Singapore is the world’s top trans-shipment hub.
As the world’s second-busiest port in terms of total shipping tonnage, Singapore also trans-ships one-seventh of the world’s shipping containers and half of the world’s annual supply of crude oil, and is the world’s busiest trans-shipment port — moving 33.7 million containers in 2017.
Aerial view of PSA Pasir Panjang Terminal, taken during Mr Khaw Boon Wan, Coordinating Minister for Infrastructure & Minister for Transport visit to PSA to mark the completion of Pasir Panjang Terminals 4, 5 and 6 on July 23, 2018. Photo: Koh Mui Fong/TODAY
What is trans-shipment?
Trans-shipment is the process of off-loading a container from one vessel and loading it onto another vessel.
Singapore’s strategic location in the heart of Southeast Asia and at the nexus of major shipping routes has made it an important logistic hub and conduit for world trade. Being the world’s top trans-shipment hub, Singapore is connected to 600 ports, with daily sailings to every major port of call in the world.
With its unrivaled connectivity, many small feeder vessels bring containers to Singapore. At the Port of Singapore, these containers get loaded onto large vessels which will then carry the shipment to their final destination.
The value of trans-shipment lies in it being more cost-efficient and time-saving, as compared to the vessel making a single direct voyage.
If each vessel sails direct to every port, the number of journeys made will look like the above.
If the vessels trans-ships via Singapore, the number of journeys is significantly reduced.
In fact, 85% of containers that arrive in Singapore are trans-shipped to another port of call.
Are you interested to find out more about Logistics and the Supply Chain industry? Come on down to the Singapore Logistics Carnival on 6 Oct 2018 to learn more!