Cargo stuck at Changi Airport as Covid-19 causes shortage of manpower

A double whammy of Covid-19 infections among airport staff and the Chinese New Year holidays have led to severe delays in the processing of cargo at the usually efficient Changi airport terminals.

Containers that usually take hours to process now take days, The Straits Times has learnt.

Concerned freight forwarders wrote to ST saying the unprecedented bottleneck has clogged the supply chain for more than two weeks, leading to delays in the delivery of imported goods to merchants.

Even ships waiting for urgent parts brought in by airfreight are marooned at Singapore's ports, while others are staying behind schedule to receive their shipment, they said.

Almost all types of goods, from electronics to books, are affected.

Videos taken from inside and outside Sats' terminals show pallets of cargo sitting untouched, piling up outside the cargo holding areas.

Notices sent by Sats to shippers and freight forwarders dating back to Jan 20 told them to anticipate delays with "the infection rate among our ground staff... on the rise".

A notice dated Jan 31 said 26 of its 240 cargo import staff have been affected by quarantine measures, although 25 of them had not tested positive and were isolating only as a precaution.

"This has inevitably affected the breakdown process and circulation of pallet dollies on the ground," it said.

"Meanwhile, we seek your understanding and patience while we continue to work closely with you and your team to manage this dynamic situation on the ground."

Freight forwarders said the manpower shortage had been exacerbated by Chinese New Year, with some Malaysian staff returning to Malaysia for the festive period.

Sats added in the notice: "A crisis management team has been set up to closely monitor the situation and to activate business continuity plans. We have assigned staff from other operational areas to assist the import team."

Sats is Changi Airport's chief ground handler for airfreight, and is one of two companies with cargo terminals here.

The other is dnata, which has not faced disruptions in cargo movement.

In response to ST's queries, Sats said it has implemented extensive safe management measures to prioritise the safety and health of its staff and customers, and this has led to delays in operations.

"We ensure that any delays caused by the implementation of heightened safety measures do not result in additional costs to customers," it said without elaborating.

The safe management measures, cited in the notices, include staff being segregated.

To keep operations going, it has also recalled some employees and given staff more incentives to return to work during their days off, while alternative sites have been set up to store cargo units.

A freight forwarder's managing director with 40 years of experience, who requested anonymity, said the delay was costing his clients money, with contracts being affected and companies claiming damages against each other.

Some of them were considering diverting their shipments to another airport, but with the rising freight costs, diverting 100kg of goods could cost them $2,000 more.

"Singapore used to be able to clear one shipment within eight hours after the flight touches down but now it's taking more than eight days," he said.

"The cost will be very hefty and we ourselves are expecting claims from our customers for these delays," he added.

"We are also concerned that the backlog of cargo, once cleared from Sats terminals, may cause congestion in our own warehouse due to cancellation of contracts and must be stored till we can forward them to other airports."

Shipping companies said that extra costs charged by the Maritime Port Authority of Singapore for their ships overstaying at ports while awaiting supplies should be waived.

"It is not our fault," said a shipping company spokesman who declined to be named.

"We can't really avoid staying longer than scheduled. We are waiting for instructions from our clients too."

Bookseller Kinokuniya has alerted buyers on its website that their book orders might not be fulfilled on time.

"We are experiencing longer order lead time from our overseas suppliers due to backlog at major ports and air hubs. Please be advised to place your orders earlier with possible delays to be expected," it said.

The International Air Transport Association said in January that key air hubs from New York's John F. Kennedy International Airport to Amsterdam's Schiphol were all reporting congestion due to manpower shortages and insufficient storage space.

Last month, Changi Airport Group said rising demand fuelled by shipping supply chain disruptions had led to a rebound in airfreight from January to November 2021. 

It hit 1.76 million tonnes during the period, or 96 per cent of airfreight throughput over the same period pre-pandemic in 2019.

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