SINGAPORE: An Introduction to Shipping: Domestic

Singapore Overview 

Singapore retained its title as the leading maritime city in the world in 2024 and is expected to hold this position for the next five years. Further, the annual vessel arrival tonnage in the Port of Singapore crossed three billion Gross Tonnage (GT) for the first time in 2023 , making Singapore the busiest port in the world in terms of shipping tonnage.

The Singapore Registry of Ships (SRS) continues to rank amongst the largest ship registries globally. The total tonnage of ships under the Singapore flag in 2023 reached 99.56 million GT. Singapore is also home to more than 180 international shipping groups as well as other maritime players in finance, insurance, cybersecurity, shipbroking, law and arbitration.

Shipping Laws 

Singapore’s shipping laws were derived from UK laws and broadly cover commercial shipping, admiralty law and the shipping of goods. Maritime transportation of goods is generally governed by the Bills of Lading Act 1992, the Carriage of Goods by Sea Act 1972 (which enacts the Hague Visby Rules) along with common law principles.

Singapore’s High Court (Admiralty Jurisdiction) Act 1961 governs admiralty law and jurisdiction. It deals with specific claims made against ships, shipowners or ship charterers that fall under the General Division of the High Court’s admiralty jurisdiction. In Singapore, a ship can only be arrested if she comes within territorial waters and the port limits of Singapore. It must be noted that in the affidavit filed in support of the warrant of arrest, the arresting party has the duty to make full and frank disclosure to the court of all material facts.

The Merchant Shipping Act is another piece of legislation that addresses a wide range of topics, including manning, crew matters, safety concerns, registration of shops in Singapore and the limitation of liability for shipowners for maritime claims.

Singapore implemented the Protocol of 1996 to Amend the Convention on Limitation of Liability for Maritime Claims on 20 December 2019. For liability arising out of an occurrence which took place before 29 December 2019, the 1976 Convention or the 1957 International Convention Relating to the Limitation of the Liability of Owners of Sea-going Ships (hereinafter ‘the 1957 Convention’) apply (depending on when the claim arose). The test or the requirement for breaking limitation for the 1976 Convention and 1996 Protocol is essentially the same. With the Merchant Shipping (Amendment) Act 2004, the regime for limitation of liability based on tonnage of the vessel follows that of the1976 Convention. The 1976 Convention only applies to liability arising out of an occurrence that takes place after 1 May 2005. Liability arising out of occurrences which took place before this date continues to be governed by the 1957 Convention.

Issues of oil pollution are governed by the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act 1998, the Merchant Shipping (Civil Liability and Compensation for Bunker Oil Pollution) Act 2008 and the Prevention of Pollution of the Sea Act 1990.

Dispute Resolution 

Singapore has been listed as an official seat of arbitration in BIMCO dispute resolution clauses since 2012. A signatory of the New York Convention, Singapore arbitral awards are enforceable in 172 countries worldwide (as at 30 May 2024). Under the International Arbitration Act 1994, courts are mandated to stay any proceedings commenced in breach of an international arbitration agreement. The courts also provide a supportive role through court-ordered interim measures. These measures play an important role in arbitration notwithstanding the wide powers of tribunals. This is because there are occasions where arbitral tribunals are unable to provide quick enough assistance, such as where the tribunal has not yet been constituted or because the rules governing the arbitration do not permit one party hearings. Under s 12A of the International Arbitration Act, the General Division of the High Court is conferred with substantially the same powers as are available to arbitral tribunals in the making of interim measures such as the ordering of security for costs and the preservation of property. Emergency interim relief obtained from the court carries with it the consequences of contempt right from the outset.

The judiciary in Singapore has taken a strong pro-arbitration stand by adopting a policy of minimal judicial interference in arbitration proceedings. When faced with a setting-aside application, the preferred approach of the courts is to read the award supportively and in a manner that is likely to uphold it rather than to destroy it. When it comes to enforcement of awards, the overarching aim of the court to facilitate the enforcement of arbitral awards.

The Singapore Chamber of Maritime Arbitration (SCMA) is the main arbitral body for shipping disputes and it offers an expedited procedure for claims and counterclaims that do not exceed USD300,000 in value. For arbitration matters in general, there is the Singapore International Arbitration Centre (SIAC).

Parties who prefer mediation can turn to the Singapore International Mediation Centre (SIMC) or the Singapore Mediation Centre (SMC). Both have specialist shipping mediators.

Civil actions commenced in the Singapore courts take typically around 12 to 15 months from the commencement of suit to the completion of trial. All admiralty matters must be commenced in the General Division of High Court which has specialist shipping judges.

State of the Market 

With the current unrest in the Red Sea to Chinese exporters scrambling to ship goods ahead of trade curbs in the US and EU, shipping delays have more than doubled in the Singapore port. All this comes on the back of a shortage of ships and containers with ships remaining at sea for longer periods of time, causing a supply chain crisis and pushing prices up for consumers.

The Port of Singapore Authority has said volatility is here to stay and it will ramp up capacity and smart technologies at its terminals to mitigate disruptions.