Asia’s ports, including Singapore, are experiencing significant congestion due to shipping delays and increased freight rates.

Asia’s ports, including Singapore, are experiencing significant congestion due to shipping delays and increased freight rates.

Shipping delays in Singapore have more than doubled recently, potentially leading to increased consumer prices. This surge is attributed to a shortage of container ships and port congestion, hinting at an impending supply chain crisis.

PSA Singapore, the port operator, is actively collaborating with shipping lines to mitigate disruptions. They are communicating with vessels in advance regarding arrival times and volume information. PSA anticipates continued volatility and plans to enhance capacity and integrate smart technologies in their terminals.

The bottlenecks at Singapore are due to multiple factors, including diversions from unrest in the Red Sea and Chinese exporters hurrying to ship goods before trade curbs. The US announcement of higher tariffs on imports from China, especially on items like electric vehicles, batteries, and semiconductors, has further spurred this rush.

Chinese exporters, facing imminent trade restrictions, are scrambling to ship goods, leading to an 88% spike in average container prices in China in the last two months. This rush has caused heavy congestion at ports like Singapore, where berthing times have extended from one to two days to about seven days.

Singapore’s port has seen a significant increase in vessel arrivals, with the monthly average tonnage of container vessel arrivals rising by more than one million gross tonnage compared to last year. The overall vessel arrival tonnage in Singapore has also grown by 4.5% year-on-year.

Tan Hua Joo, a container shipping market analyst, noted that port congestion is at an all-time high, with limited spare capacity to accommodate the surge in volumes. This situation is causing delays in cargo movements, highlighting a shortage of ships and container equipment for exporting countries.

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Source: https://www.channelnewsasia.com/
Credits: Charlotte Lim, Nasyrah Abdul Rohim, Calvin Yang
Image Credits: https://www.maritimegateway.com/