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Singapore congestion surge prompts carriers to expand container fleets

Posted on June 3, 2024 |

Singapore's port congestion is worsening the container market, which was already strained by equipment and vessel shortages due to Red Sea diversions.

The global port congestion has reached 2 million TEU, or 6.8% of the global fleet, with Singapore now a major congestion hotspot.

The Shanghai Containerized Freight Index (SCFI) rose 42% last month, with further increases expected in June due to new surcharges and rate hikes.

Carriers are obtaining new equipment and extending vessel charters beyond September, despite concerns about post-summer demand.

Ships are returning to Asia off-schedule due to longer routes around the African Cape, causing renewed congestion in container supply chains.

Singapore is experiencing berthing delays of up to seven days, with 450,000 TEU waiting to berth, forcing some carriers to skip planned port calls.

The congestion in Singapore is causing downstream ports to handle more volume, complicating the overall supply chain.

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