Singapore will cut port duties on cargo by vessels by 30pc from tomorrow, as part of a new package of measures to help maritime companies manage the impact of the Covid-19 pandemic.
The Maritime and Port Authority of Singapore (MPA) said the 30pc reduction will be imposed on top of all existing concessions of port dues. It will apply to cargo vessels with port stays of no longer than five days.
A similar concession will be granted to harbour craft that do not carry passengers. Ships providing offshore supporting services, which normally stay in the port for longer, will be eligible for 50pc concessions on port dues from days 91-180 of their stay.
The concessions will run from 1 May to 31 December 2020.
The port authority acknowledged that some companies are struggling to manage cash flows and meet their financial obligations, and said it will "exercise flexibility in credit management measures" for the rest of this year.
The MPA and other Singapore regulators last week said that Singapore's bunker sector was not facing any serious impact from the collapse of oil trading company Hin Leong, but warned of "short-term minor disruptions" in the bunker market.
Singapore imposes tariffs on all oceangoing ships for port activities such as loading or discharging cargoes, supplying bunkers or provisions, crew changes and shipyard repairs. Rates vary depending on the length of stay, size of the vessel and the purpose of call. For cargo activities, dues are $7.50 per 100 gross tonnage for the first day and another 50¢ per day for the five days of their stay.
Vessels using LNG, other clean fuels or abatement technology will be eligible for a 25pc concession for stays of fewer than five days under Singapore's Green Port Programme.
The concessions are part of the MPA's new S$27mn ($19mn) MaritimeSG Together package of measures to provide financial help to companies that have been hit by reduced cargo demand because of Covid-19. The measures include the extension of a previously-announced 50pc concession on port dues for cruise ships and ferries until the end of the year, from the original end-date of 31 August.
