Since early 2024, PSA Singapore (PSA) has significantly enhanced its operational capacities to handle increased activity and alleviate the effects of global supply chain disruptions.
The initiatives include strengthening frontline capabilities, launching new berths at Singapore’s Tuas Port, and reactivating berths and yard space at Keppel Terminal. As a result, the average port wait times have recently decreased to two days or less.
Despite ongoing disruptions, such as the situation in the Red Sea, which continue to affect supply chain dynamics, PSA is collaborating with its clients to find effective solutions during these uncertain times.
Throughout the year, PSA has faced high demand for berths and irregular vessel arrivals, leading to concentrated vessel influxes on specific days of the week. This has resulted in significant increases in wait times, even with full utilization of PSA’s berths. Larger vessel calls have required extended stays and longer container transhipment times.
These challenges are due to several factors, including the indirect reduction of global shipping capacity due to the Red Sea situation, congestion at upstream and downstream ports, and strategic adjustments by shipping lines to regain schedule integrity, causing substantial shifts in vessel arrival patterns and call sizes.
“As the flagship project for the Group, PSA Singapore remains committed to meeting the challenges of ongoing volatility and ensuring the port’s development and handling capacity align with our customers’ needs,” said Ong Kim Pong, Group CEO of PSA International.
He added, “The Red Sea crisis has significantly disrupted global shipping and trade, and we anticipate this challenging situation to persist for a prolonged period, potentially extending port congestion from Asia to Europe. PSA is building partnerships with like-minded customers and stakeholders on a series of Node-to-Network initiatives to better coordinate between upstream and downstream ports, enhancing shipping schedule reliability and overall network efficiency.”
Ong Kim Pong continued, “At the same time, we are also constantly seeking to expand our network of port facilities and ecosystems to grow our global presence in locations that can add value and enhance cargo flows. By leveraging our port facilities, supply chain capabilities, and especially our people, we remain committed to enhancing collaboration with our customers to address their needs amidst the ever-changing global landscape.”
In 2024, the port of Singapore saw approximately 90% of container vessels arriving off-schedule, a notable increase from around 77% in 2023. Concurrently, vessel port stays at PSA have risen by 22% compared to the same period last year.
This escalation is attributed to handling more containers per vessel call due to increased demand and container re-handling practices. This process involves unloading containers from the vessel to accommodate others based on factors such as port of discharge, weight considerations, and vessel stability, followed by reloading these containers back onto the vessel.
During the first half of 2024, container re-handlings on mega vessels berthed at PSA increased by 8% compared to the previous year. This increase reflects the heightened vessel utilization resulting from the Red Sea situation, prompting shipping lines to use PSA more extensively to optimize container stowage and ensure maritime safety, particularly as mega vessels increasingly opt for the longer route around the Cape of Good Hope.
These operational adjustments have extended vessel port stays and are expected to impact the berthing schedules for incoming vessels, despite PSA’s ongoing efforts to maintain productivity levels.
Despite these challenges, PSA’s proactive measures and effective communication with shipping lines and various stakeholders have significantly mitigated the impact of disruptions. The PSA Singapore management team has worked closely with the Unions, receiving strong support from the Maritime and Port Authority and the Ministry of Transport of Singapore, ensuring the port ecosystem operates smoothly.
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