US calls transshipments a ‘scam’: Why do firms reroute goods, and how does Singapore manage this?
Analysts think stricter US scrutiny could be a chance for Singapore to position itself as a trusted, traceable hub.
The United States has criticized transshipping, a centuries-old shipping practice, for being used to hide the true country of origin of goods. Singapore, the world's largest container transshipment hub, has not been spared and was named by the White House in a report titled "The Great Transshipment Scam." The U.S. claims that Chinese exporters are using Singapore to avoid its tariffs.
The report also states that the U.S. will use an AI-powered tool to crack down on illegal transshipments that falsify the country of origin for goods headed to the U.S. Singapore's port has seen an 8.6% increase in container throughput in 2025, with about 85% to 90% of those containers being transshipped or re-exported. Experts suggest that stricter U.S. scrutiny on this so-called "shadow transshipment network" could benefit Singapore by positioning it as a trusted and traceable hub.
However, some analysts argue that the U.S. may encourage a globally diversified production and sourcing network, leading to further diversification of supply chains and adjustments to shipping patterns.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
