Congestion in South China Ports Could Impact Shipments Through 2021


Dear Customer,

Dwell times at major Shenzhen ports remain disruptively high, despite trending downward in recent days with the Port of Yantian at full capacity again and carriers gradually reinstating services that were diverted from the severely congested Yantian terminals in June.

 Although Yantian is operating at full capacity again, the backlog is affecting the region’s manufacturing sector and presenting a headache for shippers that is expected to last for the immediate future. Even as congestion in Yantian improves, wait times to enter other Pearl River Delta ports and terminals have been on “a downward spiral" according to Maersk. Data suggests that disruptions related to China’s COVID-19 quarantine efforts could extend well into the year, impacting seasonal shipments as far out as Christmas.

 As of July 1st, the rolling seven-day average dwell times were 12.9 days for outbound (Port of Loading) and 4.2 days for inbound cargo (Port of Discharge). While high by pre-pandemic measurements, these numbers are well below last month’s high of 25.4 as a port of lading, which occurred on June 22. Those high port of lading dwell times suggest that port workers are still working their way through a massive backlog of cargo that has built up over the last month, both at the port, and in factories and warehouses across the region.


Blank Sailings Continue into July

Blanked sailings are also on the rise heading into July. While less than last month’s high of 26 blank sailings (which occurred on June 11), these July blank sailings represent hundreds of thousands of total vessel capacity skipping YICT.

Worldwide, space continues to be in short supply. The slow turnaround of vessels at destination ports is the main culprit creating issues with shipping schedules. This is resulting in more blank sailings at a time when the global supply chain needs more sailings, not fewer.


Ever Given Finally Sets Sail From Egypt

Thanks to the signing of a settlement deal between the Suez Canal Authority and vessel owners Shoei Kisen Kaisha Ltd., the Ever Given will be seen off on Wednesday in a ceremony attended by dignitaries, diplomats and company officials from around the world.

Neither side has commented on the size of the settlement or provided other details. One stakeholder said it was near the $550 million mark—the new figure that had been presented in revised court documents. He declined to be more specific, however, citing confidentiality agreements relating to the money issue.

If you require any further information or assistance please contact your BRi Customer Solutions Consultant.


Keeping You Informed!

BR International Logistics NZ Ltd



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