Congestion at Yantian Port has extended to surrounding ports, with delays at Nansha and Shekou ports continuing to increase due to the cancellation of a large number of vessels calling at the heavily congested Yantian Port, which has placed a heavy burden on the surrounding ports.

Blank flights rose by 300% in the first half of June due to congestion at Yantian Port, and container freight continued to soar to unprecedented levels.

project44 analysts said that between June 1 and 15, 298 voyages were suspended by container liners worldwide, with a total capacity of more than 3 million TEU, which means that the number of unscheduled voyages increased by 300% in one month. While not all air flights are caused by Yantian International Container Terminals, the impact is clear.

Josh Brazil, vice president of marketing at project44, said: "While the port of Yantian was the epicenter of this accident, these numbers have caused problems for the shipping industry as a whole, especially those companies that rely on these routes. Even freight that is not directly affected by the Yantian situation will be affected as operators adjust their networks to avoid congestion. ”

Josh Brazil said the number of blank sailings was still rising as of June 24 and will decline after that, depending on the port and South China continue to be contained.

Maersk said that as of June 21, the density of parking lots in Nansha has reached 100%, and ships at Nansha Port are expected to continue to be delayed for 4-5 days in the coming week. Nansha will only accept export containers loaded seven days prior to the vessel's estimated arrival time, and will only be accepted if the terminal confirms that the trucking company has booked in advance. The supply of 40-foot containers in Yantian and Shekou remains tight, and Maersk advises customers to use 20-foot containers as an alternative.

The Port of Shekou, which includes Chiwan Container Terminal, Mawan Container Terminal and Shekou Container Terminal, has tightened its rules to only accept locks full of export cargo within 4 days before the expected arrival time of vessels.

Shekou Port (including Chiwan Container Terminal, Mawan Container Terminal and Shekou Container Terminal) has tightened its regulations and only accepts export bookings within 4 days prior to vessel arrival. In the case of Yantian itself, Maersk reported that the operating capacity of the terminal east is about 54% of normal capacity, and is gradually recovering, with yard density reduced to 60%. Maersk expects flights from Yantian to be "delayed for more than four days" in the coming week.

On June 21, Maersk reported that the number of vessels operated by Maersk and its partners that had cancelled their call at Yantian increased to 90 from 84 last week. Containers loaded with imported goods on these vessels are expected to be delayed for more than three weeks.

Project44 warns that even if operations return to normal, it could take weeks to process the backlog of containers. "If the Chinese authorities extend their strict control measures, the daily double-digit blank sailing rate could continue into July, throwing the supply chain of this globally important port into disarray until the summer," the analyst said. ”

At present, the container shipping market is facing various problems caused by cargo backlogs, ship delays, port skipping, and shortage of containers and shipping space. 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 a chain reaction due to the disruption of empty container allocation back to South China, and the subsequent impact of this incident will last for more than half a year.

Flexport CEO Ryan Petersen said there is currently 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 just around the corner.

At the same time, ongoing congestion, capacity and equipment shortages are driving container rates higher. On June 17, the Drury's World Container Composite Index rose 3.4%, or $231, to $6,957.44/FEU. Shanghai-Rotterdam prices rose 6% from the previous week to $11,196 per TEU, up 534% year-on-year. Drewry expects rates to rise in the coming week due to the implementation of the GRI, high production and equipment shortages.

Congestion in South China has led to congestion surcharges imposed by shipping companies, FAK and premiums that continue to rise. In the week ended June 18, S&P Global Platts said it had a premium service fee of $9,000-$10,000/FEU for cargoes from North Asia to the U.S. Pacific coast. Rates to the Atlantic coast of the United States (transatlantic to the east) are significantly higher than those of the transpacific, with all premium bookings priced above $15,000/FEU, but sources say rates are closer to $18,000 to $20,000/FEU. One North American shipper said: "Premiums are approaching the FAK rates for March and April. "The slow flow of inland containers at the port of destination, the increase in empty flights, and the further increase in freight rates, even if the premium service cannot guarantee the space. It is recommended to book four weeks in advance.

Asia-U.S. (Transpacific Trade): Space is tight on the West Coast/East Coast of North America; Due to multiple factors such as port congestion, shipping schedule delays, capacity imbalances, inland transportation delays, and continued strong demand for imports in the Americas, many shipping companies announced that the GRI and PSS will be raised and levied in July. Further increases in freight rates in July are inevitable. It should be noted that: due to port congestion, the capacity is in short supply, and the rotation pressure of empty containers increases; Shipping companies are limited to cargo from inland points.

Asia-Europe routes: the demand in Europe and the Mediterranean market is strong, the shipping space is very tight, the SCFI index in Europe has risen steadily, and the freight rate has reached a record high; Due to the epidemic prevention and control measures in South China, the terminal has tightened its operation process and operated slowly; Ships have been cancelled from Yantian Terminal, and some cargo has chosen to be shipped north from East China, and the shortage of containers in the East China market will be further exacerbated in the next few weeks. Freight rates will continue to rise.

This article is from the shipping network