What They Say
The South China Morning Post reports that the delays at the port of Yantian (Shenzen) caused by Covid procedures and outbreaks, are causing bigger shipping delays than the recent problems with the ship blocking the Suez Canal. The paper reported that 298 container vessels skipped the port (equivalent to 3 million 20′ units) in the first half of June. Delays in loading and unloading have meant that median dwell times doubled to 23 days. It could take some weeks to solve the problem although authorities have said that they are opening more berths.
The delays and shortages continue to put pressure on container costs and the paper reports that carriers are asking for $20,000 per 40′ container to deliver to Northern Europe, and $17,000 to US East Coast ports.
What We Think
These numbers looked very high to me. However, Seatrade Maritime News, an Informa publication said that Shanghai to Rotterdam rates were up 6% on the week to June 18th at $11,196 per TEU (20′ equivalent unit) for shipping from Shanghai to Rotterdam, up 534% on an anuual basis! Given the problems and delays in Yantian, I can imagine prices were a lot higher. (BR)
Yantian port. Image: Gigel.atat Wikimedia Commons
