Peak season port congestion hits Singapore early, spills over to Malaysia due to Red Sea disruptions
The bustling Singapore port experienced an earlier peak season this year, with ships rerouting from the Red Sea in fear of Houthi attacks. The constant congestion has locked the container port of one of Asia's busiest shipping hubs in a jam.
Subsequently, the logjam has now spilled over to the neighboring country of Malaysia. This has, in turn, caused general delays in the movement of goods. While Malaysia's Port Klang has been witnessing an influx of vessels, reports indicate that the port has been successful at clearing the traffic quicker.
As per a recent press release by PSA Singapore, while new berths lowered the average wait time at the port of Singapore to two days, about 90% of container vessels arriving at the Singapore port are running off schedule at the moment, compared to an average of 77% in 2023. "Vessel port stays at PSA have also increased by 22% compared to the same period last year. Container re-handlings on mega vessels berthed at PSA have increased by 8% in the first half of 2024, compared to the previous year," the report said further.
After observing a pattern for months now, owing to disruptions in the Red Sea by Houthi militants, people are concerned that the congestion may lead to a surge in cost and decrease in demand, along with an eventual decline in economic growth.