Amidst the Chaos: How the Port of Singapore Handles Global Shipping Disruptions

Here are a few interesting facts about the Port of Singapore: 

• The Port of Singapore is the second busiest port globally, representing 20% of global shipping containers
• The Port of Singapore set a record in 2023 after handling 39.01 million TEUs (4,6%+ YoY). It is predicted that by  2040, the port will have an annual capacity of 65 million TEUs
• The port handles 50% of the global crude oil supply
• Due to Singapore’s lack of natural resources, the Port of Singapore is essential for importing raw materials and exporting refined products
• Located on the southern end of the Malay Peninsula, it connects over 600 ports in 123 countries
• Common ports of call before arriving in Singapore listed chronologically: Hekou (China), Port Klang (Malaysia), Tanjung Bin / Port Tanjung Pelepas (Malaysia), Laem Chabang (Thailand), and Nansha Port (China)
• It is the major route for ships between the Indian and Pacific Oceans and the largest bunkering port worldwide

Global port congestion has reached its highest level since the COVID-19 pandemic, with significant bottlenecks in Asian and European ports, including Singapore. The provided graphs below, are based on data from Windward’s compliance platform over the past two years up to June 1, 2024. They clearly show the congestion at the Port of Singapore and indicate a decrease in port calls and an increase in the duration of each port call.

The first graph shows a 36% decrease in monthly port calls, dropping from 1,590 to 1,020. The second graph shows that the average port call duration has increased from around 21 hours (from a year ago) to 27 hours, a 28.57% increase. 

As highlighted in our global port insights reports, shipping cargo to and from East Asia has become more time-consuming due to vessels needing to divert from the Red Sea. Initial analyses during the onset of the Houthi attacks estimated that this deviation could add 10-14 days to the journey. Our recent research focusing on voyages to the Port of Singapore provides a more detailed view.

The graphs below illustrate the average transit times (in days) to Singapore from the U.S. East Coast ports, Mediterranean, and European ports over various periods. The data reveals a significant increase in transit times to the Asian port from all of the above regions, showing the direct impact of the Houthi attacks.

African ports have emerged as alternative transshipment hubs due to the Houthi attacks in the Red Sea. There have been relatively minor fluctuations in transit times compared to cargo routes continuing to the North Atlantic Ocean and the Mediterranean Sea. The only region where we observed a slight worsening in transit times is West Africa. This area, which includes emerging new ports such as Tanger Med (Morocco), experienced an increase in port congestion and transit times. During the month of April, shipments from West Africa to the Port of Singapore took approximately 28 days. The situation has since stabilized, and transit times to Singapore are now only slightly higher than last year.

The reported congestion at the Port of Singapore, exacerbated by the Red Sea crisis, continues to have ripple effects on neighboring ports throughout Southeast Asia, despite the fact that these routes do not pass through the Red Sea. 

The graphs below analyze the transit times to Singapore from China, India, Oceania, and East Asia ports. In all instances, Windward’s analysis shows a peak in transit times during May 2024. For journeys from Chinese ports, the peak was approximately 6.73 days, while for journeys from Indian ports, the peak was around 8.24 days. When examining the broader Oceania region, the peak transit time reached 10.16 days. Similarly, for East Asian ports, the peak transit time reached 4.06 days. The latest data indicates a decline in these transit times, suggesting that the congestion and delays experienced in May 2024 have started to subside. The current journey times have decreased to 5.56 days from Chinese ports, 7.24 days from Indian ports, 8.56 days from Oceania ports, and 3.46 days from East Asia ports, indicating a positive trend toward normalization.

The ongoing challenges faced by the Port of Singapore, intensified by geopolitical tensions in the Red Sea, highlight the complex dynamics of global shipping networks. As a critical hub in Southeast Asia, the port’s congestion disrupts its operations and impacts neighboring ports across the region. These changes in transit times, which peaked during May 2024, may also be linked to the reported port congestion for vessels entering different terminals. 

Windward’s analysis reveals a peak in delays during May, particularly for shipments from China and India. This demonstrates the extent of the disruptions even on trade routes untouched by the Houthis. Recent data shows a positive trend towards normalization, with reduced transit times indicating a gradual easing of congestion.

For a more comprehensive analysis of specific ports and regions, Windward-as-a-Service offers tailored insights to help stakeholders navigate these complex issues.