Port of Singapore Faces Increased Vessel Bunching Due to Global Supply Chain Disruptions

The diversion of vessels around the Cape of Good Hope has significantly disrupted vessel arrival schedules at major ports globally, causing off-schedule arrivals and a "vessels bunching" effect, according to the Maritime and Port Authority of Singapore (MPA).

This phenomenon has also impacted the Port of Singapore, one of the world's busiest ports, which has seen a "significant increase" in vessel arrivals since the beginning of 2024.

In response to media inquiries about the extended waiting times for berths in the Port of Singapore, MPA reported that container volumes handled in the first four months of 2024 reached 13.36 million twenty-foot equivalent units (TEUs), marking an 8.8% increase over the same period last year.

"For container vessels, we have observed large increases in container volumes and the 'bunching' of arrivals over recent months due to upstream supply chain disruptions," MPA stated.

The increased number of off-schedule container vessel arrivals and higher container volumes in Singapore have led to longer wait times for container berths. While most container vessels are berthed upon arrival, the port operator PSA has collaborated with liners to adjust arrival schedules where possible. When adjustments are not feasible, the average waiting time for container vessels is about two to three days.

The increased demand for container handling in Singapore results from several container lines discharging more containers in Singapore to catch up on their next schedules. Additionally, the number of containers handled per vessel has increased.

Besides the increased demands, container lines are leveraging PSA's cargo handling capabilities to manage container stowage onboard vessels and facilitate quick cargo discharge for subsequent port calls. This reliance on PSA highlights the confidence container liners have in the port.

Since late 2023, MPA, together with the Ministry of Transport (MOT), has been working with PSA and the industry to prepare for higher vessel arrivals. PSA has added more manpower and container handling capacity, reactivated older berths and yards at Keppel Terminal, and increased weekly container handling from 770,000 TEUs to 820,000 TEUs.

Three new berths at Tuas Port will commence operations later this year, increasing overall port handling capacity. PSA plans to expedite these new berths to boost container handling capacity in the near term.

MPA and PSA are closely coordinating with container lines and regional feeders to update them on berth availability and advise on arrival times to minimize berthing delays.

"There is no delayed berthing experienced for other vessels that call at Singapore, which constitutes about two-thirds of vessel arrivals," MPA stated. "Currently, there is no crowding in the anchorages."

MOT and MPA will continue to collaborate with PSA to optimize the port's capabilities and capacity to minimize berth wait times, including proactive planning with container lines on their arrival times versus berth availability.

Meanwhile, MPA noted that tanker and bulk vessel segments, including resupply and bunkering activities within the anchorages, remain unaffected.

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