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Singapore Port Congestion at Post-Pandemic Highs
SINGAPORE/SINGAPORE, (Reuters) - Singapore's container port is experiencing its worst congestion since the COVID-19 pandemic, as the prolonged rerouting of ships to avoid attacks in the Red Sea disrupts global maritime transportation.
Retailers, manufacturers, and other industries are once again grappling with soaring freight rates, securing berths, and container shortages. This comes as many consumer-facing companies are already looking to build up inventories ahead of the year-end holiday season.
According to shipping data firm Linerlytica, global port congestion has reached its highest level in a year and a half, with 60% of ships waiting to berth located in Asia. As of mid-June, the total capacity of ships waiting to berth exceeded 2.4 million TEU (20-foot equivalent units).
However, unlike the pandemic-induced consumer stockpiling, the congestion is primarily caused by the rerouting of ships. Since November, Houthi rebels, a Yemeni pro-Iran armed group, have been attacking ships in the Red Sea, forcing vessels to take longer routes around the African continent, disrupting schedules and reducing port calls.
As a result, ships are now unloading large volumes of cargo at major transshipment hubs like Singapore and transferring them to other vessels for the final leg to their destination.
Jayendu Krishna, deputy managing director of Singapore-based consultancy Drewry Maritime Advisors, said that Singapore's average discharge volumes surged 22% from January to May, significantly impacting port productivity.
Severe Congestion
Singapore, the world's second-busiest container port, has experienced particularly severe congestion in recent weeks.
The Maritime and Port Authority of Singapore (MPA) reported in late May that the average waiting time for container ships to berth was 2-3 days. According to Linerlytica and other sources, the wait can extend up to a week. Typically, berthing takes less than a day.
Some ships are bypassing Singapore, causing nearby ports to pick up the slack. Linerlytica noted that Malaysia's Port Klang and Tanjung Pelepas ports are under strain, and waiting times are also lengthening at Chinese ports like Shanghai.