Ship arrivals, container volume and bunker sales at Singapore's port hit record highs in 2023

SINGAPORE: The Port of Singapore handled a record high volume of container traffic in 2023, official data showed on Friday (Jan 12), reflecting a fruitful year despite ongoing geopolitical tensions and supply chain disruptions.

Container throughput in 2023 rose by 4.6 per cent to a record 39.01 million 20-foot equivalent units (TEUs), topping the previous record of around 37.6 million in 2021, said the Maritime and Port Authority of Singapore (MPA) on Friday.

TEU is a unit of measurement used to determine cargo capacity for container ships and terminals.

A total of 591.70 million tonnes of cargo was handled in 2023, up from 578.22 million tonnes in 2022. The average monthly frequency of regional ferry trips has also recovered to about 70 per cent of pre-COVID levels, said MPA.

The annual vessel arrival tonnage - a measure of the traffic of vessels - at the Port of Singapore for 2023 topped 3 billion GT (gross tonnage) for the first time. The total 3.09 billion GT last year represented a 9.4 per cent increase compared with 2022. 

“This reflects growth in all segments of our port ecosystem, including container ships, dry bulk carriers, liquid bulk and chemical tankers, ferries and specialised vessels, amidst a global trade slowdown,” said MPA.

BIOFUEL BUNKER SALES MORE THAN TRIPLE

Bunker sales rose to 51.82 million metric tonnes, surpassing the previous record of 50.64 million tonnes in 2017. 

Bunker sales of biofuel blends reached 520,000 tons in 2023 versus 140,000 tons in 2022.

Bio-bunker sales far surpassed liquefied natural gas (LNG) sales, which totalled 110,000 tons in 2023, though LNG volumes firmed more than six times compared with 16,000 tons in 2022.

More shippers have conducted refuelling trials using biofuels and LNG as cleaner alternatives to conventional marine fuels. 

MPA noted that the record bunker sales reflected Singapore's support to the global shipping community as a bunkering hub and that alternative fuels - biofuel blends, LNG and methanol - comprised 1.2 per cent of that figure.

This is expected to "continue with good growth prospects" in 2024, the authority said. 

POSSIBLE HEADWINDS IN 2024

MPA attributed 2023’s strong performance to the recovery in regional trade and the “robust tripartite co-operation among the unions, industry and government to consistently enhance the consistently enhance the efficiency, reliability and safety in the Port of Singapore”.

“The COVID-19 pandemic was a test for us, and we did not just pass it but performed well,” said Acting Minister for Transport Chee Hong Tat on Friday at a new year event organised by the Singapore Maritime Foundation.

“We are benefitting from the important moves that we made during the crisis, which built a strong ecosystem with a high degree of trust and partnership.”

However, he warned of "rough seas ahead" as the global economy is expected to grow at a slower pace in 2024, with inflationary pressures and weak consumer sentiment continuing to weigh on economic and trade growth.

Trade flows and supply chains are also being disrupted by geopolitical uncertainty and climate change.

“In 2024, Maritime Singapore must find ways to navigate the stronger headwinds and choppier waters that we will see in the short term, while continuing to invest in industry transformation and talent development to secure our long-term growth and success,” said Mr Chee.

With a more challenging operating environment on the horizon for the industry, MPA will waive the need for security deposits and banker’s guarantees for payers of port dues if they are assessed to be of lower risk.

Parties that are currently billed more than S$5,000 (US$3,762) annually must provide to MPA a security deposit or banker’s guarantee.

Mr Chee said this move, effective from Apr 1, is "expected to benefit about 80 per cent of MPA’s existing billing parties, and improve businesses’ cashflow by more than S$20 million each year". 

This will help Singapore's maritime companies, including small-and-medium enterprises, he added. 

RISING RED SEA TENSIONS

The US and UK on Thursday launched airstrikes on Houthi rebel targets in Yemen in response to the group’s attacks on ships in the Red Sea for almost two months. 

MPA said on Friday it is "closely monitoring" the current geopolitical situation around the world and its impact on key shipping routes and global supply chains.

While the Port of Singapore "remains unaffected" by the situation in the Red Sea, it stands ready to assist ships to "catch up" on their schedules. 

It will also support shippers in their cargo connections should supply chain disruptions be protracted and if ships' schedules are increasingly impacted.

MPA added advisories have been issued to shipowners, managers, operators and masters of Singapore-flagged ships to review their ships’ security plans and implement necessary risk mitigating measures when trading in high-risk areas.