Singapore’s Imports Affected by Red Sea Shipping Disruptions
The recent attacks on vessels in the Red Sea have led to higher freight charges and some delays in imports, but businesses in Singapore are finding the situation manageable, according to Trade and Industry Minister Gan Kim Yong. He noted that the economic projections have taken into account the ongoing disruptions in the region.
Impact on Trade Routes
In response to the attacks, major shipping lines have been rerouting their long-haul vessels through the Cape of Good Hope, bypassing the Suez Canal and Red Sea. This diversion adds 10 to 15 days to the transit time. The goods most affected include petrochemicals, speciality chemicals, and machinery, which are typically shipped via the Red Sea.
Regional Impact
While the disruptions have caused delays, Gan emphasized that only a small proportion of goods shipped from Europe to Singapore pass through the Red Sea, so the overall impact on the city-state’s global imports has been limited.
The situation in the Red Sea escalated in November 2023 when rebel Houthis in Yemen began attacking vessels, citing support for Palestinians in Gaza amid the Israel-Hamas conflict. In response, military forces from the United States and the United Kingdom launched strikes against the Iran-backed Houthis, who then declared American and British interests as legitimate targets.
