- In a strategic move to enhance efficiency in cargo transshipment, the Singapore government is set to establish the Alliance For Action, collaborating with key industry players such as forwarder DB Schenker, port operator PSA International, and Singapore Airlines Cargo.
- The initiative aims to significantly reduce transit times for cargo transshipped by sea or air in Singapore, the world’s busiest container transshipment port.
Current Transit Challenges
Currently, cargo transiting through Singapore can take up to five days, posing challenges for logistics providers and contributing to delays in the supply chain. The Alliance For Action seeks to address these challenges by identifying and resolving bottlenecks in the transshipment process.
Key Reasons for Delays
Singapore’s Transport Minister, Chee Hong Tat, highlighted two main reasons for extended transit times. First, logistics providers face uncertainty in arrival and departure times, leading to the inclusion of buffer periods in their schedules. Second, manual processes, especially for small and medium enterprises (SMEs), contribute to delays, as last-minute changes in vessel or flight schedules are challenging to accommodate.
Digital Solutions and Real-Time Data
The alliance plans to co-develop solutions to streamline processes, including the creation of a digital platform. This platform aims to provide real-time data on shipping schedules and flights, enabling logistics providers to make more informed and timely bookings. Automation and digitization are expected to address the challenges associated with manual processes and uncertainties.
Target Goals
Chee Hong Tat outlined the alliance’s goals, with a primary target of halving the dwell time for cargo. The ambitious aim is to facilitate the departure of goods on connecting flights or vessels within 24 hours of their arrival. Achieving these targets would not only reduce costs for logistics providers and customers but also position Singapore as a trusted and efficient multimodal logistics hub.
Alliance Members
Apart from the key players mentioned earlier, other alliance members include Singapore Airport Terminal Services and the Singapore Aircargo Agents Association. The collaboration involves various entities to address the complexity of the operation and leverage Singapore’s strength in coordinating efforts beyond government involvement.
Strategic Importance
Chee Hong Tat emphasized the strategic importance of the initiative, emphasizing Singapore’s commitment to working collaboratively with industry partners, government agencies, and unions. The Alliance For Action aims to demonstrate Singapore’s capability to deliver results and enhance its reputation as a reliable and efficient hub for multimodal logistics.
