Disruption in maritime chokepoints and their implications (ports & terminals)

Abstract

Port plays a vital role in the global supply chain, facilitating the movement and transportation of goods around the world. Given the VUCA (volatile, uncertainty, complexity, ambiguity) world we live in, ports are constantly challenged by their internal and external environment where they are forced to adapt and find solutions to minimise the consequences. Thus, understanding the disruptions and their implications is imperative for the industry to better prepare for similar disruptions in the future. The objective of this paper is to investigate the various disruptions and their implications of maritime chokepoints, focusing on Ports and Terminals. Specifically, the paper will focus on the Port of Singapore and Port of Tanjung Pelepas. Through the literature reviews, the disruptions have been split into two categories, Internal and External. Analysis will be made upon the use of primary research (interviews and surveys) as well as secondary research (journals and articles). Majority of the implication would focus on the operational aspects of ports and terminals, such as the duration and severity of impact. Overall findings concluded that Covid-19 had been the most relevant and severe disruption for both ports given the duration along with other internal factors being affected. Next, cyber-attacks drew mixed response for relevancy due to novelty of the event but general consensus was ports need to be prepared against such threats in the future. It was the second most severe disruptions for the ports. Following which, bad weathers has caused minor disturbance to the port due to slower operations and stoppages. The indirect impact of vessels arriving late from preceding ports due to bad weather have also affected operations with the bunching of vessels. Other disruptions such as capacity, procedures and labour strikes were mostly found to be not an issue as adequate resources have been poured into them. To mitigate such disruptions, I have recommended the port sector to continue investing in digitalisation, ensure collaboration and ramp up cyber security. For digitalisation, the port operator would need to assess current technology and make changes based on adoption period such as using electronic documentation vs building an all-in-one operation dashboard for monitoring and control. Automation can also reduce the number of manpower required, although subsequent employees training is needed. In terms of collaboration, both ports and shipping companies need to work together and communicate transparently to mitigate the congestions. Cyber security was split into small scale and large scale, with the former creating awareness for phishing scams and the latter having a business continuity plan and system in place. Thus, it is hoped that understanding the current disruptions and implications along with adopting the recommendations would lessen the interruptions faced in the future.