OUTLOOK FOR INDUSTRY “GOOD” DESPITE UNCERTAINTY
However, the fundamentals of the shipping industry “remain strong”, Mr Heng said. Global trade hit a record high in 2021 with more than 80 per cent of the trade volume carried by sea, he said.
“Despite the current uncertainty, the medium-term outlook for the global maritime industry is good,” said Mr Heng. “But to realise this potential, we must deal with the challenges and opportunities.”
Global container shipping rates increased more than four times in 2021, compared to pre-pandemic levels.
On the other hand, the reliability of vessels arriving at ports on time more than halved to about 35 per cent last year, from around 78 per cent before the pandemic.
“This is partly due to the disruptions to manpower and logistics brought on by COVID-19, and lower investment in capacities in the down-cycle years,” said Mr Heng.
“But stripping away the cyclical and COVID-19 effects, the statistic also shines the spotlight on the potential for us to significantly improve the efficiency of entire supply chains, and capacity to adapt to evolving circumstances.”
GREEN SHIPPING CORRIDORS
In his speech, Mr Iswaran announced that Singapore will join the Clydebank Declaration for Green Shipping Corridors, together with 22 other signatory states.
The Clydebank Declaration aims to support the establishment zero-emission maritime routes between two or more ports known as green shipping corridors. At least six such corridors are expected to be established by the middle of the decade.
Mr Iswaran said: “Looking ahead, decarbonisation is a major challenge for the maritime industry. And we must act – today and together. As a global maritime hub, Singapore seeks to contribute to this critical effort in a flexible and inclusive way.”
The Transport Minister added that decarbonisation must be a “whole-of-industry effort”.
“Efforts at the company and industry level are just as important as government-led efforts,” he said, adding that Singapore welcomes industry-led collaborations to leverage its maritime hub ecosystem to pilot and deploy green solutions.
