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.
Port of Long Beach
The Port of Long Beach has launched a new online dashboard called the WAVE (Weekly Advance Volume Estimate) report to help supply chain stakeholders better address cargo flow challenges with the launch of a new data report. The Weekly Advance Volume Estimate, or WAVE, is expected to publish every Monday with cargo volume projections and vessel calls weeks in advance, export, import and empty container estimates.
Please refer to the WAVE report for reference.
Shanghai / Ningbo / Nanjing
Congestions continues, with waiting time for berth now up to 5 to 6 days at least. All vessels’ spaces are full till end of October and all carriers only accept bookings under Premium services. Carriers have stopped all bookings to USEC locations ex Ningbo.
Port under heavy congestion with average waiting time at all terminals is approx. 1 to 2 days. Spaces are full till end of Oct. Only CMA / MSC / ONE accepts limited bookings to IPI locations and all carriers only accept bookings under Premium Services.
All vessel spaces are full till End of Oct. Carriers have stopped all booking to IPI locations via PSW gateway. Carriers only accepts bookings under Premium Services. There are only 2 to 3 operating feeder services operated by Ocean Alliance in September.
Space has been full till the end of Oct. All carriers only accept Premium space bookings.
Hong Kong / Shenzhen
Port operations are normal. YICT’s congestions has worsen with a waiting time to berth of around 4 to 5 days. Spaces are full till end of Oct and only limited FAK space available. Most carriers only accept bookings under Premium Services but Spaces are also full till end of Oct. YML stopped accepting bookings to NYC and Savannah due to heavy backlog. Pearl River Delta area are suffering from serious equipment shortages.
Fuzhou / Xiamen
All vessel spaces are full till end of Oct. Carriers only accept bookings under Premium Services.
No new updates.
The APL terminal is under heavy congestion due to the terminal being 90-95% utilized at this time. Spaces are full till end of October and carriers only accept bookings under Premium services.
HCMC CY is severely congested with no improvement. COVID-19 Lockdown will extend till end of Oct. There are limited feeder services ex HPH. Carriers only accepts bookings under Premium Services and spaces are limited due to congestions and omitted sailings. Blank sailings: WK41 DAH/ PEX3; COSCO SEA2 – CPNW – AWE4 – GME ; WK42 USWC / USEC
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.
COVID lockdowns have much factory production in southern Vietnam, delaying inventory arrival along transpacific supply chains, reports IHS Media.
AIR cargo demand continues to grow, with August volumes up one per cent from 2019 levels, but freighter suspensions in Shanghai added further pressure on low air cargo capacity, reports Washington’s Supply Chain Dive.
CONTAINER pile-ups at US rail yards are adding to port strains, with 100 containerships waiting to enter US ports from Southern California to Savannah, Georgia, reports Bloomberg News.
MORE than 150 containerships are waiting to load at the ports of Shanghai and Ningbo and 242 are waiting for berths across the country, according to eeSea, a company that analyses carrier schedules.
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