We would like to inform you of significant congestion at the Port of Singapore, which has reached 2 million TEUs. This has resulted in equipment shortages and a lack of tonnage, leading to potential cargo delays and increased freight rates reminiscent of the pandemic period.
As Singapore, the world’s second-busiest container port, experiences a spike in congestion, carriers are extending charter agreements and ordering new containers in preparation for a potentially prolonged peak season. Currently, 6.8% of the global fleet is impacted, with Singapore becoming a major congestion hotspot.
In response to this severe congestion, some carriers have omitted planned calls at Singapore, shifting the burden to downstream ports that will need to manage additional volumes. This has led to vessel bunching, spillover congestion, and schedule disruptions at these ports.
The current situation has already removed over 400,000 TEUs of vessel capacity from circulation in the past week alone, with further critical delays anticipated as the peak season progresses.
We advise all customers to plan accordingly and stay in close communication with our team for updates on your shipments.
Should you have any questions or require additional information, please don’t hesitate to contact your local Kerry representative.
Thank you for your continued support and understanding.
