Rate & Market Information

 COVID-19 outbreaks across China have led to widespread lockdowns in many cities. The reduced trucking capacity at many Chinese ports could see cargo volumes diminish temporarily as China battles the omicron surge. The supply chain disruption has occurred with restricted trucking services and labor shortage, while shippers are bracing for skyrocketing haulage costs. 

The latest disruption in Shenzhen and Shanghai also cuts into container turnaround. CMA equipment shortage is now deteriorating at many origin ports, so CMA likes to push more SOC business from Shanghai and Ningbo to PSW. 

Due to the impacts of Covid-19 lock-down, carrier have shortfall at almost all China main ports, and we are seeing increase of space availability to PSW and some IPI locations. 

Shanghai: The quarantine area has been further expanded with dynamical changes. The city is organizing massive nucleic acid testing, and Covid test reports valid for 48 hours are widely required for almost all public activities. Trucking restrictions in Shanghai have caused some shipments to be moved out of Ningbo. 

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Port / Space / Equipment Conditions

Shanghai WGQ: Berthing waiting time longer to more than 2 days frequent port closure dense fog. Longer berthing time expected as lock down reduce many powers, as well as slower pickup increase yard density.

Shanghai YS1: vessel berthing delay about 1 day. Lockdown impact will surface in next few days

Ningbo: Berthing waiting time prolonged to 1.5 to 2 days, MSICT & NBCT with longer waiting around 3.5-4 days.

Qingdao: Waiting time around 1 day. Result of on and off port closure in last few days due to dense fog

Shekou: very long berthing delay 3+ days. MCT worst case wait for 1 wk. Terminal only accept laden ingate ETB -4 days continues. Yard density reaching 100%

Nansha: Mderate berthing delay by about half a day. Yard utilization healthy.

Yantian: Berthing delay worsen to around 2 – 3 days, due to slow operation as pilots shortage as well as lack of frontline stevedores. Yard density 90%

Hong Kong: Situation much improved. Berth congestion eased, delay less than 1 day

Pusan: BNCT yard density is around 70%. Berth waiting time around 1 day

Singapore: congestion situation improved, berth waiting time less than 1 day.

Manila: moderated congestion in MNS and MNN, waiting time about 1 day.

Port Kelang: operation normal. Laden yard density around 80%, berthing wait for 0.5 day

Kaohsiung: Yard utilization stable at 90%, berthing waiting time normal

Bangkok: berthing wait time around 1 day

  

Market News

Long-term box freight rates up almost 100% year-on-year: Xeneta

Long-term contracted ocean freight rates climbed by 7% in March, pushing shipping prices up 96.7% year-on-year, even though spot rates continued their long decline. “A combination of relentless demand, port congestion, equipment shortage and Covid disruption have driven the rates trendline to new heights – facilitating huge profits for carriers and worrying times for shippers,” a release from Xeneta explaining the long-term rates stated.

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Maersk Warns Shanghai Covid Lockdown Will Increase Shipping Costs Further

Danish shipper Maersk said the Shanghai lockdown will severely hurt trucking services and increase transport costs, as China’s intensifying efforts to fight the spread of COVID-19 further rattles global supply chains. The Chinese coastal city, home to some of the world’s busiest sea and airports, began locking down half of the city on Monday and intends to do the same to the other half for four days starting Friday in a two-stage testing exercise.

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Shanghai’s 2-stage COVID lockdown may make getting containers ‘almost impossible’

Eastern side of city now under lockdown; west to follow suit Friday 

Logistics managers are warning clients the two-stage lockdown in Shanghai could be worse than the initial COVID lockdowns. “These lockdowns are possibly more severe than the initial quarantines in 2020 when COVID was first discovered,” Jon Monroe of Monroe Consulting told American Shipper. “Many people will tell you the ports are open. And this is true. But the port workers, factory workers and truck drivers are locked in their homes.

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Air cargo rates take off on Russia sanctions, China lockdowns

RUSSIAN airlines have been banned from EU and North American airspace, with Moscow returning the favour, causing air cargo rates to further skyrocket on top of stricter China Covid crisis lockdowns, reports IHS Media. Rates are up 30 per cent to North America and 22 per cent to Europe. “A stressed system has now taken on even more stress,” said The International Air Cargo Association (TIACA) director-general Glyn Hughes.

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The above information is for reference only. However, should you have any inquiries, please do not hesitate to contact us. 

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Disclaimer 

Although J.M. Rodgers Co., Inc. (JMR) makes reasonable efforts to obtain reliable content, JMR does not guarantee the accuracy of or endorses the views and opinions given by any third-party content provider. JMR disclaims all responsibility for any mistakes or inaccuracies in the information. Further, JMR disclaims all liability for loss or damage resulting from the use of information in this newsletter. 

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