The congestion at Yantian Port has extended to surrounding ports. Due to a large number of ships canceling calls at Yantian Port, which is severely congested, it has placed a serious burden on surrounding ports - delays at Nansha Port and Shekou Port continue to increase.
Affected by congestion at Yantian Port, blank flights increased by 300% in the first half of June, and container freight continued to soar to unprecedented levels.
Project44 analysts said that between June 1 and 15, global container liners suspended 298 voyages, with a total capacity of more than 3 million TEU, which means that the number of suspended voyages increased by 300% within a month. Although not all empty traffic is caused by Yantian International Container Terminal, the impact is obvious.
Josh Brazil, vice president of marketing at project44, said: “While Yantian Port is the epicenter of this incident, these numbers spell trouble for the entire shipping industry, especially those companies that rely on these routes. Even those not directly affected by the situation in Yantian "Freight shipments will also be affected as operators adjust their networks to avoid congestion. "
Josh Brazil said that as of June 24, the number of blank sailings was still rising and would decline thereafter, depending on the port and the epidemic in southern China continuing to be controlled.
Maersk stated that as of June 21, the parking density in Nansha has reached 100%, and it is expected that ships at Nansha Port will continue to be delayed for 4-5 days in the next week. Nansha only accepts export containers loaded seven days before the ship's expected arrival time, and only if advance bookings are confirmed by the trucking company at the terminal. The supply of 40-foot containers in Yantian and Shekou remains tight, and Maersk advises customers to use 20-foot containers as an alternative.
Shekou Port, which includes Chiwan Container Terminal, Mawan Container Terminal and Shekou Container Terminal, has tightened regulations and will only accept locks fully loaded with export cargo within four days before a ship's expected arrival time.
The Port of Shekou (including Chiwan Container Terminal, Mawan Container Terminal and Shekou Container Terminal) has tightened regulations and only accepts export bookings within four days before the ship's arrival. As for the salt pan itself, Maersk reported that the terminal's east end was operating at about 54% of normal capacity and was gradually recovering, with yard density falling to 60%. Maersk expects flights to Yantian to be "delayed by more than 4 days" in the coming week.
On June 21, Maersk reported that the number of ships operated by Maersk and its partners canceling calls at Yantian increased to 90 from 84 last week. Loading containers of imported goods on these ships is expected to be delayed by more than three weeks.
Project44 warned that even if operations return to normal, it could take weeks to deal with the backlog of containers. The analyst said: "If Chinese authorities extend their strict control measures, daily double-digit blank sailing rates may extend into July, throwing the supply chain of this important global port into chaos until the summer."
Currently, the container shipping market is facing various problems caused by cargo backlog, ship delays, port hopping, container and space shortages. Some analysts said that once the port resumes normal operations, it is expected that there will be a surge in demand for cargo exports in the next 2-5 weeks, as well as the chain reaction caused by the interruption of empty container deployment back to South China. The subsequent impact of this incident will be It will last for more than half a year.
Flexport CEO Ryan Petersen said there is no single solution to the shipping delays that are disrupting the global economy. Resolving this global shipping delay "may take a while," especially with the holiday season and Christmas approaching.
At the same time, ongoing congestion, capacity and equipment shortages are driving container freight rates upward. On June 17, Drewry's World Container Composite Index rose 3.4%, or $231, to $6,957.44/FEU. The Shanghai-Rotterdam price increased by 6% from the previous week to US$11,196 per TEU, a year-on-year increase of 534%. Drewry expects rates to increase in the coming week due to GRI implementation, high production volumes and equipment shortages.
Congestion in southern China has resulted in congestion surcharges, FAK and premiums levied by shipping companies continuing to rise. In the week ended June 18, S&P Global Platts said premium service charges for cargoes sailing from North Asia to the U.S. Pacific coast were $9,000-$10,000 per FEU. The freight rates to the US Atlantic Coast (transatlantic to US East) are significantly higher than those across the Pacific. The prices for all premium bookings are more than 15,000 US dollars/FEU, but sources said that the freight rates are close to 18,000 US dollars to 20,000 US dollars. USD/FEU. A North American shipper said: " The premium is approaching the FAK rate in March and April. " The flow of inland containers at the destination port is slow, empty flights are increasing, freight rates are rising further, and even premium services cannot guarantee space. It is recommended to book a space four weeks in advance.
Asia-U.S. (Trans-Pacific route): Space on the West Coast/East Coast of North America is tight; due to multiple factors such as port congestion, shipping schedule delays, capacity imbalances, inland transportation delays, and the continued strong demand for imports in the Americas, many The shipping company announced that the GRI and PSS will be increased and levied in July; further increases in freight rates in July are inevitable. It should be noted that due to port congestion, transportation capacity is in short supply and the rotation pressure of empty containers increases; shipping companies are restricted to cargo from inland points.
Asia-Europe route: Market demand in Europe and the Mediterranean is strong, and space is very tight. The SCFI index on the European route has risen steadily, and freight rates have reached a record high. Due to the epidemic prevention and control measures in South China, terminals have tightened their operating procedures and operations have been slow; ships have successively canceled calls. At Yantian Terminal, some goods choose to be shipped northward from East China. The shortage of containers in the East China market will further intensify in the next few weeks. Freight rates will continue to rise.
This article comes from Maritime Network