After numerous reports of mounting backlogs to unprecedented levels at Singapore’s container terminals, PSA which is the largest operator in the port reports it has reduced the delays to two days or less. The operator said this is despite continuing volatility and challenges resulting from ships diverting from their scheduled Red Sea routes and the fact that containerships are getting larger and currently experiencing very high utilization rates.
PSA Singapore says it has overall moved about seven percent more container volume in the first half of 2024 compared to 2023. However, it reports that vessel stays on berth are up 22 percent compared to 2023. Among the factors they cite are the high utilization rates for vessels and the fact that vessels have increased in size. The route includes the 24,000 TEU mega vessels that have been introduced over the past year. Ocean Network Express (ONE) for example highlighted five consecutive records set in just over three months late in 2023 and early 2024 with the highest at over 22,200 TEU loaded to one vessel.
Container rehandling, the process where boxes are taken from the ship and reloaded to rearrange stacks, increased by eight percent PSA reports during the first half of 2024. It has required the operator to optimize the stowage of containers while it also requires increased dock time and handling.
The Red Sea diversions have resulted in about 90 percent of containerships arriving off-schedule in Singapore compared to 77 percent in 2023. PSA further says ships are frequently arriving on the same day versus schedules that seek to space ships for maximum efficiency in handling.
While PSA says the delay is down, Linerlytica still shows that 28 vessels are waiting in the anchorage as of July 6. This, however, gives Singapore a much-improved queue-to-berth ratio of .57, less than half the ratio of the Shanghai/Ningbo port complex and below neighboring ports such as Hong Kong and Port Klang, Malaysia.
Reports earlier this week emphasized that Singapore’s delays have been spilling over to neighboring ports and along the routes. PSA acknowledges this while also saying problems upstream and downstream are contributing to the off-schedule arrivals. Port Klang's operator said today that while utilization is very high it is clearing waiting ships typically in 24 hours from the anchorage. DHL however is saying delays in the terminals are between two and five days due to high yard density.
PSA highlights in Singapore that it is working proactively with the Maritime & Port Authority of Singapore significantly ramping up its capabilities in 2024 to respond to the disruptions in service. Additional berths have been commissioned at the new Tuas Port, with PSA now operating nine and scheduled to add two more before the end of the year. Berths and yard space were also reactivated at the older Keppel Terminal. PSA says that it has hired nearly 1,500 frontline workers for the port and continues to hire for its facilities.
They note that as the various disruptions, including the Red Sea situation, are ongoing, the supply chain demand and impact remain volatile. They said they are committed to working with the authorities and customers to standards of service excellence, reliability, and efficiency as it continues to scale up operations.
