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SINGAPORE – Global shipping giant Maersk has warned of significant disruptions at the Port of Singapore, the world's second-busiest container port, due to severe yard congestion. The congestion is causing a cascading effect across its network, leading to vessel arrival delays of up to seven days.

In a customer advisory issued this week, Maersk cited a "perfect storm" of factors, including a surge in container volumes, adverse weather conditions, and a ripple effect from delays at other major ports in Asia. The company stated that it is working closely with port operator PSA Singapore to mitigate the impact but expects the situation to persist for several weeks.

The delays are particularly affecting transshipment cargo, which makes up a large portion of Singapore's throughput. This has raised concerns about potential supply chain vulnerabilities for manufacturers in the region who rely on Singapore as a critical logistics hub. Raw material shipments for the electronics and pharmaceutical sectors are reportedly among the most affected.

Industry analysts suggest that the ongoing Red Sea crisis, which has forced vessels to reroute around Africa, has also contributed to vessel bunching and unpredictable arrival schedules at key Asian ports, exacerbating the congestion issues.