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Port congestions will take a while to subside

Delays by a couple of days will be a norm

The prevailing congestions at Yantian port worried big carriers, particularly Maersk. The company hinted at delays from bottlenecks becoming a global norm in a statement.

May be only temporal
Yantian ports are dominating the maritime spotlight with its outbreaks and precautionary measures resulting in bottlenecks. Ship diversions threw the rates off-balance till shippers are in a massive conundrum; to ship or not to ship. Singapore-based clothing firm Genesis Group Pte Ltd is one company that halted shipping. Its supplier in Dongguan ceased operations due to the pandemic. Bloomberg’s vessel data showed there are currently 139 vessels anchored off the coast of China, about 50 per cent more than the average from mid-April to early May 2021.

Maersk appears to be alerting of a new norm. In a release, it warned about the worrying trend with unceasing congestion becoming a global problem. “Due to COVID-19 and a significant volume push since the end of last year, terminals are becoming global bottlenecks. Be it at berths, yards or gating out cargo, it is continuing through the logistics chain – in the warehouses, distribution centres with numbers on the rise. Yantian is currently the most prominent bottleneck but waits of one or two days became a norm at many other ports,” the carrier said.

Bjorn Hojgaard, CEO of Anglo-Eastern Univan Group shared the same sentiments, albeit with some optimism. He noted, “There are bottlenecks in ports worldwide because of COVID-19 outbreaks. It is taking longer for shipping to recover than what was expected a few months ago. I am hopeful of a recovery in Q4 21 and Q1 22 in many parts of the global economy and shipping.” Anglo-Eastern Univan Group manages a fleet of 700 vessels.

 

Marine Online Media Team
Please email us at marketing@marineonline.com to contact the author for this article.

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