Singapore ports handle second-highest ever container throughput despite fall in global container trade
SINGAPORE’S ports handled 37.3 million twenty-foot equivalent units (TEUs) last year, just shy of the record 37.6 million TEUs they handled in 2021, according to Maritime and Port Authority of Singapore (MPA) data released on Friday (Jan 13).
This represents a total of 577.7 million tonnes of cargo handled in 2022, while vessel arrival tonnage hit 2.83 billion gross tonnage.
This was despite a decline in global container trade of 3 to 4 per cent, said Senior Minister of State for Finance and Transport Chee Hong Tat.
Speaking at the Singapore Maritime Foundation New Year Conversations 2023, he noted that the Republic’s International Maritime Centre expanded steadily despite external headwinds from the Russia-Ukraine war and global inflationary pressures.
“Importantly, we retained our position as the world’s largest transshipment port and during the pandemic, we enhanced Singapore’s connectivity and strengthened our position as a catch-up port for shipping lines, contributing to the resilience of global supply chains,” Chee added.
Notably, bunker sales fell in 2022 as total volume declined by 4.3 per cent to 47.9 million tonnes.
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“Volumes dipped particularly in the first half of 2022 when the Russia-Ukraine war led to supply chain disruptions and high bunker prices globally,” the minister said. Still, bunker sales appear to have recovered, with sales volume rising 9.5 per cent in the second half of 2022, compared with the first half.
A total of 15 ship-to-ship liquefied natural gas bunkering operations were also conducted.
Chee also noted that total business spending by shipping companies exceeded S$4.3 billion in 2022, and that 30 per cent more companies set up or expanded operations in Singapore compared to 2019 figures.
These include agri-business Olam Group’s expansion of its shipping operations, as well as French bank Société Générale’s establishment of a finance desk to capture opportunities in the region and support maritime decarbonisation.
In addition, the number of startups in the maritime industry under the Port Innovation Ecosystem Reimagined @BLOCK71 (PIER71) programme has also grown from 17 in 2018 to close to 100 last year.
These startups have raised over S$50 million in the past four years, and MPA intends to grow the programme to engage 150 startups by 2025.
While Chee said global economic growth is expected to slow in 2023, he remains optimistic about the maritime industry’s potential to achieve growth in the medium to long term.
To do so, the industry will need to develop stronger capabilities in digitalisation and decarbonisation, as well as adopt new technologies and innovation efforts, he explained.
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