Port of Singapore congestion raising spot market prices, report finds

Vessels waiting as long as 1 week before docking at world’s second-busiest port, according to AlixPartners

From 2018 to March 2024, the annual value of imports into the U.S. rose by 21%, but the value of imports from China decreased by 23%. (Photo: Jim Allen/FreightWaves)

Congestion at the Port of Singapore has slowed docking of trade vessels and boosted spot market prices.

That is according to a recently published “Supply Chain Market Pulse” report by global consulting firm AlixPartners. It finds that the demand/supply dynamic for ocean trade has reversed in recent months. The June report says that while demand is not up, supply constraints have severely restricted available ocean vessels, resulting in higher spot market prices for now.

Compared with significantly lower rates in relatively stable trucking markets, maritime shippers are dealing with international service and pricing volatility.

Singapore congestion

Congestion at the Port of Singapore and, to a lesser degree, at some other Southeast Asia ports, is creating an imbalance of equipment that is raising both local and global spot market pricing. The AlixPartners report states that vessels waiting at the Port of Singapore have steadily climbed since January, hitting a high of almost 100.


Wait times for a berth aren’t getting any better either, with ships waiting up to a week – an increase from just half a day in January. Trade vessels are working to maintain their schedules and are skipping the port to offload at other ports nearby. This is causing further congestion and compounding the issue.

Singapore is the second-busiest port on Earth behind the Port of Shanghai, and the congestion is impacting shipping costs. Spot pricing for outbound shipments from China is up by over 100%. For Shanghai to Los Angeles specifically, rates rose from about $2,000 per forty-foot container in June 2023 to roughly $4,000 in June of this year. The report states that Singapore is working to increase capacity and has recently increased handling volumes by 6%.

Trade, tariffs and China

Meanwhile, recently announced U.S.-China tariffs may accelerate shifts in trade flows in affected categories, the report says. From 2018 to March 2024, the annual value of imports into the U.S. increased by 21%, but the annual value of imports from China fell by 23%, from $543 billion to $419 billion.

Three of the categories seeing the largest drops in the value of imports to the U.S. from China are leather goods (59% decrease), furniture (47% decrease) and wood/pulp products (35% decrease). Vietnam, Mexico and India are the biggest gainers, with Vietnam seeing a 131% overall increase in the value of exports to the U.S., to $118 billion.


The value of imports from Mexico increased by 39% to $478 billion – which is now more than China. Metal parts, footwear and headgear are among the categories that have seen the largest percent increases in the value of imports from Mexico. The value of imports from India has seen consistent growth across industries, with an overall increase of 54%, to $84 billion.

Exit mobile version