In response to the unprecedented backlog at Singapore’s container terminals, PSA, the largest port operator in Singapore, has announced a significant reduction in delays, bringing them down to two days or less. This improvement comes despite continuing volatility and challenges, including ships diverting from their scheduled Red Sea routes and the increasing size and high utilization rates of containerships.
PSA Singapore reported a seven percent increase in container volume handled during the first half of 2024 compared to the same period in 2023. However, the operator noted that vessel stays on berth have increased by 22 percent over the same period. This is attributed to the high utilization rates of the vessels and the fact that the ships have become larger. The route now includes the 24,000 TEU mega vessels that have been introduced over the past year. Ocean Network Express (ONE) highlighted that it set five consecutive records in just over three months, late in 2023 and early 2024, with the highest record being over 22,200 TEU loaded onto a single vessel.
The process of container rehandling, where boxes are taken from the ship and reloaded to rearrange stacks, has increased by eight percent according to PSA. This process requires optimization of container stowage, increased dock time, and additional handling, further contributing to the operational challenges.
The Red Sea diversions have led to about 90 percent of containerships arriving off-schedule in Singapore, up from 77 percent in 2023. PSA noted that ships frequently arrive on the same day, rather than spaced out as per schedules designed to maximize efficiency in handling.
While PSA reports a reduction in delays, Linerlytica data as of July 6 indicates that 28 vessels are still waiting in the anchorage. This gives Singapore a much-improved queue-to-berth ratio of 0.57, which is less than half the ratio of the Shanghai/Ningbo port complex and below neighboring ports such as Hong Kong and Port Klang, Malaysia.
PSA Reports Improved Efficiency Amid Ongoing Challenges
Recent reports have highlighted that delays in Singapore are causing spillovers to neighboring ports and along the routes. PSA acknowledges this issue and points out that upstream and downstream problems are contributing to the off-schedule arrivals. Port Klang’s operator stated that while utilization is very high, it is clearing waiting ships typically within 24 hours from the anchorage. DHL, however, reported that delays in the terminals range from two to five days due to high yard density.
PSA emphasized its proactive approach in collaboration with the Maritime & Port Authority of Singapore, significantly ramping up capabilities in 2024 to respond to service disruptions. Additional berths have been commissioned at the new Tuas Port, with PSA now operating nine and planning to add two more before the end of the year. Berths and yard space were also reactivated at the older Keppel Terminal. PSA has hired nearly 1,500 frontline workers for the port and continues to recruit for its facilities.
PSA notes that various disruptions, including the situation in the Red Sea, are ongoing, contributing to volatile supply chain demand and impact. The operator is committed to working with authorities and customers to maintain standards of service excellence, reliability, and efficiency as it continues to scale up operations.
The recent improvements in handling times at Singapore’s container terminals highlight the port’s resilience and adaptability in the face of logistical challenges. However, the ongoing volatility in global shipping routes and the increasing complexity of managing larger vessels underscore the need for continuous adaptation and proactive measures to maintain efficiency and reliability in maritime operations.
