The Singapore port, already one of the world’s busiest, is facing a congestion crisis as vessels avoid the Red Sea due to ongoing attacks by Houthi rebels in Yemen. This rerouting is pushing more cargo ships towards Singapore, overwhelming its capacity.
The situation isn’t immediately noticeable, as ports typically have some spare capacity. However, the logjam is becoming increasingly evident with the number of container ships waiting off Singapore for four days reaching 44 in May, compared to just 14 in January. This surge is expected to continue as the impact of the rerouting takes hold in the global shipping system.
Experts predict a sustained period of congestion for the Singapore port. While the situation is concerning, it highlights the interconnectedness of global supply chains and how disruptions in one region can have cascading effects on others.
Source: Bloomberg