3 factors causing prolonged congestion at Singapore’s port 

Global congestion raised container prices in Singapore by 26% since October.

Congestion at the Port of Singapore will persist through June and possibly beyond due to three key factors, including the country’s increased container throughput.

Data from Germany-based platform Container xChange showed that Singapore’s container throughput rose 8.8% YoY to 13.4 million twenty-foot equivalent units (TEUs) in the first four months of 2024.

The rise in throughput resulted in significant berthing delays of up to two to three days due to off-schedule arrivals, said Container xChange.

Vessel bunching due to disrupted global shipping schedules, which results in ships arriving in clusters and overwhelming terminal operations, is also expected to prolong congestion at Singapore’s port.

Off-schedule arrivals are also significantly exacerbating the congestion at the Port of Singapore.

In response to the congestion, Container xChange said several shipping lines, like Mediterranean Shipping Company (MSC), have started “omitting Singapore in favour of other regional ports.”

“MSC has diverted some transhipment operations to Indian ports, whilst carriers like OOCL are discharging Singapore-bound cargo at Port Klang in Malaysia. This shift is putting additional pressure on these alternative ports, exacerbating regional congestion and delays,” the platform reported.

Global congestion has pushed average container prices in Singapore up 26% from October 2023 to May 2024.

The average prices for 20 ft dry containers are also rising at a similar pace, from US$950 in September 2023 to US$1211 in the last week of May.

“The broader environment has a significant impact on the congestion at the Singapore port. Demand for cargo from China to the US and China to Europe has significantly increased over the last six months,” Container xChange said.

“The uptick in demand also affects box movement at the Singapore port, given that Singapore is a strategic transhipment hub crucial for the smooth and efficient functioning of global trade,” the platform added.