Container ships surge at Singapore port, many parties take measures to reduce congestion
Since May this year, there has been a surge in the number of container ships waiting to dock in Singapore for loading and unloading, causing congestion in the port of Singapore. Maritime and Port Authority of Singapore recently said that this is mainly due to the Red Sea crisis, resulting in a large number of ships rerouted to the Cape of Good Hope, disrupting the arrival of ships in major ports around the world timetable, resulting in a 'ship aggregation' effect.
The Maritime and Port Authority of Singapore (MPA) also said that there has been a significant increase in vessel arrivals in Singapore since the beginning of 2024. The replenishment and refueling activities of tankers and bulk carriers take place within the berths and are not affected. For container ships, the number of containers has increased significantly in the previous months due to supply chain disruptions in the upstream region, with container ships arriving in 'clusters'. The increase in demand for container handling in Singapore was due to several large container lines abandoning subsequent voyages in order to catch up with their next schedule and unloading more containers in Singapore. In addition, the number of containers handled per vessel has also increased.
The data shows that the volume of containers handled by Singapore in the first five months of 2024 amounted to 16.9 million TEUs. Compared to the same period last year, containerized cargo volume increased by 7.7%. The increase in overdue arrivals of container ships and the increase in the volume of containers handled by Singapore has resulted in ships waiting longer for container berths.
In order to ease congestion at the port, the Port of Singapore Group said it has increased manpower and container handling capacity and reactivated old berths and docks at Keppel Terminal in Singapore that had previously been decommissioned. The number of containers that can be handled per week has increased from 770,000 TEUs to 820,000 TEUs with the new measures. In addition, three new berths will be commissioned later this year to increase the port's overall handling capacity, in addition to the eight existing berths at Tuas Port.
In the meantime, the Maritime and Port Authority of Singapore (MPA) and the Port of Singapore Group (PSG) are working closely with container shipping lines and regional feeder shipping lines to provide them with the latest berth situation and advice on arrival times to minimize delays.
PIL is the 12th largest container shipping line in the world and the largest in Southeast Asia itself. PIL's Executive Chairman, Mr. Teo Siong Seng, said that globally, many ports are currently congested due to geopolitics, operational constraints, weather factors, etc., and Singapore, because it is at the crossroads of East and West, has experienced vessel delays due to congestion. Currently, PIL is working closely with the Singapore Ports and Harbors Group (SPHG) to deal with port congestion. PIL is also adjusting its own vessel arrival schedules to minimize the time spent in Singapore ports. He believes that with the concerted efforts of all stakeholders in Singapore, the congestion is gradually easing.
In order to ensure the smooth operation of shipping in Singapore, the Singapore government and shipping companies are also committed to the cultivation of maritime talents. On June 7, the PIL Logistics Academy was set up to provide systematic training for more than 8,000 employees to enhance their maritime vocational skills. Singapore's Minister for Transport and Second Minister for Finance Xu Fangda said at the inauguration ceremony of the Pacific Shipping Academy that the Red Sea crisis has led to many ports around the world where cargo ships must queue up to enter the harbor. Since the beginning of this year, the number of ship arrivals, container handling and berthing needs in Singapore ports have increased significantly, with many ships turning to Singapore ports after experiencing delays elsewhere.
Xu Fangda said that the current global shipping industry is facing new challenges such as digitization and decarbonization, Singapore Maritime must continue to upgrade and retrain its workforce to ensure that employees can keep up with the times and remain competitive. Singapore is working to utilize a strong tripartite partnership between the government, practitioners and trade unions to make Singapore a global hub for maritime talent development. The establishment of the Pacific Islands Shipping Academy is also an important step towards Singapore Maritime's goal of developing the workforce of the future.
The congestion in Singapore's ports will gradually improve as all parties in Singapore work closely together to further expand Singapore's container handling capacity, increase berths and adjust vessel arrival times.
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