The logjam that’s been plaguing Singapore’s container port is bringing forward this year’s peak season for the shipping sector, spelling trouble for businesses in the city-state.
The bunching up of container vessels outside one of the world’s busiest maritime trade hubs means there’s more cargo trapped in ports for longer. That’s pushing freight rates ever higher, with no immediate end to the congestion in sight.
A lack of immediate alternatives to Singapore in the region is making the logjam even worse. Nearby ports, such as Port Klang and Tanjung Pelepas in neighbouring Malaysia, aren’t easy substitutes because they aren’t as well-connected as Singapore, said Jayendu Krishna, a director at Drewry Maritime Services. So outbound cargoes may not be able to reach their destinations on time if they don’t leave from the city-state, he said.
Read more in an article from gCaptain.