31 May 2024 (Lloyd's List) - PSA has reactivated older container berths and yards at the Keppel terminal, as part of efforts to help alleviate severe congestion at the port of Singapore.

The move comes as diversion of ships around the Cape of Good Hope due to attacks in the Red Sea disrupts schedules and causes vessel bunching.

Container volumes handled by the city state in January-April rose 8.8% year-on-year to 13.4m teu, according to the Maritime and Port Authority of Singapore. But off-schedule arrivals led to long wait times for berths, up to 2-3 days.

“The increased demand on container handling in Singapore is a result of several container lines discharging more containers in Singapore as they forgo subsequent voyages to catch up on their next schedules,” explained the MPA. “The number of containers handled per vessel has also increased.”

By reactivating older facilities, PSA boosted weekly handling capacity from 770,000 teu to 820,000 teu. The MPA noted the relevant government authorities have worked since late 2023 with PSA and shipping lines on arrival optimisation and berth planning.

It was also noted that three new berths opening later this year at Tuas Port will further expand capacity, and efforts will continue with the industry to minimize container delays.

However, no delays are currently seen for non-container traffic, which accounts for about two-thirds of vessel arrivals at the port.

Research firm Linerlytica noted earlier this week that box port congestion is now spreading throughout Asia. The situation is not expected to unwind any time soon, given the rising demand from the US and Europe, coupled with an early peak season.

With its transhipment hub status, congestion issues in Singapore have an outsized impact worldwide.

Linerlytica reported in its latest weekly update that berthing delays at the world’s second-largest container port were up to seven days, with the total capacity waiting to berth rising to 450,000 teu in recent days.

“The severe congestion has forced some carriers to omit their planned Singapore port calls, which will exacerbate the problem at downstream ports that will have to handle additional volumes.”

The delays had also resulted in vessel bunching that was causing spillover congestion and schedule disruptions elsewhere, said Linerlytica.