The situation is adding to the severe lack of vessels, forcing carriers to blank sailings from China just at a time when these sailings could be generating record revenues. Zhejiang Material & Products’ LPG terminal is currently used by Huachen Energy and Zhejiang Huahong, and sometimes by Shaoxing Sanyuan. Shippers have experienced schedule changes and delays in Bangkok, Chittagong, Kolkata, Shanghai, and Ningbo. Severe congestion at Chinese port s is easing, say officials and industry participants, although a log jam of refrigerated containers has disrupted supplies of fresh and frozen food… An official at Zhoushan port, a major oil hub in eastern China, doubted that port congestion would ease by the end of August. Until plugs become available, cargo is held at transhipment port to ensure your reefer cargo remains in premium condition. Inventory at many terminals are currently at medium levels and deemed healthy, while recent port congestion was not attributed to brimming stocks, Chinese trade sources said. The Year of the Ox may have begun today, but more trouble lies ahead for container supply chains post-Chinese New Year. Import levels at the Port of Los Angeles are expected to be more than 29% higher this week compared to the same week last year. The liner shipping industry is facing unforeseenheavy port congestion and vessel delays worldwide. Meanwhile, new containers are still being loaded for China, particularly for goods like frozen pork, which is in high demand, even as prices rise due to soaring freight rates. Other than waiting outside Chinese ports, trade sources said some China-bound VLGCs were waiting as far as off Singapore waters during the busy period, though trade sources said this happens occasionally. In recent weeks Beijing has allowed more travel and offered financial support to companies to restart operations. Very Large Gas Carriers heading to the two terminals can share the same channel. “There’s both a space and equipment issue that we think could continue for four to eight weeks,” Madsen said, noting that fewer ships leaving China meant it was harder to return the reefers. China's oil port congestion to stretch on as record imports strain facilities Back to video July seaborne arrivals into the world’s biggest oil importer are expected to surge to 14.4 million barrels per day, Refinitiv analyst Emma Li said, well above record imports of 12.9 million bpd in June. An official from Busan Port Authority confirmed that the South Korean port that has taken some of the rerouted cargoes is seeing a decline in numbers. Port congestion is the result of high import volumes. Due to longer customs inspection of reefer imports, the port of Mawei Fuzhou, China is currently experiencing congestion, with most reefer plugs being occupied and supply is likely to remain tight until end 2020. Chinese and Indian demand, before the recent pause, had pushed the front-cycle CFR North Asia propane price to nine-month highs at $467/mt on Oct. 15, before retreating to $445/mt Oct. 16 on profit taking, S&P Global Platts data showed. The congestion was also caused by resurgent import of spot cargoes in recent months as new PDH plants come on stream, following the pause earlier this year after measures taken to contain the COVID-19 pandemic, traders said. And the week before Christmas, volume at the port … Chinese authorities tighten control of hazardous waste discharge annually during the national holidays, which fell over the first week of October in 2020. “Everyone is waiting for port capacity to fall from about 80 percent capacity currently to 50 percent to be more certain,” he said. 4 charts show the effects of West Coast port congestion and supply chain delays The ports of Los Angeles and Long Beach have been overburdened with a deluge of container imports over the last few months. ... Rizhao, Binzhou and Dongying ports, adding around 13.66 million cubic metres of tank space in 2020, according to Reuters calculations. Several new refining units also contributed to China’s record-high crude processing rates in 2020, as did the higher import quotas given to independent refiners—the so-called teapots—by the government. 2020’s Lead Up to 2021’s International Shipping 2020 ended with high demand in ocean freight shipping, severe port congestion, trucker shortages, and shortages of equipment – shipping containers in particular – making things difficult for U.S. shippers. Author By ... 2020. Please be informed that the Port of Mawei Fuzhou is currently experiencing congestion due to longer customs inspection of reefer imports. In a continued effort to provide its customers with reliable and efficient services, CMA CGM informs its customers that the Port Congestion Surcharge of USD 1,250 per Reefer container, applicable since November 18th, 2020 is to be cancelled as follows: PCS cancelled as from December 24th, 2020: From Worldwide; To Tianjin Xingang (China) In mid-February, about 10,000 reefers containing meat were stuck in Chinese ports, estimated a Beijing-based meat importer, about twice the usual level, though many of those have now been unloaded. By The Maritime Executive 09-24-2020 04:56:15 ... CMA CGM recently announced a new congestion surcharge for the port of Felixstowe as the port works to address its operational issues. Container lines are diverting reefer cargoes bound for Tianjin Port in China due to congestion caused by inspections and tests for Covid-19. China port congestion flares amid pre-CNY rush Keith Wallis, Special Correspondent | Feb 10, 2021 3:03PM EST Logistics executives said Shenzhen, Ningbo, Shanghai, and Dalian are among the worst affected, although delays are occurring at all major Chinese ports ahead of the new year holiday that starts Friday. After a lockdown on transportation in China, the shipping industry is sputtering back to life with severe shortages. Storage facilities holding crude stocks at major Chinese ports were close to full in July and August following a bargain purchase amid a collapse of oil prices in April due to the coronavirus pandemic. Chinese PDH plants’ theoretical processing margin was estimated at Yuan 1,840/mt ($270/mt) in September, up from Yuan 1,713/mt in August, according to Platts calculations. About a third of rerouted cargoes have been brought back to China, it added. Chinese buyers such as Oriental Energy, were also heard to have taken Middle Eastern cargoes, winning a tender from Qatar Petroleum offering 45,000 mt of propane for Nov. 12-14 loading, FOB. Spot, or short-term, freight rates have increased as much as 200 percent, he said, and are set to rise further. A severe shortage of pork in China following a disease epidemic has pushed imports in recent months to record levels, further squeezing the space available for reefers at ports. Source: Platts, China LPG port flows ease after congestion amid tight controls, military exercises, Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. ... Purchase the China AI Report 2020. US port delays force ‘structural’ blank sailings on Asian services ... [WASHINGTON] China's military executed a coordinated test launch of its top anti-ship ballistic … Severe congestion at Chinese ports is easing, say officials and industry participants, although a logjam of refrigerated containers has disrupted supplies of fresh and frozen food, and pushed up freight rates outside China. LPG imports in China have started to resume as ports eased from congestion caused by tighter management of discharging hazardous chemicals during the National holidays, while Chinese military maneuvers in several sea areas disrupted ship movements, trade sources said. For several months, China was smashing crude oil import records through the summer, and tankers had to wait for weeks to discharge the crude as port congestion was growing. China LPG port flows ease after congestion amid tight controls, military exercises ... which fell over the first week of October in 2020. Working moms, Kenya’s champion maker and a $69.3m Beeple pleaser, Austrian chancellor: Some EU states have secret vaccine contracts, Bulgaria latest to halt AstraZeneca vaccine; WHO says no need, Tanzania’s leader ‘receiving coronavirus treatment in India’, Sarah Everard: Met police face probe over suspected officer, Sarah Everard: Missing woman’s case sends UK into shock, How Portugal silenced ‘centuries of violence and trauma’, Al Jazeera Centre for Public Liberties & Human Rights. Maersk will apply effective tomorrow 7th February 2020 a congestion surcharge of USD 1,000 per container for ALL Reefer cargo arriving into Shanghai and Xingang to cover the additional cost of re-routing. For the first three quarters of 2020, China imported a total of 416 million tonnes of crude oil, data showed, or about 11.08 million bpd, up 12.7% from the same period last year. Seatrade Maritime Middle East Virtual 2020; Marintec China 2019; Nor-Shipping 2019 ... Asia and Asia-Europe trade growth and port congestion ... highest volume North and South China … S&P Global Platts Analytics had projected full-year imports at 18.5 million-18.6 million mt, about 1.3 million mt lower from 2019, largely due to the effects of COVID-19 control measures earlier this year. Traders had said that to meet latent demand during the period of congestion, there had been some reselling of cargoes to end-users. This was unlike in July, when stocks were as high as 85% and caused congestion, before easing to around 64% in early August, sources said. However, traders estimated total 2020 imports at 18.8 million mt, down 1.2 million-1.3 million mt from 2019. An official at Zhoushan port, a major oil hub in eastern China, doubted that port congestion would ease by the end of August. According to the Container xChange, US ports on the west coast, and further east in Chicago in particular, have struggled to cope with a surge in imports, putting West Coast facilities … Pork accounts for about half of Blue Water’s reefer business. More places to plug in the reefers had also become available and the company was no longer diverting cargoes on a large scale, it said. “There were staff shortages everywhere, at berths, among inspectors, truck drivers and at downstream companies. Thousands of refrigerated containers carrying meat, seafood and fruit from around the world to China have been stuck for weeks at the country’s ports after Beijing extended its Lunar New Year holiday and cities around the nation restricted free movement to curb the spread of the coronavirus. Dear Customer, In response to the improved reefer container congestion & plug utilization in the port of Xingang, OOCL will now accept reefer shipments to Xingang without charging a congestion surcharge (PCS). For more info go to our Cookie Policy, CENTURY HIGHWAY GREEN Next-generation Environmentally Friendly Car Carrier Fueled by LNG, MSC Bolsters Trade Between Southeast Asia And U.S. West Coast With New Sentosa Service, V.Group calls upon shipping industry to do more to attract talent to the sector, Marine Online’s Platform – The Answer To Today’s Chartering Needs, GateHouse Maritime Wins Contract to Monitor Gas Pipeline in the Baltic Sea, Guide for Carriage of Hazardous Materials, Subscribing I accept the privacy rules of this site, TECO 2030 to set up giga factory for production of hydrogen-based fuel cells in Narvik, Norway, Let’s Talk Training Programme- Module 4: Promoting Positive Mental Health and Reducing Stigma. The port congestion 2020 surcharges CMA CGM and MSC have added to Europe-origin cargo are $1,500 and $1,250 respectively. However, despite a recovery in port logistics and operations, the logjam has dampened the confidence of many exporters and importers who were waiting for less congestion to resume business. as of shipped on board date 23 rd December 2020. Following the holiday lull, Chinese importers were heard to have resumed buying, and traders said that China’s imports for the fourth quarter were forecast at 5.7 million mt, up around 6.8% on the year. In fact, a carbon-copy of the port congestion and landside disruption seen in China twelve months ago could be on the cards. Termination of Port Congestion Surcharge (PCS) for Reefer Cargos into Tianjin/Xingang Port, China. Those levels are expected to continue. Marcus Hand , Michele Labrut | Nov 24, 2020 Port of Long Beach. By continuing to use this site, you agree to our use of cookies. Sam Chambers July 24, 2020 4,918 1 minute read Chinese port congestion is approaching record levels thanks to rampant demand, dire weather and slower operations … Most reefer plugs are already being occupied, and supply is likely to remain tight until end-2020. Any regulated corridor will have effective date from 6th March 2020 We are seeing that port congestion has eased and logistics start to revive,” said Xu Kai, director of the Shipping Information Research Institute at SISI. CMA CGM has also introduced a peak season surcharge of $500 per teu from all Asian ports to Mediterranean and North Africa. High demand, high freight rates, and high port congestion can all be expected to start the year. German shipping company Hapag-Lloyd told Reuters in a statement that port congestion in China has eased, berthing operations have improved and terminals have resumed normal working conditions. This was affected by delays or deferments of US LPG following recent hurricanes, which some estimated at around 20 shipments. An official at Zhoushan port, a major oil hub in eastern China, doubted that port congestion would ease by the end of August. A ship owned by a major Chinese propane dehydrogenation, or PDH, plant operator was heard to have been affected by the military exercises, a market source said. Some ports chartered trains to bring truck drivers back to clear the containers. Experts says a growing number of containers, inefficient operations, and recent bad weather during 2018 are the major causes of this recent congestion … With many containers still tied up in Asia and shipping lines cancelling sailings, a large imbalance in reefer supply around the world is also pushing up freight rates, said Frank Madsen, global director of reefer and marine logistics at Danish freight forwarder Blue Water Shipping. Equipment shortages in Chinese ports, particularly Qingdao, Lianyungang, Ningbo and Shanghai have intensified over the last week with delays to vessels increasing the confusion and container shortages. Zhejiang Huahong operates a new PDH plant, which started operations in July. China imported more than 12 million metric tons of crude from Malaysia in 2020 and 2019, around twice as much as in 2017 before the U.S. sanctions were imposed, customs data show. The congestion at ports has some companies forgoing maritime shipping for airfreight to get popular or seasonal items on store shelves faster. Port congestion due to bad weather, growing container volume, and inefficient operations has been causing major congestion, and a back log within the shipping industry. This was unlike in July, when stocks were as high as 85% and caused congestion, before easing to around 64% in early August, sources said. December 22, 2020. But it’s getting much better now, as people are coming back,” said Zhang Ruxing, secretary general of the container division at the China Ports and Harbours Association. A Shanghai-based fruit importer, who asked to be identified only as Huang, said port congestion had eased and shipping lines were giving priority to perishable cargo. The startup of several new PDH plants has boosted China’s overall LPG imports to 1.92 million mt in August, up almost a quarter from July and 15.4% higher year on year, customs data showed. Sources said conditions at import terminals have now largely returned to normal, after the Golden Week break, when there was a brief hiatus in imports which allowed for stocks to ease. THE BUSINESS TIMES port congestion - Find port congestion News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. Demand from Chinese PDH plants was supported by profitable processing margins, keeping the average operating rate at 86% in September, and is expected to stay at a relatively high level in October as no maintenance schedules have been heard for the month. At least nine crude oil storage projects are planned in Shandong province at Qingdao, Rizhao, Binzhou and Dongying ports, adding around 13.66 million cubic metres of … Shanghai, the world’s largest container port by volume, and Tianjin have added 7,000 new spots to plug in reefers, expanding storage capacity for chilled cargoes by 40 percent, it said. Containers are seen on … With skeleton staffing at ports and few truck drivers available to transport cargoes onwards, refrigerated containers – known as reefers – were either stranded at already congested ports or redirected around Asia to find places where they could be plugged in to power to keep their contents fresh. Trade sources said Jiaxin port in East China had ships waiting outside the port up till the week ended Oct. 17, though this could be an isolated case, as there are two LPG terminals — operated by Zhejiang Satellite and Zhejiang Material & Products Chemical — at the port. Jumbo’s HLV Fairpartner transporting 10 TPs in one go. Inventory at many terminals are currently at medium levels and deemed healthy, while recent port congestion was not attributed to brimming stocks, Chinese trade sources said. Dec 04 2020, 8:31 AM Dec 10 2020, 4:45 AM December 04 2020, 8:31 AM December 10 2020, 4:45 AM (Bloomberg) -- China’s vigorous testing of all inbound frozen food shipments for virus risk, as well as the recovery in domestic hog numbers, could cause meat imports to plunge as much as 30% next year. Courtesy of Volvo Lights. Factory activity in China plunged to its worst level on record in February, and while more businesses have reopened in recent weeks, analysts do not expect activity to return to normal until April. About 18,000 20-foot equivalent (six-metre) unit (TEU) reefers were still at Shanghai and Tianjin ports as of March 6, the port association said this week, down from 27,000 in mid-February. Asia import growth in 2020 concentrated in largest US ports 28 Jan 2021 After a sluggish start to the year, US imports from Asia came roaring back in the second half, with an even higher concentration than usual flowing through the largest container gateways.