Singapore Port Battles Congestion by Reopening Older Berths

Singapore Port Battles Congestion, Reopens Older Berths to Boost Capacity

Singapore, May 31, 2024 – The Port of Singapore, the world’s largest transshipment hub, is grappling with unprecedented congestion as container ships face berthing delays of up to seven days. According to analyst Linerlytica, the total capacity of vessels waiting at the port has surged to 450,000 TEU (twenty-foot equivalent units).

The Maritime and Port Authority of Singapore (MPA) attributes the congestion to the ongoing Red Sea crisis, which has forced ships to reroute via the Cape of Good Hope, resulting in off-schedule arrivals and “vessel bunching.” Additionally, Singapore has experienced a significant 8.8% increase in vessel arrivals, handling 13.36 million TEU in the first four months of 2024.

The MPA reports that many container lines are discharging more containers in Singapore and skipping subsequent voyages to catch up on their schedules. The number of containers handled per vessel has also increased, further straining the port’s capacity.

To address the congestion, the MPA and Singapore’s Ministry of Transport have been working closely with terminal operator PSA since late 2023. PSA has reactivated older berths and yards at Keppel Terminal, increasing the port’s weekly capacity from 770,000 TEU to 820,000 TEU.

Keppel Terminal, located near the city center, is gradually being phased out as operations shift to the new Tuas Port in the far west of the island. Three new berths are scheduled to open at Tuas Port later this year, and PSA plans to accelerate their completion to help increase overall container handling capacity in the near term.

The MPA and PSA are working closely with container lines and regional feeder services to provide updates on berth availability and advise them on optimal arrival times to minimize berthing delays.

As global supply chains continue to face disruptions, the Port of Singapore’s efforts to adapt and expand its capacity demonstrate the resilience and importance of this key transshipment hub in keeping international trade moving.