PSA Singapore (PSA), a major global transhipment hub, has made significant enhancements to its capabilities to address the increased activity and mitigate the impact of global supply chain disruptions since the beginning of 2024. These measures include reinforcing its frontline capacity, commissioning new berths at Tuas Port, and reactivating berths and yard space at Keppel Terminal. As a result of these efforts, the average wait time at the port has been reduced to two days or less in recent weeks.
The port has faced challenges due to strong berth demand and off-schedule vessel arrivals, leading to high concentrations of vessels arriving on certain days of the week and causing increased waiting times. This is despite maximizing all of PSA’s berths. Factors contributing to this situation include the Red Sea crisis, upstream and downstream port congestion, and port omissions by shipping lines, resulting in significant changes in vessel arrival patterns and call sizes.
Mr Ong Kim Pong, Group CEO of PSA International, emphasized PSA Singapore’s commitment to meeting these challenges and ensuring the port’s development and handling capacity align with customers’ needs. He also highlighted the impact of the Red Sea crisis on global shipping and trade, anticipating a prolonged period of challenging situations that could extend port congestion from Asia to Europe.
To address these issues, PSA is working on Node-to-Network initiatives in collaboration with like-minded customers and stakeholders to coordinate between upstream and downstream ports, aiming to improve shipping schedule reliability and overall network efficiency. The company is also focusing on expanding its port networks and port ecosystems to enhance cargo flows and grow its global presence.
The port has experienced a high percentage of off-schedule container vessels and increased vessel port stays, along with a rise in container re-handlings. This is attributed to higher demand and container re-handling activities required for vessel call optimization and safety at sea, especially for mega vessels taking the longer route around the Cape of Good Hope.
Despite these challenges, PSA’s proactive measures and close communications with shipping lines and stakeholders have mitigated the impact of the disruptions to a large extent, with strong support from the Maritime and Port Authority and the Ministry of Transport of Singapore. PSA will continue its efforts to assist shipping lines in navigating service disruptions and optimizing their network configurations to alleviate berth waiting times and mitigate the impact of ongoing disruptions.
PSA Singapore moved 7% more container volumes in the first half of 2024 compared to the same period last year. The company remains committed to pursuing long-term strategies, including enhancing capacity and capabilities through automation and smart technologies.
Looking ahead, PSA plans to expand Tuas Port further and continue hiring frontline workers across all its terminals to bolster its operations and address the evolving needs of the global supply chain.
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