According to the financial data provider Refinitiv, 34 ships are currently waiting for their berth here alone.
(Photo: Reuters)
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Singapore The traffic jams of container ships in front of major Chinese commercial ports are getting longer by the day after the new corona outbreaks in the People’s Republic. The most important ports are open and would also unload cargo, ship owners, analysts and supply chain managers said on Wednesday the Reuters news agency. But the lines were getting longer, which is why some container ships are already changing their routes to avoid the expected delays. Higher transport costs are likely to result.
The reason is the rapid increase in corona infections in China, which were not as severe as they were at the beginning of the pandemic two years ago. Loading at Shenzhen’s Yantian Port, the world’s fourth-largest container terminal, is already “decreasing massively,” said Jasmine Wall, Asia-Pacific manager at transport company Seko Logistics. Truck drivers and factory workers would have to stay at home.
“This means that it will be difficult to transport cargo to and from the ports,” confirmed Lars Jensen, head of Vespucci Maritime, a container shipping consultancy. “This will have a disruptive effect on the supply chain – and thus prolong the already existing supply chain crisis.”
The spread of the highly infectious omicron variant of the coronavirus in China has hit key manufacturing hubs such as Shenzhen and Dongguan this month. There, the lines stood still in many plants – from factories for the construction of computer accessories such as flash drives to car parts. According to the financial data provider Refinitiv, 34 ships alone are currently waiting for their berth off Shenzhen. A year ago, the average was just seven. Around 30 ships are waiting to dock in the eastern Chinese port city of Qingdao.
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Charter costs for certain containers are already at an all-time high on major global shipping routes. According to the barometer of the online freight market operator Freightos, they are sometimes around $16,000 on the route between China and the US West Coast, and almost $13,000 on the route from China to Europe.
Experts warn of further price increases
Experts believe that the Chinese ports are now better prepared than before for staff shortages and transport disruptions. However, they fear that Yantian could be temporarily closed if the infections continue to spread. Even if the terminals remain open, there are likely to be delays in loading shipping containers and transporting them to the port due to a lack of truck drivers and warehouse operators.
With nearby export hubs like Hong Kong and Shanghai also suffering from bottlenecks, ships may have to wait a long time before loading and unloading their cargo, said Peter Sand, chief analyst at Xeneta, a cargo analytics company. “I expect consumers in the US and shippers shipping to North America to be the hardest hit,” Sand said.
The zero-tolerance policy of the Chinese authorities in the fight against the corona virus indicates to the shipowners’ association Bimco that there is a high probability of further closures. “A slowdown in Chinese exports will exacerbate supply chain disruptions and reduce corporate inventories, which could lead to further price increases,” said Bimco chief analyst Niels Rasmussen.
More: New wave of Covid in China puts pressure on the economy – Foxconn and VW pause production
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