Singapore freight forwarders struggle as Middle East conflict disrupts global trade
Freight forwarders in Singapore are facing rising costs and longer delays as the Middle East conflict disrupts global trade. Profits have fallen by 20% due to higher expenses and extended shipping times. Companies are now adjusting routes and pricing to cope with the challenges. The Suez Canal, a key trade route, has seen major disruptions, forcing ships to take longer paths around the Cape of Good Hope. A Europe-to-Singapore journey that once took 21 days now lasts between 45 and 55 days. Some shipping lines are even skipping ports like Dubai, heading straight to Europe or the US instead.
Fuel, insurance, and shipping costs have all climbed sharply. Diesel prices have surged, while freight rates to the Middle East have risen up to tenfold. Dimerco Express Group reported a 30% increase in freight charges in recent weeks. Penanshin Air Express has also added a flat surcharge of S$30 to S$50 per shipment to cover higher operating expenses.
To avoid delays, businesses are turning to air freight for urgent goods like semiconductors and electronics. The shift comes as flight operations recover, offering a faster alternative to troubled sea routes. The ongoing conflict has forced freight companies in Singapore to adapt quickly. With longer transit times and higher costs, firms are changing strategies to keep goods moving. The situation continues to impact trade flows and operational expenses across the industry.
