America’s largest trade gateway to Asia is congested, with the number of container ships waiting to dock at a peak of more than six months.
Follow BloombergThe two ports of Los Angeles and Long Beach (California state), the largest US trade gateway with Asia, are seriously congested. The number of container ships waiting to dock is peaking in more than six months.
If this situation persists, there is a risk of longer delays in shipping, eroding the profit margins of US importers and increasing the price of goods when they reach consumers. Bloomberg warning.
Officials overseeing maritime traffic in San Pedro Bay said that as of the end of August 15, a total of 37 ships were moored waiting to dock outside the two ports of Los Angeles and Long Beach. This number is nearly double the figure in mid-July and is about to hit a record of 40 ships set on February 1 this year.
According to the Port of Los Angeles, the average mooring time for docking is 6.2 days, about 5.7 days higher than at the end of June. The number of days waiting to dock for container ships at the Port of Los Angeles has peaked at about 8 days. in April.
Trade breaks
Trans-Pacific trade routes have been significantly disrupted in recent days as Chinese authorities partially closed the Ningbo-Zhoushan port after a worker tested positive for COVID-19.
The above incident made the already tight shipping capacity even narrower and pushed container freight to near record levels.
Ningbo – Zhoushan is the third busiest seaport in the world by container volume. In 2019, the port handled about 26.49 million TEUs of containers, according to the World Shipping Council. Container volume in 2020 increased by nearly 5% to 28.72 million TEUs.
As of August 16, the port was partially closed for the sixth consecutive day. The global trade industry is standing still if the port of Ningbo – Zhoushan continues to stagnate.
Containers are piled high on a cargo ship. (Photo: Bloomberg).
According to news from BloombergThe port has not released any operational updates since August 11, when officials decided to suspend all arrivals and departures at Meishan station.
Consulting firm GardaWorld estimates Meishan station accounts for about 25% of container throughput through the Ningbo-Zhoushan port, although port operators have said they will redirect ships to other terminals and adjust operating hours. at the remaining berths.
An employee at the Ningbo-Zhushan port information center said they had not received any new information to share when Bloomberg Contact us earlier this week. In addition, China has not reported any new infections at the port since the first case.
Yang Ming Marine Transport warned customers about the possibility of “congestion at the port”, while Orient Overseas Containers asked customers to check the terminal before arranging for container shipment to Ningbo port.
On August 13, shipping giant Maersk said it was transshipping shipments between Asia and South America via Meishan station. Therefore, in response to the current situation, all goods will not pass through Ningbo port this month.
Ningbo-Zhoushan is the second port to be closed in China this year, after Shenzhen’s Yantian port had to “freeze” all operations for about a month because of a pandemic outbreak among port workers.
Dawn Tiura of the shipping association Sourcing Industry Group said that in June, Yantian port had to cut 70% of its exports. Furthermore, the lead time to process orders then tripled from 3 days to 8 or 9 days.
The Ningbo port incident also raised concerns that ports around the world could soon face a similar situation, as the Delta strain is spreading rapidly.
According to VietnamBiz
