Vessel delays at the Yantian Port, a deep-water port in Shenzhen, China has been worsening over the last week and thus, the port is predicted to stay congested throughout the month, supported Project44’s container dwell time data. The congestion at Yantian is thanks to tight controls.
By June 7, Project44 found that minimum dwell times at YICT as a port of loading was at some point , while median dwell times were at most 18 days. While minimum dwell times at YICT because the port of discharge was also each day , median dwell times were far higher at 18 days. The Yantian Port kept its container yard hospitable vessels from May 31 to June 6 and therefore the Shekou Port (another port facility in Shenzhen) is accepting vessels within an ETA of 5 days from June 1.
Port congestion within the South China Sea surrounding Yantian has been severe. As of June 7, 47 vessels are approaching the port with upcoming ETAs of which 22 vessels with ETAs already within the past. With roughly 32% of all vessels approaching Yantian delayed already, the congestion is predicted to increase over subsequent weeks. Several container lines have announced rerouting their vessels faraway from the Shenzhen port cluster to preserve their schedule reliability.
The recent rise in COVID-19 cases in China has resulted during a shutdown which will increase the already record cost of shipping goods out of China. The delays have already resulted in pressurizing soaring shipping prices within China thanks to a scarcity of containers and increased export demand. These high shipping costs are only one factor which will contribute to a further looming threat to global inflation.
Importers from the US and Europe must remain wary of the general deterioration of maritime trade lanes originating from China and plan their freight operations accordingly.