Recently, there is serious congestion in Singapore port, which has a considerable impact on global foreign trade transportation. As an important logistics hub in Asia, the congestion situation of Singapore port has attracted wide attention. Singapore is the world’s second-largest container port. Container ships are currently only in Singapore and may take up to about seven days to get berths, while ships can normally only take half a day. The industry believes that the recent bad weather conditions in Southeast Asia have exacerbated the port congestion in the region.
1. Analysis of congestion status in Singapore Port
As a world-renowned shipping center, a large number of ships come in and out every day. However, recently due to a variety of factors, the port serious congestion. On the one hand, the escalating Red Sea crisis bypasses around the Cape of Good Hope, disrupting the planning of major global ports, leaving many ships unable to arrive at the port, causing queues and a surge in container throughput, increasing port congestion, with an average of 72.4 million gross tons, over one million gross tons compared to the same period last year. In addition to container ships, the total tonnage of ships arriving in Singapore in the first four months of 2024, including bulk carriers and oil tankers, increased by 4.5 percent year on year to 1.04 billion gross tons. Part of the reason is that some shipping companies gave up their voyages to catch the next schedule, unloading southeast Asian goods in Singapore, extending more time.
2. The impact of Singapore port congestion on foreign trade and exports
Congestion in Singapore port has had a significant impact on foreign trade and exports. First, congestion has led to longer waiting times for ships and longer cargo transport cycles, increasing logistics costs for companies, which has led to a collective surge in global freight rates, currently from Asia to Europe at $6,200 per 40-foot container. Freight rates from Asia to the west coast of North America also climbed to $6,100. There are several uncertainties facing global supply chains, including geopolitical crises in the Red Sea and frequent extreme weather around the world that can cause shipping delays
3. Singapore Port’s strategy to deal with congestion
Port operator Singapore has said it has reopened its old berths and docks, and added manpower to ease the congestion. Following the new measures, POG said the number of containers available each week would increase from 770,000 TEU to 820,000.
The congestion in Singapore port has brought considerable challenges to global exports. In the face of this situation, enterprises and governments need to work together to take effective measures to alleviate the negative impact of congestion. At the same time, we also need to pay attention to similar problems that may occur in the future, and prepare for prevention and response in advance. For more advice, please contact jerry @ dgfengzy.com
Post time: Jun-08-2024
