Asia/Pacific News
Shipping Industry Downturn Helping Singapore at Regional Rivals' Expense
The loss of box line business from Malaysia's Port Klang earlier this year could be bolstering throughput at Singapore, according to a Malaysian shipping executive.
Shipping Association of Malaysia chairman Ooi Lean Hin told local news provider Malay Mail Online that Port Klang may have to play second fiddle to Singapore for some time.
The Malaysia port had benefited from a cheaper ringgit [the Malaysian currency] but weaker global trade and consoldation and cost-cutting among box lines has taken the edge off Port Klang's advantage.
Although Singapore terminal costs are higher, it would make more sense for shipping companies to call at Singapore since smaller feeder ships from ports from around the region can travel roughly 600km less to load or unload goods from larger vessels parked there, Ooi told the news provider.
"While Port Klang may be in the Malacca Strait, geographically it is not as strategic as Singapore," Ooi was quoted as saying.
"This is where we lose out because from a feeder perspective you end up having to travel a little bit more," he added.
But Singapore remains by far the biggest regional player while it is one of the biggest globally, and the extra box business may also be helping to bolster the country's well established position as the world's biggest bunker port.
Indeed, last month monthly bunker volumes in Singapore were up year on year and continue at record year-to-date levels.
