China’s CNBC supply chain heatmap. Gradually ease the blockade of CovidShows some hotspots that slow down recent trade flows.
China’s “Zero Corona” measures on restrictions on trucking and intercity transport continue to slow manufacturing and logistics. The decline in finished goods is reflected in the decline in exports that leave Shanghai for the United States. The city has no plans to fully reopen from mid to late June.
To make up for the time, shipping companies are increasing canceled voyages and skipping ports. However, the reliability of the schedule has not improved. According to Sea-Intelligence, vessels are on average seven days behind. This created a cloudy situation when the logistics manager tried to plan ahead. Crane Worldwide Logistics said it advises clients to notify them 3-4 weeks in advance to request space for their vessels.
“Congestion is constantly evolving, based on actions by US importers looking for ways to avoid West Coast labor negotiations,” said Peter Sandoz, chief analyst at Geneta. “This has moved ports on the east coast of the United States to record high imports and crowded facilities. Spot prices have fallen, but are still historically high. Long-term contract rates have risen 150% year-on-year. “
The surge in containers occurs at a crucial time for ports on the west coast. Labor negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union are reportedly resumed after a break.
Logistics costs are historically passed to the shipper and then to the consumer. Fuel surcharges also contribute to inflationary pressure.
European exporters are facing a declining number of empty containers used for export, but there are concerns about a strike at Germany’s largest port, Hamburg, and Crane Worldwide Logistics’ EMEA sea freight. Product Director Andreas Braun said. CNBC.
“The threat of a strike by the Hamburg Terminal Operators Union is slowing down the port,” Brown said. “The vessel is sitting in a waiting position in the German Bay for unloading in Hamburg. Coordination between terminal operators and intermodal operators is deteriorating and is expected to worsen in German ports.”
Mr Brown said that once China’s backlog is cleared, congestion will worsen and container availability will decrease, as shipping companies plan to export based on containers coming in from importers. He added that there was already a problem.
Rail freight service will also be interrupted. The German port warned that “limited train service will continue until further notice.”
New York and New Jersey ports expect a “hockey stick-style surge” to occur approximately six to eight weeks after their reopening in China.
“Imported containers from China make up 29.6% of total imports, more than double the Chinese market share at the combined port of Los Angeles and Long Beach,” she said. “If we can’t reduce long-stay imports and empty volumes in the coming weeks, it will be very difficult to deal with the surge.”
Ships are on the rise at all East Coast ports. Savannah port officials told CNBC that they saw an unplanned vessel and expected historic quantities this month.
“Savannah is witnessing severe congestion,” said Alex Charvalias, in-transport visibility leader in MarineTraffic’s supply chain. “The situation is getting worse. Shippers can expect it to take as long as 10 days.”
CNBC Supply Chain Heatmap Data Provider is Freightos, a global freight booking platform that is the creator of the Freightos BalticDryIndex. Logistics provider OLUSA; Supply chain intelligence platform FreightWaves; Supply chain platform BlumeGlobal; Third-party logistics provider OrientStarGroup; Marine analysis company MarineTraffic; Maritime visibility data company Project44; Marine transportation data company MDSTransmodalUK; Analytical company Xeneta’s benchmark sea and air cargo .. A leading provider of Sea-Intelligence ApS, a research and analysis company. Crane Worldwide Logistics, and SEKO Logistics, an aviation and freight logistics provider.
— CNBC’s Gabriel Cortes contributed to this article.
