11 July 2024 (Lloyd's List) - CONGESTION at Singapore, the world’s largest transshipment hub, appears to have eased somewhat, as port operator PSA claims average waiting times have reduced to two days.
In a statement, PSA said it “has significantly ramped up capacities since early 2023 to support increased volumes and mitigate global supply chain disruptions.”
In late May, Linerlytica had described Singapore as a “congestion hotspot” amid fallout from the Red Sea crisis, estimating berthing delays reached 7 days.
In a report this week, the research firm said the congestion has declined although delays remain around 3 days, versus 5 days at nearby Port Klang in Malaysia.
It also noted worsening situations at major upstream gateway ports in China over the past week, with waiting times up to 4 days in Shanghai and 2 days in Ningbo due to vessel bunching.
This highlights the massive logistics impact from ships avoiding the Suez Canal is far from over, with congestion also hitting North American and European ports and showing few signs of abating.
“The Red Sea crisis has significantly disrupted shipping and we expect these challenges to persist long-term, potentially extending port congestion from Asia to Europe,” said PSA International Group chief executive Ong Kim Pong.
PSA has been ramping up efforts to improve the snarl-up in Singapore, including reactivating older container berths and yards at Keppel terminal. It has also hired nearly 1,500 frontline staff this year alone to boost capabilities and capacity, according to the statement.
The company reported that about 90% of container vessels arriving at Singapore's port have been off-schedule this year, up from the average of 77% in 2023, underscoring the extent of disruptions. Additionally, the duration of vessel port stays at PSA has increased by 22% year-on-year.
This increase was attributed to the handling of more containers per vessel call due to higher demand and container re-handling.
PSA said some containers are unloaded to make room for others based on the port of discharge, weight, and vessel stability considerations. These unloaded boxes are subsequently reloaded onto the vessel.
Container re-handlings on mega vessels berthed at PSA have risen by 8% in the first half of 2024 compared to the previous year, the operator added.
