An enormous backlog at China’s ports might influence your vacation purchasing this yr – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-06-18 04:10:00 –

An outbreak of the coronavirus in southern China could clog ports essential for world trade, clear backlogs of shipments, and lead to shortages during the holiday shopping season at the end of the year. Last month, state authorities in southern China began to cause confusion. Guangdong Province, home to some of the world’s busiest container ports, has canceled flights, blocked communities, stopped trade along the coastline, and surged cases of COVID-19. After that, the infection rate improved and many businesses were restarted, but there was damage. At a port about 50 miles north of Hong Kong, the salt pans, which carry 36,000 20-foot containers daily, were closed for almost a week at the end of last month after dock workers were found infected. During the reopening, the port is still below capacity, creating a huge backlog of containers waiting to depart and ships waiting to dock. Salt pan congestion has spread to other container ports in Guangdong, including Shekou, Chiwan and Nansha. They are all located in either Shenzhen or Guangzhou, the 4th and 5th largest comprehensive container ports in the world. The domino effect is causing major problems in the global shipping industry. Related video: Central politics to find the origin of COVID-19. ” Peter Sandoz, chief shipping analyst at Bimco, the Shipowners’ Association, said. “When buying Christmas gifts later this year, people may not be able to find everything they were looking for on the shelves,” he added. As of Thursday, more than 50 container ships were waiting to berth in the Pearl River Delta, Guangdong Province, according to Refinitiv data. This is the largest backlog since 2019. There are concerns about operational obstacles in Shioda alone. According to a recent estimate by Lars Jensen, CEO of Danish consultancy Vespucci Maritime, the port has been unable to handle approximately 357,000 20-foot container loads since late May. This is more than the total volume of cargo affected by the six-day closure of the Suez Canal in March. Port operations in the salt pans have recovered to about 70% of normal levels. However, it is not expected to return to full operation until the end of June. Rapidly rising shipping costs Due to congestion in southern China, major shipping companies are warning clients about delays, changes in ship routes and destinations, and soaring prices. Maersk — the world’s largest container shipping company and shipping operator — last week told clients that ships could be delayed for at least 16 days in Yantian. The company said it would divert some carriers to alternative ports, but it doesn’t always solve the problem. Maersk warned that in places like Shenzhen, Guangzhou and other ports in Hong Kong, waiting times could be longer due to the flood of more ships. Meanwhile, shipping giants Hapag-Lloyd, MSC and Cosco Shipping have all raised freight rates between Asia. And North America or Europe. For example, the MSC announced this month that it would increase shipping from Asia to North America by as much as $ 3,798 per 45-foot container. This is a global trend. According to London-based Drewry Shipping, prices for all eight major east-west routes have skyrocketed from the same period a year ago. The biggest price increase was along the route from Shanghai to Rotterdam in the Netherlands, jumping 534% from a year ago to over $ 11,000 for a 40-foot container. Meanwhile, the average freight rate for containers from China to Europe recently reached $ 11,352.33. According to Refinitiv, at least the highest level since 2017.

CNN —

An outbreak of the coronavirus in southern China could clog ports essential for world trade and take months to clear the shipping backlog, leading to shortages during the holiday shopping season at the end of the year. there is.

Last month, authorities in southern China in Guangdong Province, home to some of the world’s busiest container ports, canceled flights, blocked communities, stopped trade along the coastline, and saw a surge in COVID-19 cases. The turmoil has begun. ..

Since then, the infection rate has improved and many operations have resumed.

However, the damage has occurred. At a port about 50 miles north of Hong Kong, the salt pans, which carry 36,000 20-foot containers daily, were closed for almost a week at the end of last month after dock workers were found infected. During the reopening, the port is still operating below capacity, creating a huge backlog of containers waiting to depart and ships waiting to dock.

The congestion of salt pans has spread to other container ports in Guangdong, such as faucets, Senwan, and Nansha. They are all located in either Shenzhen or Guangzhou, the 4th and 5th largest comprehensive container ports in the world. The domino effect is causing major problems in the global shipping industry.

Related Video: Politics at the heart of the impetus to find the origin of COVID-19

The salt pans are “adding further disruption to the already stressed global supply chain,” said Peter Sand, chief shipping analyst at Bimco, a shipowner’s association. “When buying Christmas gifts later this year, people may not be able to find everything they were looking for on the shelves,” he added.

As of Thursday, more than 50 container ships were waiting to berth in the Pearl River Delta, Guangdong Province, according to Refinitiv data. This is the largest backlog since 2019.

There are concerns about obstacles to operations in Shioda alone. The port has been unable to handle the cargo of approximately 357,000 20-foot containers since late May. According to a recent quote According to Lars Jensen, CEO of Danish consultancy Vespucci Maritime. This is more than the total amount of cargo affected by the 6-day closure. Suez Canal March.

Shioda’s port operations have recovered to about 70% of normal. However, it is unlikely that it will return to full operation until the end of June.

Rapidly increasing shipping costs

Congestion in southern China has led major shipping companies to warn customers about delays, changes in shipping routes and destinations, and rising prices.

Maersk — the world’s largest container shipping company and shipping operator — I told my client last week The ship can be delayed for at least 16 days in the salt pans.

The company said it would divert some carriers to alternative ports, but that doesn’t necessarily solve the problem. Maersk warned that in places like Shenzhen, Guangzhou and other ports in Hong Kong, waiting times could be longer due to the flood of more ships.

Meanwhile, shipping giants Hapag-Lloyd, MSC and Cosco Shipping have all increased freight rates between Asia and North America or Europe. For example, the MSC announced this month that it would increase shipping from Asia to North America by as much as $ 3,798 per 45-foot container.

It’s a global trend. According to London-based Drewry Shipping, prices for all eight major east-west routes have skyrocketed from the same period a year ago. The biggest price increase was along the route from Shanghai to Rotterdam in the Netherlands. That’s a 534% surge from a year ago, surpassing $ 11,000 for a 40-foot container.

Meanwhile, according to Refinitiv, average container fares from China to Europe recently reached at least $ 11,352.33, the highest level since 2017.

A huge backlog at China’s ports could impact your holiday shopping this year Source link A huge backlog at China’s ports could impact your holiday shopping this year