Project44 data indicates heavy congestion in Chinese ports
While much attention has been paid to the backlog of container ships awaiting docking at the Port of Los Angeles and Port of Long Beach (there were 73 at anchor in September), the west coast of the States United is far from the only place to address these challenges.
This is clear from the data released today by The Chicago Project44, a technology service provider offering standardized and secure API (Application Programming Interfaces) integrations that allow 3PLs and senders to connect. to carriers in real time. , there were “about 386 ships (anchored and moored) off Shanghai and Ningbo, two of China’s busiest ports, of which 228 were freighters and container ships.”
The company noted that these numbers reflect various industry themes, including further product shortages and delays for businesses and consumers, coupled with holiday sales, as well as a post-pandemic global recovery. In addition, the number of ships anchored and moored off these Chinese ports is even higher, when one takes into account that containerized trade through Chinese ports accounts for 40% of global container trade. third.
As for the underlying factors contributing to these port problems, project44 cited various factors, including:
- the persistent arrears of the closure of the port of Ningbo linked to the pandemic;
- the impact of typhoon Chantu and the âgolden weekâ between October 1 and 7; and
- continued high container spill rates, a sign that Chinese ports “are not making significant progress in handling excess cargo, with Ningbo’s container spill rate at 36% in September and the ports of Hong Kong and Shanghai at 41% and 37%, respectively
Another major problem compounding this situation is the power shortage crisis in China, with its federal government implementing what the project44 called strict power rationing, which has led manufacturers to cut back on production. a time when demand is increasing, adding that mandatory power limits and coal supply shortages affecting world trade.
And container delivery times for ships from China are also impacted for a variety of reasons, including: cargo reversals related to the space capacity of ships, overbooking, blank crossings, as well as additional costs incurred. port costs which take into account rising rates.
âDelays caused by reversals of goods also affect production and delivery patterns at destination ports, as customers who have placed orders for raw materials for manufacturing or retail products for consumers cannot not get their goods on time, âproject44 said.
This is corroborated by project data44, which showed that there was a nine-day gain in delivery times from the port of Yantian to the west coast of the United States, from 2019 to 2021, an increase of 34 , 85%. And there was a gain of nine days on schedule, for the same period, from Shanghai and 10 days from Qingdao, increasing by 36.39% and 32.79% respectively.
âThe biggest dwell time delays we’re seeing are in transshipment,â said Josh Brazil, project44, vice president of Data Insights. LM. âSailing schedules are upset and the reliability of schedules is taking a hit, as are transhipment delays and turnover rates. We are seeing more than 10 delays at Chinese transshipment ports. If shippers can avoid transshipment routes, they will cover themselves against possible additional delays. In the short term, we expect the situation to remain the same throughout the first quarter of 2022 after the Chinese New Year in February. The energy crisis as well as the recent floods in Shanxi Provence will continue to restrict manufacturing production in a context of high and sustained demand in North America and the EU. . “
Brazil also noted in project44 data that orders are currently reaching customers with a delay of at least 10 days from pre-pandemic delivery times in 2019, and it also noted that shippers should ” ensure that they allow sufficient time for the goods to move from point A to point B and to ensure that the cargo is cleared and delivered on time.
About the Author
Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handling, and Supply chain management review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight transportation and material handling industries on a daily basis. Contact Jeff Berman