Container volumes at Singapore port hit record high in March, up 2.3% on year

Singapore — Container volumes at Singapore port hit a record high of 3.3 million twenty-foot-equivalent units in March, up 2.3% year on year.

The increase in volumes can be attributed to a pick-up in trade activity as coronavirus-related challenges start to ease.

"At this time last year, the restrictions were at a peak and there was minimal trade happening," a source based in Singapore said.

Congestion issues at the port also seem to be easing, with the waiting time for vessels coming down from last month.

According to data from S&P Global Platts trade flow software cFlow, the number of vessels staying at the port for more than two days fell to 49 in March, from 52 in February.

"In a normal situation, the average waiting time for Singapore port was around five to six hours, but now ships have to wait for two to three days due to severe congestion at the port," a source based in Hong Kong said.

A major cause of the congestion at Singapore is the roll over of a significant number of cargoes from Port Klang and Colombo into Singapore after several lockdowns were imposed last year and the supply chain was disrupted, the source said.

Another source estimated a wait time of around five to six days in some cases.

According to the Port of Singapore Authority (PSA), an unprecedented and volatile surge in cargo demand, congestion across all nodes in the global supply chain (including depots, warehouses and seaports) due to renewed lockdowns, a lack of usable empty containers while laden ones are held up longer at these nodes, and the reliability of shipping lines' vessel sailing schedules dropping to 10-year lows have caused delays at almost every seaport worldwide.

However, Singapore has been deploying additional resources and ramping up its capabilities to support the increased activity, the port authority said.

To ensure quicker movement and to manage the rising operational costs, Singapore port has announced an increase in port charges, albeit in two phases.

In Phase I, which will take effect from January 2022, port charges will rise by around 6% for cargo and passenger ships that stay between two and four days in Singapore for loading or unloading.

Phase 2 will take effect from January 2023 when port dues rates, or charters, will also increase for ships that stay in port for a day or less for not only loading or unloading cargoes and passengers but also taking bunkers or supplies and crew changes.