Southeast Asia port bottlenecks are limiting trade growth, says Elaine Low, the Danish shipping group Maersk’s Area Managing Director for Southeast Asia.
In a Freight Buyers’ Club interview published on 6 October, Low points to weak infrastructure on land at smaller ports, particularly in Indonesia and the Philippines.
“Every single port in Southeast Asia is full,” Low tells The Freight Buyers’ Club.
Demand is growing as companies expand production across Asia and consumers buy more goods. Low highlights cars, electric vehicles, electronics and the semiconductor supply chain.
Smaller ports face pressure
However, infrastructure at many smaller ports cannot handle the rising demand, according to Low.
Larger ships alone will not solve the problem. Many smaller ports rely on barges and feeder vessels, which carry cargo to major hubs.
These include Singapore and Tanjung Pelepas in Malaysia, a key Maersk hub.
Low says the challenge lies in improving connections through smaller ports as trade within Asia continues to grow.
Source: The Freight Buyers’ Club
