Amid global disruptions in ocean shipping, Singapore’s container port is grappling with unprecedented congestion, marking its worst period since the Covid-19 pandemic. The situation underscores the far-reaching impacts of prolonged vessel re-routing to avoid Red Sea attacks, causing bottlenecks in ports across Asia and Europe.

Industries reliant on container shipping, such as retailers and manufacturers, are once again contending with skyrocketing freight rates, port backups, and shortages of containers. These challenges come at a critical time as businesses prepare for the peak year-end shopping season and strive to build up inventories.

According to maritime data firm Linerlytica, global port congestion has surged to an 18-month high, with approximately 60 percent of anchored ships located in Asia. Ships carrying over 2.4 million twenty-foot equivalent container units (TEUs) are currently waiting at anchorages, reflecting disrupted schedules and fewer port calls due to extended routes around Africa.

Unlike the consumer-driven surge during the pandemic, current congestion is primarily due to logistical adjustments made by shipping companies to navigate safer routes. This has resulted in larger cargo offloads at major transhipment hubs like Singapore, where goods are transferred between ships to meet revised schedules.

Jayendu Krishna from Drewry Maritime Advisors explains, “Shippers are strategically managing the situation by leveraging transhipment hubs, leading to a 22 percent increase in cargo offload volume in Singapore from January to May.”

Singapore, ranked as the world’s second-largest container port, has seen significant congestion recently, with ships experiencing prolonged berthing delays ranging from two to seven days. Nearby ports in Malaysia and China are also affected as some vessels bypass Singapore, causing backups and increased wait times.

Efforts are underway to mitigate these challenges. Singapore’s Maritime and Port Authority (MPA) has reopened older berths and expanded operational capacities at key terminals. Additionally, there are expectations that congestion levels may ease as carriers enhance capacity and restore regular schedules.

Despite these efforts, the disruptions in global shipping are expected to translate into higher consumer prices, reflecting increased freight costs from Asia to the US and Europe.