Ships were forced to reroute, resulting in delays. In May, vessels that used to take less than a day to dock were waiting up to a week in Singapore.
Going into 2025, manufacturers in Singapore are similarly doubling down on tech adoption to secure supply chains and predict potential shocks.
CHANGES ON THE HORIZON
Firms will have to continue cushioning themselves against geopolitical tensions, supply chain diversification and the impact of technology including artificial intelligence, said Associate Professor Goh Puay Guan from the Department of Analytics and Operations at the National University of Singapore Business School.
He added that uncertainties remain over the resilience of global supply chains, given the promise of tariffs from Donald Trump who will be sworn in as the United States president next month.
Trump late last month pledged big tariffs on the country’s three largest trading partners – Canada, Mexico and China.
He said he would impose a 25 per cent tariff on imports from Canada and Mexico until they clamp down on fentanyl and migrants crossing the border.
He also outlined an additional 10 per cent tariff on imports from China. He had previously said he would end China’s most-favoured-nation trading status and slap tariffs on Chinese imports of over 60 per cent – much higher than those imposed during his first term.
Companies in the US will stockpile in anticipation of an increase in tariffs, said Assoc Prof Goh.
“In the short term, that may actually cause a spike in imports and therefore, potentially shipping rates will go up in the short term,” he added.
Firms will also have to prepare for changes in government regulations along with the leadership transition in America.
“Potentially with US regulations changing with the new administration, it could also mean that there’s a little bit more volatility when companies need to react very quickly to changes in government regulations between countries or changes in tariff structures,” said Assoc Prof Goh.
“That may mean that they have to import more goods to stock up (and) source from other countries.”
