unexpected or foreseeable events remains high.

One such event is likely to be the US East Coast strikes with talks between employers and unions having broken down, and the unions ready to strike on October 1 if no contract is agreed.

Mr Heaney pointed out: "Alternative terminals can be found in Canada and the USWC, but they will not be able to absorb all of the EC cargo, and there is a possibility that unions at these terminals will handle diverted cargo."

Should a prolonged dispute begin on the USEC it could lead to a shortage of empty containers in key regions, with congestion again spreading into other key trades.