SINGAPORE, Dec 25 — Singapore port operator PSA is preparing for a possible increase in vessel traffic should shipping lines resume using the Suez Canal after nearly two years of diversions around Africa.

The Straits Times reported that carriers had rerouted ships to avoid attacks by Yemeni rebels in the Red Sea, lengthening voyages and raising costs.

“For PSA Singapore, as the world’s largest transshipment hub, we are anticipating demand to be elevated due to a surge in arrival of vessels on the East-bound route, particularly in the initial weeks following the re-routing,” a PSA spokesperson said.

The spokesperson added, “To mitigate potential disruptions arising from these routing changes, we are proactively engaging shipping-line customers and maintaining close communication to facilitate the early exchange of vessel arrival and volume information. This supports advance berth planning and helps uphold service levels.”

PSA said it continues to expand Tuas Port, which will have 12 operational berths by the end of 2025, and is deploying advanced analytics and AI tools to predict vessel arrivals more accurately.

Tuas Port, a mega project, is expected to become the world’s largest fully automated container terminal when fully open in the 2040s, and it handled 10 million TEUs in February.

Shipping analysts noted that a return to the Suez Canal could shorten voyages by 10 to 14 days but may initially cause congestion at major transshipment hubs such as Singapore.

ING economist Rico Luman wrote in a December 1 note: “Container lines deciding to navigate back to the Red Sea is arguably the most important development to watch for in the global shipping market next year. And it’s not a matter of ‘if’, but ‘when’. And should one big company decide it’s worth the risk, others will surely follow.”

The Suez Canal has long been a critical artery for East-West trade, handling more than 15 per cent of global goods and a higher share of container traffic.

Analysts said congestion could also affect European ports as shipping schedules are restructured.

Jayendu Krishna of Drewry explained that rerouting ships back through the canal may require regrouping cargo at key ports, which could lead to temporary bottlenecks.

He said, “A likely possibility is the slow return to the canal. Rerouting may cause some congestion. But I believe the situation should be manageable. Any congestion will likely be temporary.”

PSA said it recognises that geopolitical tensions, rapid technological change and environmental pressures are reshaping global supply chains, and it aims to strengthen operations and connectivity to give customers a competitive edge.