Singapore Port Experiences Severe Congestion Due to Red Sea Avoidance

The Port of Singapore, one of the busiest ports in the world, is currently facing a significant challenge due to congestion. This was reported by Bloomberg on Thursday (13/06/2024). The congestion has been caused by ships avoiding the Red Sea, which has led to a surge in traffic in the Asian maritime centre and its surrounding areas. 

The attacks carried out by the Houthis further complicated the situation, prompting ship owners to avoid the Suez Canal and take a longer route around southern Africa. This resulted in a lack of refueling and unloading opportunities at Middle Eastern ports, which in turn contributed to the congestion of sea lanes in the waters off Singapore.  

Hong Kong-based market intelligence company Linerlytica has estimated that there are 450,000 TEU in the shipping queue. Another report puts the total container backlog until June 17, 2024, at 480,000 TEU. Currently, container ships are experiencing extended waiting times of up to seven days for loading and unloading, compared to half a day under normal conditions. 

Linerlytica reports that rising congestion at ports is causing delays in the delivery of goods. Shipping companies are forced to extend charter periods, with every available vessel pressed into service. 

 

Linerlytica also provides an overview of the interrelated issues causing the latest congestion. Their analysis shows that Southeast Asia is the worst congested region, with more than a quarter of vessels (26%) affected, followed by Northeast Asia at 23%.    

Globally, Linerlytica estimates that 2 million TEU of vessel capacity, or 7% of the global fleet, is stuck in congestion today. Growing congestion in Singapore is also causing ships to be forced to wait outside berths and further from the port.  

 

Shipping operators trying to manage longer transit times and growing delays are also opting to bypass less busy ports such as Port Klang, Malaysia which means containers are piling up or being diverted to ports like Singapore which are then burdened by increased volumes. Increased congestion has also led to vessel backlogs at several points along the route. 

 

Along with the increased pressure, this has also had an effect on the sudden increase in shipping costs. Some reports have warned that prices will return to pandemic levels as a new wave of port congestion moves through the market segment.   

source: 

https://maritime-executive.com/article/report-singapore-port-congestion-mounts-as-ships-divert-from-red-sea  
https://www.kabarbursa.com/headline/serangan-houti-di-laut-merah-pelabuhan-singapura-mecet   
https://www.idxchannel.com/economics/pelabuhan-singapura-macet-parah-imbas-krisis-laut-merah 
https://news.cgtn.com/news/2024-06-17/VHJhbnNjcmlwdDc5MzM1/index.html