Congestion at Singapore’s container port has surged to its highest level since the COVID-19 pandemic, reflecting the global shipping industry’s struggle with significant disruptions caused by attacks in the Red Sea. As vessels avoid this region, global port congestion has risen to an 18-month high, with 60% of anchored ships located in Asia, according to maritime data firm Linerlytica.

The ongoing conflict, particularly from Yemen’s Houthi group, has forced shipping companies to alter their routes, leading to longer wait times and bottlenecks not only in Singapore but also in other Asian and European ports. This re-routing is resulting in ships offloading larger cargo volumes at major transhipment hubs like Singapore, exacerbating congestion and operational challenges.

In recent weeks, average wait times for container ships in Singapore have increased to two to three days, with some delays extending up to a week. Neighboring ports, such as Malaysia’s Port Klang and Tanjung Pelepas, are also experiencing backup as ships opt to skip Singapore altogether.

With the peak shipping season arriving earlier than anticipated due to restocking efforts, container freight rates are climbing, raising concerns about potential inflation similar to the post-pandemic period. The surge in container import volumes, particularly in the US, is driving higher shipping costs, further complicating the situation for retailers and manufacturers.

To alleviate the congestion, the Maritime and Port Authority of Singapore (MPA) is reopening older berths and expanding capacity at Tuas Port. However, experts caution that disruptions from strikes at US and German ports could prolong the challenges faced by the shipping industry, resulting in higher prices for consumers.