Singapore beats Hong Kong in gross tonnage registered as more vessels reflag

[SINGAPORE] The ship registry of Singapore has pulled ahead of its closest competitor, Hong Kong, after some shipowners reflagged their vessels to the city-state amid US-China geopolitical tensions.

There were 4,230 ships with total gross tonnage of 127.8 million sailing under the Singapore flag as at end-September, data published by the Maritime and Port Authority of Singapore showed.

This was higher than the 120.6 million registered in Hong Kong, which had 2,162 ships as at end-September, according to the Hong Kong Shipping Registry.

Ship registries are ranked by gross tonnage.

Higher tonnage in September made Singapore the fourth-largest ship registry in the world, moving up one spot from August and overtaking Hong Kong, which slipped to fifth.

Liberia continued to claim the crown, with Panama and the Marshall Islands retaining their second and third positions, respectively, data from maritime and shipping research services provider Clarksons showed.

The Singapore Registry of Ships’ gross tonnage rose from 108.7 million to 134.9 million – a 24.1 per cent increase – in the first 10 months, including the 114 ships with 7.1 million gross tonnes added in October alone.

The registry added 358 ships and 26.2 million gross tonnes from January to October.

In contrast, gross tonnage of the Hong Kong Shipping Registry declined steadily from January’s 132.2 million, losing about 8.8 per cent in the first nine months. Hong Kong’s October numbers have not been published yet.

The higher number of ships registered under Singapore this year came as more shipowners reflagged their fleets to the Republic to navigate the geopolitical tensions between the world’s two largest economies.

Hong Kong-based Pacific Basin Shipping earlier announced that it transferred several vessels, under a plan to move about half of its fleet to Singaporean ownership and flag. These reflagged ships are to be deployed on voyages calling at US ports while the American levy on China-linked vessels entering them is in force.

Pacific Basin’s strategic leadership and commercial decision-making, along with responsibility for technical management of its Singapore-owned fleet, are located in the Republic, the company added.

Seaspan, meanwhile, reportedly moved its headquarters from Hong Kong to Singapore, with its fleet of 100 vessels to be reflagged to dodge US port fees.

Company filings from a search on data platform Handshakes showed that Seaspan, which touts itself as the world’s largest independent charter owner and operator of containerships, incorporated 82 companies in Singapore in July and August.

These companies had attempted to circumvent the fees levied by the US on China-related vessels entering American ports from Oct 14. Reciprocally, China imposed charges that are similar to the American port fees on US-linked ships visiting ports in the Asian country.

But China and the US reached an agreement on Oct 30, to pause the mutual imposition of port fees on each other’s vessels calling at their respective ports.