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Singapore port congestion threatens to gum up global trade

Singapore port congestion threatens to gum up global trade
Shipping rates have risen as much as fivefold over the past year

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Singapore's container port is experiencing severe congestion, which is now affecting neighboring ports and posing a threat to global supply chains. Shipping rates have increased up to fivefold over the past year, and this could lead to higher prices for consumers. The congestion is partly due to ships rerouting to avoid Red Sea attacks, causing bottlenecks in other ports and leading to more ships passing through Singapore. Maersk, the world's second-largest container carrier, has already announced the skipping of two westbound sailings due to severe congestion. Additionally, the surge in vessel volume, particularly to and from China, has led to an earlier than expected peak shipping season, further complicating the situation. These issues could result in lasting disruptions to the global supply chain, even after the Red Sea shipping crisis eases.