Rate & Market Information

Little revealed of Beijing, Shanghai’s rolling power black-outs 

CHINA has begun rolling blackouts in its two largest cities, Beijing and Shanghai, as the country wrestles with power shortages that have hit key factories, reports Nikkei.

The Beijing office of State Grid Corp of China said it will begin scheduled power outages in certain areas through Sunday. Electricity will mostly be cut for a few daytime hours at a time. The rolling blackouts will affect at least four districts in the capital. They include Xicheng and Dongcheng, which house government agencies and residences of top officials; Chaoyang, where many foreigners live; and Haidan, where several tech companies are located.

The exact number of homes and business affected has not been disclosed. Some media outlets have reported that the blackouts cut through about 60 grid sections, which would translate to more than 10,000 people being without power. Beijing has a population of 22 million people. The total stockpile of thermal coal held by China’s six major power-generation groups stands has fallen to 11.31 million tonnes, just enough meet demand for 15 days, reports Hong Kong’s South China Morning Post.

The inventory of coal-fired power plants in most parts of the country should, in principle, be no less than 20 days’ worth of coal consumption during the off-season, including now, according to China’s top economic planner, Sinolink Securities. It also estimates that, from September to February, China will need 1.85 billion tonnes of thermal coal, but projections indicate it will fall short by 222 million to 344 million tonnes, about 12 to 19 per cent less than is needed.

The analysis comes as the world’s second-largest economy is suffering its worst power blackouts in a decade. State media also reported that at least 20 out of 31 provincial jurisdictions – from industrial powerhouses in the south such as Guangdong to the rust belt in the northeast – have rolled out electricity-rationing measures in recent weeks.

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Port / Space / Equipment Conditions

The Transpacific demand remains high although the pace has softened. The number of container ships anchored off Shanghai and Ningbo has surged over recent weeks. Congestion is growing at major Chinese ports. There are now 242 container ships waiting for berths countrywide. As of last Thursday, there are 97 container ships at anchor in Shanghai and 125 ships at Ningbo (in addition to approximately 31 ships berthed in Shanghai and Ningbo respectively). Some ships are held for a week or more.

The delays at Chinese origins will ripple through supply chains, raising the risk of another wave of structural blank sailings. The Chinese national holiday on Oct. 1, known as Golden Week, will slow terminal operations there further. Carriers expect the waiting time will gradually drop after National Day from around October 8. Given the extreme anchorage situations both off China and Southern California (nearly 70 container ships at anchor in LA/LB complex, with average waiting time for nine days before berthing), the blank-sailing scenario will likely continue to Q4.

Service Updates

MSC shifts two trans-Atlantic vessels to new trans-Pac services

MSC announced two new weekly shuttles from Da Chan Bay to Long Beach.

Puma service: DaChan Bay – Shekou – Long Beach -> The first sailing: MSC Bhavya, ETD Da Chan Bay on 3 October

Mustang service: Shanghai – Long Beach – Shanghai -> The first sailing : MSC Anya, ETD Shanghai on 16 October

TS Lines reinstate Transpacific services

Taiwanese intra-Asia carrier TS Lines has added five more ship orders at the Chinese shipyards and said it would reintroduce Trans-pacific services. The general manager Mr. Tu said: ” We’re starting our return to the Transpacific with the Canada service, before deciding on resuming the US West Coast service.” The congestion in Canada is much milder than in the US West Coast. Total vessel capacity is from 1600 to 1800 TEUs. 

China Pacific North / NW1 Service 

TS Lines first entered the Asia-North America trades in 2010. Around two years later, the container shipping market weakened through overcapacity and a decline in demand and these services ceased. 

Market News

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