SINGAPORE’S ports had a bumper year in 2023 despite global trade disruptions, setting records for annual vessel arrival tonnage, container throughput and bunker sales, according to Maritime and Port Authority of Singapore (MPA) data released on Friday (Jan 12).

But with choppy waters ahead for the industry, MPA will reduce the burden on payers of port dues by waiving an existing requirement for security deposits and banker’s guarantees, for those assessed to be of lower risk, announced Acting Transport Minister Chee Hong Tat.

Speaking at the annual Singapore Maritime Foundation New Year Conversations event at Pan Pacific Singapore, Chee described 2023 as a “fruitful year” for the Singapore maritime industry but warned that rough seas lie ahead.

In 2023, annual vessel arrival tonnage rose to 3.1 billion gross tonnage (GT), up 9.2 per cent from 2.8 billion GT in 2022 and exceeding the previous record of 2.9 million GT in 2020.

This reflects growth in all segments, including container ships, dry bulk carriers, liquid bulk and chemical tankers, ferries and specialised vessels, said MPA.

Container throughput increased 4.6 per cent to a high of 39 million twenty-foot equivalent units (TEUs), up from 37.3 million TEUs in 2022 and eclipsing the previous record of 37.6 million TEUs in 2021.

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A total of 591.7 million tonnes of cargo was handled by the ports, up 2.3 per cent from 578.2 million tonnes in 2022, but short of the previous record of 630.1 million tonnes in 2018.

There were also record bunker sales of fuel for marine vessels. Bunker sales increased 8.2 per cent to 51.8 million tonnes, up from 47.9 million tonnes in 2022 and exceeding the previous record of 50.6 million tonnes in 2017.

Amid increased bunker sales, the supply of alternative fuels rose, supporting maritime decarbonisation.

Bunker sales of biofuel blends rose to 520,000 tonnes in 2023, from 140,000 tonnes sold in 2022. Liquefied natural gas bunker sales increased to 110,000 tonnes in 2023, up from just 16,000 tonnes in 2022.

While alternative fuels accounted for only 1.2 per cent of total bunker sales in 2023, alternative fuel sales are “expected to continue with good growth prospects in the coming year”, noted MPA.

The Singapore Registry of Ships, for vessels sailing under the Singapore flag, grew 4.3 per cent to cross 99.6 million GT for the first time. Said Chee: “We can expect to reach the 100 million GT milestone very soon, early this year.”

The past year’s growth was achieved despite an expected slowing of global trade, observed MPA. The United Nations Conference on Trade and Development predicts that global trade contracted by 5 per cent or US$1.5 trillion to below US$31 trillion in 2023.

On Friday, Chee announced a change in MPA’s approach to port dues, which are collected from ship owners, ship managers and ship agents of vessels that call here. Currently, parties that are billed more than S$5,000 annually must provide a security deposit or banker’s guarantee.

To help maritime companies, MPA will take a more risk-based approach. From Apr 1 this year, the requirement for security deposits and banker’s guarantees will be waived for billing parties assessed to be of lower credit risk.

This is expected to benefit about 80 per cent of MPA’s existing billing parties, and improve businesses’ cashflow by more than S$20 million each year, said Chee.

MPA will continue to work with tripartite partners to identify further rules for review and areas for improvement to simplify processes, reduce compliance costs and shorten processing time, reinforcing Singapore’s maritime competitiveness, he added.

This is even as Singapore “can expect some rough seas ahead, amid a more challenging operating environment for the maritime industry”, he noted.

Global growth is expected to slow, with inflationary pressures and weak consumer sentiment weighing on economic and trade growth, he said. Trade flows and supply chains are also being disrupted by geopolitical uncertainty and climate change.

But in these troubled waters, there are opportunities. Said Chee: “We are not done developing and growing our hub port and international maritime centre. There is still a lot of potential for further growth and to bring about new opportunities for businesses and new jobs for our workers.”