Amid recurring disruptions to global supply chains from geopolitical hot spots around the world, Singapore and its regional counterparts have been actively trying to find innovative ways to maintain an uninterrupted movement of goods.
Among the initiatives is an app that may boost Singapore’s shipping and logistics sectors – by improving efficiency and helping to cut costs, while also eliminating uncertainty.
Still being developed, it will not only help local shippers and logistics providers plan cargo routes across different modes of transportation, but also aid them in contingency planning should unforeseen events crop up.
Described as an “inter-modal control tower”, the prototype platform was announced by Transport Minister, Chee Hong Tat on July 30.
He described the initiative as a way for the Government and industry stakeholders to “work together to further enhance Singapore’s value proposition as a global supply chain hub”.
The app will bring together critical information and decision-making tools onto a centralised platform.
This will give users access to real-time data on flight and vessel schedules, help with bookings, as well as live tracking of the cargo’s status across each stage of its journey.
A key feature is the app’s ability to provide early notifications to users about potential delays, thereby giving them sufficient leeway to respond to these unforeseen circumstances.
Ultimately, this is expected to significantly reduce costs and uncertainties associated with having to transport goods by land, sea or air.
At present, shippers and logistics providers face a longstanding challenge of such information residing across separate channels.
Smaller companies find this tough as they are more likely to rely on manual processes to gather such information.
“This information asymmetry generates inefficiencies and suboptimal outcomes, which may also incur additional time and costs,” Mr. Chee said.
Among the entities involved in this project are leading global logistics players such as DB Schenker and Cargo Community Network, as well as Singapore’s PSA, Sats, Singapore Airlines Cargo and the Singapore Aircargo Agents Association.
Mr. Chee was speaking at the 16th Asean and Asia Forum organised by the Singapore Institute of International Affairs, a think-tank that focuses on international relations.
He said in his keynote address that “we are at a time of great uncertainty” because of the escalating trade war between the US and China, as well as the Russia-Ukraine and Israel-Hamas conflicts.
He added that each of these developments has had a profound impact on global supply chains.
Being a small country with an open economy has meant that “Singapore is particularly vulnerable to the impact of global supply chain shifts”, he noted.
In his speech, he also touched on an earlier initiative to reduce regulatory compliance costs for transhipment.
Announced earlier in 2024, the plan aims to streamline transhipment procedures by cutting the number of permits by half.
For now, two separate permits are required for transhipment through land checkpoints – one for importing the goods and the other for exporting them, whereas the new system will require only one permit.
The process – expected to be implemented by the first quarter of 2025 – will save up to $2 million annually in costs, while also reducing both red tape and time.
“There could be even higher savings if the volume of goods transhipped via our land checkpoints increases in the future,” Mr. Chee noted.
Source: The Straits Times
