Singapore port logjam lingers as container ships keep piling in
HomeInsightsSingapore port logjam lingers as container ships keep piling in
Jun 21, 2024
The logjam that’s been plaguing Singapore’s container port is bringing forward this year’s peak season for the shipping sector, spelling trouble for businesses in the city-state.
The bunching up of container vessels outside one of the world’s busiest maritime trade hubs — caused by ships avoiding the Red Sea due to Houthi rebels’ attacks — means there’s more cargoes trapped in shipyards for longer. That’s pushing freight rates ever higher, with no immediate end to the congestion in sight.
What does this windfall mean for investors?
The soaring container costs and early peak season create lucrative opportunities in container leasing and trading. As demand continues to outstrip supply, investing in container assets could yield high returns.