A combination of longer container ship rerouting via the Cape of Good Hope to avoid attacks by the Houthi in the Red Sea and a sharp increase in demand has seen waiting times surge at the world’s largest container transhipment hub.
According to terminal operator PSA, some 90% of container vessels have been arriving off schedule this year compared to 73% in 2023, and the average port stay has risen by 22% as more containers are handled per call. Container re-handling on mega-container vessels also increased by 8% in the first half of 2024 as lines seek to optimize the stowage of containers ahead of longer voyages to Europe and the US East Coast via the Cape of Good Hope.
In an attempt to cope with the increased demand, PSA has reactivated berths that had previously been shuttered at Keppel Terminal. Activity has gradually moved to the new Tuas Port in the far west of the island, and PSA has also sped up the commissioning of new berths at Tuas Port.
The terminal operator said that, as a result, the average waiting time in recent weeks had been reduced to two days or less. Lines had previously faced berthing delays of up to seven days.
As Houthi attacks on shipping in the Red Sea continue unabated and the vast majority of container ships reroute via the Cape of Good Hope, PSA is not expecting the situation to improve any time soon.
“The Red Sea crisis has significantly disrupted global shipping and trade and we anticipate this challenging situation to persist for a prolonged period, potentially extending port congestion from Asia to Europe,” said Ong Kim Pong, Group CEO of PSA International.
PSA said it handled 7% more containers in the year’s first half. In the second half of the year, two more berths are planned to be added to the nine currently in operation at Tuas Port.
Source: SeaTrade Maritime
