Singapore Port Mitigates Supply Chain Disruption

PSA Singapore (PSA), a major global transhipment hub, has significantly ramped up its capabilities to support increased activity and mitigate the impact of global supply chain disruptions since the beginning of 2024. This includes reinforcing its frontline capacity, commissioning new berths at Tuas Port, and reactivating berths and yard space at Keppel Terminal. As a result, the average wait time at the port in recent weeks has been reduced to two days or less. As the various disruptions, including the Red Sea situation are still ongoing, the supply chain demand and impact remain volatile. PSA remains committed to work alongside its customers during these uncertain times.

Since the start of 2024, PSA has faced strong berth demand as well as off-schedule vessel arrivals, resulting in high concentrations of vessels arriving during certain days of the week, causing a significant increase in waiting times despite maxing out all of PSA’s berths. Larger call sizes have required vessels to stay longer, with lengthier transhipment container dwell. This has arisen from a confluence of various factors, including the Red Sea situation (which has indirectly reduced overall global shipping capacity), upstream and downstream ports congestion, and port omissions by shipping lines to recover their schedules, giving rise to substantial changes in vessel arrival patterns and call sizes.

Mr Ong Kim Pong, Group CEO of PSA International said, “As the flagship project for the Group, PSA Singapore remains committed to meet the challenges of ongoing volatility and ensure the port’s development and handling capacity align with our customers’ needs. The Red Sea crisis has significantly disrupted global shipping and trade and we anticipate this challenging situation to persist for a prolonged period, potentially extending port congestion from Asia to Europe. PSA is building partnerships with like-minded customers and stakeholders on a series of Node-to-Network initiatives to better coordinate between upstream and downstream ports so as to uplift shipping schedule reliability and overall network efficiency. At the same time, we are also constantly on the lookout to expand our fabric of port networks and port ecosystems so as to grow our global presence in locations which can add value and enhance cargo flows. By leveraging our port facilities, supply chain capabilities and especially our people, we remain steadfast in enhancing collaboration with our customers to address their bespoke needs amidst the ever-changing global landscape.”

Singapore’s port has seen about 90% of container vessels arriving off-schedule, compared to an average of about 77% in 2023. In addition, vessel port stays at PSA have also increased by 22% compared to the same period last year. This is due to more containers being handled per vessel call due to higher demand and container re-handling, where some containers are unloaded from the vessel to make way for other containers in consideration of port of discharge, weight and vessel stability. Unloaded containers are then loaded back to the vessel again.

PSA’s new berths at Tuas Port

Container re-handlings on mega vessels berthed at PSA have increased by 8% in the first half of 2024, compared to the previous year. This is due to high vessel utilisation caused by the Red Sea situation that results in shipping lines leveraging more on PSA to optimise the stowage of containers on board their vessels, and to ensure safety at sea, especially now when most mega vessels are taking the longer route around the Cape of Good Hope. This in turn has led to extended vessel port stays and will affect the berthing time for incoming vessels, even while PSA upkeeps its productivity.

Nevertheless, PSA’s proactive efforts and close communications with the shipping lines and the various stakeholders thus far have helped mitigate the impact of the disruptions to a large extent. The PSA Singapore Management team has been collaborating closely with the Unions and receiving strong support from the Maritime and Port Authority and Ministry of Transport of Singapore, ensuring that the port ecosystem is working seamlessly.

Market Comment

“The congestion that we see today across many ports in the region is likely to be temporary. Singapore port operators are looking to mitigate the situation, which was unexpected and created by an extensive change in shipping routes due to the Red Sea crisis. Singapore remains an important node to assist the liners in managing the supply chain disruptions. Our Ports Performance database is showing shorter waiting times in June as compared to May,” commented Chris Rogers, Head of Supply Chain Research, S&P Global Market Intelligence.

PSA says it will continue its efforts to play a pivotal role in helping shipping lines navigate service disruptions and optimise their network configurations, which has helped alleviate berth waiting times and mitigated any other impact of the ongoing disruptions, including vessel call diversions from port congestions elsewhere in the region. PSA moved 7% more container volumes in the first half of 2024, compared to the same period last year. Amid this prolonged period of business unusual and market volatility, PSA remains committed to pursuing long-term strategies. These include enhancing capacity and capabilities through automation and smart technologies.

In addition to the reactivation of some berths and yard space at Keppel Terminal, PSA’s Tuas Port currently operates nine berths and will add two more by the end of this year. Looking ahead, we plan to further expand Tuas Port and continue hiring frontline workers across all our terminals. In 2024 alone, PSA hired nearly 1,500 frontline workers to enhance our operational capabilities and capacity.

Amidst the global supply chain disruptions, PSA has also been supporting beneficial cargo owners and logistics service providers with a series of value-added services which help to enhance supply chain visibility and expedite handling to mitigate the impact of delayed shipments. By leveraging port assets and supply chain capabilities, initiatives such as priority discharge, expedited delivery, fast connection management help the supply chain stakeholders to tailor bespoke solutions to meet their unique pain points.

Regardless of the challenges, PSA remains committed to collaborating with all stakeholders, including government authorities, to enhance the standards of service excellence, reliability, and efficiency as it scales-up operations in the future.

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Singapore Port Group’s Container Throughput

 

Supply Chain Disruption Eased by Control Tower Satellite Visibility

Viasat, Inc. is working with TCTEC Telecom to provide its powerful satellites for the company’s Long Range (LoRa) Peer-to-Peer technology, which allows vehicle tracking, direct communication between trucks, and alert monitoring.

Headquartered in Londrina, Southern Brazil, TCTEC Telecom operates 81 offices in the country and has over 20 years of experience delivering satellite connectivity for clients in the public and private sectors, spanning a range of industries. In transport, its end-to-end IoT solutions give fleet operators to-the-minute visibility of their supply chain, with real-time indicators, vehicle monitoring, and even fuel auditing to help companies operate more efficiently and lower emissions.

The company has now joined ELEVATE, Viasat’s growth program, ecosystem, and marketplace for ambitious IoT providers, connectivity wholesalers, and manufacturers who want to work with Viasat to use its network and footprint at scale.

As a new member, TCTEC Telecom will be able to access Viasat’s highly reliable satellite connectivity and secure, enterprise-grade network infrastructure to strengthen its capacity and work with Viasat’s ecosystem of partners.

James Grisbrook, Senior Director, Marketing and Communications, Viasat Enterprise, said: “The global supply chain market is set to experience a compound annual growth rate of more than 10% between 2020 and 2027, all while tackling significant economic and political headwinds. Access to reliable connectivity and smart technology is going to be vital to meet rising demand – particularly in countries with large rural areas like Brazil. With ELEVATE, we’re excited to work with forward-thinking companies like TCTEC to bring more groundbreaking solutions at speed.”

Augusto Machado, IT Director, TCTEC Telecom said: “TCTEC Telecom is excited about the ELEVATE partnership with Viasat and all the new possibilities that this program can offer. For us, this collaboration means more than just a partnership; it is an opportunity to drive our technology forward and deliver innovative connectivity and communication solutions.

“The ELEVATE program proves to be the ideal platform to achieve this goal. We are ready to join this collaborative journey, overcoming connectivity challenges, and providing continuous innovation to our customers.”

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Inmarsat launches initiative to harness industrial IoT

 

Overhyping the Impact of Baltimore Bridge Collapse

The collapse of the Baltimore bridge is a tragedy. But the impact on supply chains at a global or even North American level won’t be huge – and overhyping it could risk losing public trust and fanning the flames of inflation. Let’s avoid crying wolf.

US Secretary of Transportation Pete Buttigieg’s comment last week was a bit much: “This will be a major and protracted impact to supply chains.” I doubt it.

The collapse was shocking and the deaths of six construction workers a tragedy. Plus, the people of Baltimore will remember it with sadness forever. But the impact on supply chains at a global or even North American level won’t be huge.

What happened?

The exact failure of the container ship Dali is still unknown, but video images show a loaded vessel losing its lights, and presumably power, briefly gushing black smoke from its funnels, getting its lights back, and then hitting the main bridge support. The bridge collapsed onto the bow of the ship in less than ten seconds.

What it means for supply chain: Ports

The Port of Baltimore is closed, with 40+ vessels stuck inside the fallen bridge, and all inbound vessels being rerouted. It is not known how long clearing the passage will take. In terms of volume, Baltimore is not a vital US port. It ranks seventeenth in total tonnage, tenth in dry bulk tonnage, and fifteenth in TEU volume. Alternative east coast ports include New York, Savannah, and Virginia, all of which are larger.

Baltimore is, however, a key port for roll-on/roll-off shipments, including cars, trucks, and farm equipment. This will create problems for manufacturers, like Deere and Caterpillar, moving product overseas. These are finished goods, though, which means ripple effects seen in Europe when parts held up by Red Sea attacks forced some stoppages at Tesla and Volvo assembly plants won’t be an issue this time. Also, auto dealerships in the eastern US may wait longer for imported vehicles to arrive, but again, these are finished goods en route to lots full of inventory.

From this perspective, the impact will be minor compared to the post-Covid crisis that put supply chains on our collective radar.

What it means for supply chain: Road

The accident also knocks out a major interstate highway for years, if not forever. That sounds terrible, but the bridge only carries 11 million vehicles per year compared to parallel north-south harbor tunnel routes, which, combined, carry almost 72 million vehicles each year. It is true that hazmat transport is prohibited in these tunnels, but the western loop of the Baltimore beltway is an option, adding about 15 miles to the Patapsco River crossing. Again, the impact on supply chains should be relatively minor.

What it means for supply chain: Infrastructure

As for the argument that our infrastructure is “crumbling” and supply chains are therefore “fragile,” the Key Bridge collapse is more symbolic than symptomatic. It was inspected in 2023, passing over a dozen specific metrics of structural integrity tests according to the US DOT’s National Bridge Elements Health Index. But it should be no surprise to anyone who saw the footage that the bridge couldn’t handle a direct hit from a container ship – our supply chain infrastructure does need more investment, especially our outdated seaports, but the collapse of this bridge is not proof of that idea.

The good news: Resilience and vigilance are working

Celebrated, but disproportionately to the initial hysteria about “snarled supply chains,” was the fact that the ship signaled distress and, within minutes, police had stopped traffic in both directions. Plus, technology-heavy logistics firms like project44 and Flexport, which track and help manage global shipping for big companies, are already rerouting shipments that were headed to Baltimore.

Supply chain managers are currently handling problems in more important transportation choke points, including the Suez Canal and Panama Canal. More worrying still is the threat of a strike at all US East Coast ports.

Transportation and logistics leaders have significantly improved resilience since the Covid crisis, meaning that most are already well into contingency plans in response to this disruption.

The bad news: News

Buttigieg isn’t crazy to warn of supply chain impacts arising from the Baltimore bridge tragedy, and televised news clearly can’t resist featuring the story. But the urge to overhype the supply chain angle risks losing public trust and fanning the flames of inflation. Let’s not cry wolf.

Baltimore Bridge Collapse - Kevin O'Marah, Zero100

This article was written by Kevin O’Marah (pictured), co-founder of Zero100.

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Navigating Supply Chain Disruption

Supply chain disruption: how to navigate ‘never normal’ distribution networks, by Andy Grygiel (pictured), CMO at project44.

Today, managing an organisation’s supply chain can feel like an impossible task. Modern multi-tier logistics networks are spread between hundreds of suppliers across multiple continents—under this globalised model, businesses enjoy maximised distribution efficiency when all is well. However, with supply chains rarely running normally, they also suffer damaged transparency, resilience, and reputation at the slightest setback.

Unfortunately, growing numbers of high-profile supply chain disruptions—from the Ever Given container ship running aground in the Suez Canal to attacks on trade vessels by Houthi rebels in Yemen—show that organisations’ logistics systems require greater support than ever. Let’s explore the potential effects of these often-unforeseen challenges on your business and consumers, and how intelligent supply chain technology can help mitigate them.

Overcoming extreme weather as soon as it occurs

Weather forecasts aren’t simply there to help you decide whether you need to carry an umbrella—they also play a key role in worldwide trade. And as climate change triggers an increased number of extreme weather events, organisations today rely on weather condition data to ensure their supply chains continue to run smoothly. But access to this information is only the first step. Without the capacity to then quickly reroute vessels to reduce delays in trade routes, these events become increasingly difficult to overcome.

Take recent developments in the Panama Canal. This crucial maritime trade conduit, connecting the Atlantic Ocean with the Pacific, is responsible for 40% of worldwide vessel traffic. It’s also grappling with persistent drought conditions that have reduced its capacity by as much as 30%, leading to lengthy trade disruptions and reductions. The immediate cause is the naturally occurring El Niño warm-weather phenomenon. However, scientists also now believe that widespread climate change is behind prolonged dry spells and even higher temperatures in the Panama region.

Similarly disruptive weather events are taking place right across the globe. So, businesses need intelligent, high-velocity supply chain platforms to help them accordingly adapt their routes and make sure trade remains as seamless as possible. For instance, if severe weather impacts a city during the holidays, visibility into last mile solutions with real-time predicted ETAs will allow companies to make re-routing decisions faster. Then, they can alert their customers as soon as possible which helps to reduce support calls and increase overall customer satisfaction.

Reacting in real-time to unforeseeable obstacles

Unfortunately, there will also be occasions in which supply chain disruptions simply can’t be anticipated. You may have seen recent headlines of the attacks by Houthi rebels in Yemen on container vessels in the Bab al-Mandeb, a strait that connects the Red Sea to the Gulf of Aden and the Indian Ocean. Meanwhile, November 2023’s cyberattacks on Australian shipping ports offers another example of unpredictable events faced by organisations.

These crises underscore the importance of visibility, agility, flexibility, and resilience, all of which are powered by advanced supply chain technology. Simple location tracking of vessels is no longer sufficient; today, you need to be able to visualise which shipments and orders on which vessels are impacted by disruptions, plan a safe alternative route, and view and transmit an updated ETA to customers.

Let’s use the conflict in the Red Sea as an example. Businesses using a high-velocity platform not only benefit from real-time insights into vessels affected. They can also adapt their inventory management and downstream planning to limit stock outs. Improve operational efficiency by rerouting shipments to avoid putting vessels in danger and strategize on the most effective new shipping lines to use. Minimise costs by identifying and mitigating penalties and fees that occur because of upstream disruption. And, perhaps most importantly, boost customer satisfaction with transparent, proactive communication on delays to reset delivery expectations.

The importance of faster, more informed decision-making

Numerous recent supply chain disruptions have become global news stories. However, their publicity doesn’t always mean that customers will be any more sympathetic if goods are delayed, and regularly late deliveries can damage brand reputations. Organisations must harness competitive advantages—such as intelligent supply chain software—to stand out from the crowd and provide exceptional customer experiences. From avoiding any added costs that are usually passed on to customers to ensuring that goods arrive as soon as possible, the world’s leading shippers, carriers, and LSPs are now using advanced digital tools to transform supply chain operations from a cost centre to a revenue generator.

Ultimately, supply chains are never ‘normal’. Extreme weather events, unforeseeable geopolitical disruptions, and rapid technological evolutions mean organisations may never be able to expect their logistical operations to work smoothly every day. Instead, wielding all the available intelligence tools now at their disposal is the closest they can get to a frictionless, straightforward supply chain—and consistently delighted customers.

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Industry View: Secure Your Supply Chain Now to Beat Disruption

 

Governments grapple with Supply Chain Disruption

Today, BSI, the business improvement and standards company and leading global provider of supply chain intelligence, unveiled its annual Supply Chain Risk Insights Report which indicates that organizations that manage supply chain disruption effectively in 2023 will be best equipped to weather the financial challenges ahead.

In terms of major trends within the supply chain environment, the report observed that thefts from hijacking have fallen as a proportion of cargo theft from 24.4% to 17.0%. These are now second to theft from facilities, which now account for more than a quarter of total thefts, having increased from 24.2% to 26.0%. Food and beverages remain the most commonly stolen commodity and the report highlighted that this has increased considerably in 2022, increasing share by 2.8%. The proportion of automotive and fuel thefts is also rising, whereas the proportion of electronics, agriculture and construction theft has fallen. While hijacking has also fallen as a proportion of cargo theft, BSI observed that this continues to exert a real impact on global supply chains – with food, pharmaceuticals and construction materials most effected.

Another of the report’s key findings is that unprecedented price inflation, exacerbated by the Russia-Ukraine war, but also an enduring legacy of COVID-19-related shutdowns and the resulting prolonged shortage of key manufacturing components, has awakened governments to the importance of global supply chains to national interests. This has led to the launch of new legislation such as the CHIPS Act and the Bipartisan Infrastructure Law in the US, and increased GPDR regulations across the EU, the combination of which is placing greater accountability on suppliers and purchasers. Government intervention spans efforts to bolster domestic supply chains, reduce carbon emissions, and enhance governance.

Monitoring rapidly changing regulatory agendas is highlighted as one business imperative that decision-makers need to be aware of if organizations are to succeed in the face of the ongoing global disruptions.

The report identifies five additional imperatives that organizations will need to address to enable future growth and provide financial sustainability:
– Leadership: Supply chain continuity requires investment from the top down and what organizations really need right now is strong buy-in from top level leadership
– Digital: Organizations need to urgently address their digital risk, with 73% significantly concerned about the risks posed by the digitization of supply chains, but not one organization having resolved the risk
– Self-knowledge: Organizations need to invest in tools and technology which help them form a comprehensive understanding of their supply chain environment, such as data analysis, IoT, cloud computing, information security and predictive analysis
– A tailored approach: An awareness of the different, unique challenges facing each sector’s supply chain is key
– New technologies: Data, the metaverse, and cybersecurity are segments of technology that will differentiate organizations’ approaches to building strong supply chains

Susan Taylor Martin, Chief Executive of the British Standards Institution (BSI), which compiled the report, said: “2022 saw volatility in global supply chains that many would never have expected in their lifetime. Successive crises, including a global pandemic followed by a war in Europe, have resulted in continued uncertainty on many fronts and have demonstrated to governments the benefit of ensuring a robust global supply chain. Given the turbulence of the last twelve months, 2023 will be an important watershed for many organizations – with those that successfully manage their supply chain risks being more likely to thrive.”

Jim Yarbrough, Global Intelligence Program Manager at BSI, said: “The threats facing global supply chains vary from region to region and are distributed unequally, but in the face of rampant global price inflation, all countries ended 2022 in conditions more precarious than they were at the outset. Without intervention, businesses will see dramatic impacts on their bottom line, meaning that discussing supply chain issues at the C-suite level can help to ensure investments are funnelled to suppliers, building resilience to threats and supporting financial sustainability.”

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