Impact of Supply Chain Disruptions Due To Port Congestion Given Trade and Manufacturing Recovery
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the impact of supply chain disruptions on Singapore’s trade and manufacturing recovery and whether auxiliary industries are benefiting from increased container traffic. Deputy Prime Minister and Minister Gan Kim Yong stated that trade and manufacturing output expanded by 14.2% and 2.9% respectively in May, showing no current negative impact. He acknowledged longer shipping lead times and noted that the Ministry of Trade and Industry is working with maritime agencies and PSA to minimize disruptions. The Minister concluded that the government cannot yet determine the extent to which industries like shipping and logistics are benefiting from higher freight rates.
Transcript
112 Mr Saktiandi Supaat asked the Deputy Prime Minister and Minister for Trade and Industry (a) what is the net impact of the supply chain disruptions due to port congestion on Singapore’s trade and manufacturing recovery because of delays in supplies of imported components, longer export fulfilment times and higher freight rates; and (b) to what extent are industries, such as shipping, logistics, warehousing or those providing auxiliary services to the ports, benefiting from the increase in container traffic and shipping rates.
Mr Gan Kim Yong: To date, supply chain disruptions and port congestion have not affected the recovery of our trade and manufacturing sectors. On a year-on-year basis, total trade expanded by 14.2% in May. Total exports grew by 12.6%, while total imports rose by 16%. Our manufacturing output also increased by 2.9% year-on-year in May.
Nevertheless, we recognise that port congestion here and in other ports around the world has led to longer shipping and transit lead times, which has, in turn, resulted in delays in shipments of imports and exports. The Ministry of Trade and Industry is working closely with the Ministry of Transport, Maritime and Port Authority of Singapore and PSA to minimise the impact to our trade and manufacturing activities and uphold our reputation as a reliable, efficient and trusted logistics and transportation hub.
At this point, we are unable to determine if other industries, such as shipping, logistics, warehousing and those which provide auxiliary services to the port of Singapore, are benefiting from the increase in container traffic and shipping rates.