In cutthroat shipping industry, Singapore’s moves to increase its berth rate are paying off

The island nation has cemented its role as a global maritime powerhouse thanks to an alliance between its port operator PSA and Japan’s largest ocean carrier ONE

The deal means all of the world’s three major container shipping alliances – accounting for more than three quarters of global container trade – have come to Singapore

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The Port of Singapore currently holds the title as the world’s top transshipment port and the second-busiest port globally, after Shanghai. Photo: Reuters

Published: 8:00am, 21 Jan 2019Updated: 8:11am, 21 Jan 2019

In the cutthroat world of shipping, Singapore has cemented its role as a global maritime powerhouse thanks to a deal signed between its port operator PSA and Japan’s largest ocean carrier.

PSA entered into a joint venture with Ocean Network Express (ONE) last month to operate four mega container berths in Singapore, making the country the primary port of call for ONE’s services.

The deal was the final piece of the puzzle in drawing all of the world’s three major container shipping alliances – which together account for more than three quarters of the world’s container trade – to the island nation.

More significantly, it has put the Port of Singapore ahead of its nearest competitors in Asia. For Malaysia’s Port Klang, in particular, the partnership between PSA – the country’s port operator – and ONE comes “as a blow”, said shipping consultancy Alphaliner’s chief analyst Tan Hua Joo, who is based in Singapore.

“Port Klang is the main loser as the move limits their ability to draw away Singapore’s customers, now that all three of the global shipping alliances are tied to PSA through various joint-venture arrangements,” he said.