Asia Weekly Operations Update 16/09/22

Shanghai Port Update: 

• Port operations are currently normal. 
• Vessel waiting time is 3-12 days due to the typhoon impact
• No equipment availability issues noted; all container types are available.
• Weather disruptions caused by the Typhoon 
• No capacity issues.

Yantian Port Update: 

• Port operations are currently normal.
• Vessel waiting time is 1-2 days.
• No weather disruptions.
• Capacity is normal. September is usually the peak season before the National Holiday, but the EU energy crisis has heavily reduced Europe’s consumption and production, weakening demand for transportation capacity in, through and out of the region. However, blank sailings in October may give freight a bit of a push.

Ningbo Port Update: 

• As per COVID rules, all drivers who arrange empty pick up and laden units require a Green code with a 48hrs Negative Nucleic Acid test before entering the terminal. Yiwu city is in lockdown from 11 August due to a break out of covid cases. Haulage service is not available in Yiwu city until recovery.
• Vessel waiting time is 5-6 days due to port congestion and the closure of the port due to Typhoon Muifa.
• No equipment availability issues noted; all container types are available.
• Weather disruption caused by the impact of Typhoon Muifa.
• Capacity is quite tight, leading to vessel operation timelines changing on occasion. 

Qingdao Port Update: 

• Port operations are currently normal.
• The Covid situation in Qingdao is in control. Nucleic Acid testing required every 4 days is the new normal.
• Vessel waiting time is 1-2 days.
• Most shipping lines have sufficient equipment.
• No weather disruptions noted.

FEWB Rate and Capacity Update:

Oceania Rate and Capacity Update:

TP Rate and Capacity Update:

Blank Sailing Updates:

• Australia
• EU
• USA

Market Intel: Australia

Market Intel: EU

• 2M announces Asia - North Europe blanking program. During and after the Golden Week holiday in China, the partner carriers plan to skip nine sailings of their joint 2M Asia - North Europe loops in weeks 37 to 41.

• (source: Alphaliner)

• China’s Jiangnan Changxing Shipyard, a subsidiary of CSSC Hudong Zhonghua, this week delivered the 24,004 teu EVER ARIA. Evergreen’s new vessel will start her career on the carrier’s Asia - Europe service ‘CEM’, which is also known as the OCEAN loop ‘NEU6’.

• (source: Alphaliner)

Market Intel: USA

• Pending rail strike: US Freight railroads are preparing for a possible strike to commence on Friday 16 September. Considering this, the railroads have begun to reduce service since Monday 12 September, 2022. Even if an agreement is made by Friday, 16 September, we do expect some rail service disruptions and delays due to the announced service reductions by the railroads.
• Vessels continue to be pushed further off the proforma schedule causing blank sailings, and the continuous increase of import volume within the past two years has affected operations in almost all areas of the country, creating delays.
• The current events in Ukraine are impacting vessel routing, schedules, ports, and rails, especially in Eastern Europe, aggravating delays and congestion.
• COVID-19 sequels, labor shortage, labor strikes at ports and rail companies, climate change and strong demand still impact the global supply chain. Lead times remain extended.
• With all of the recently mentioned events, there is a high number of container vessels currently congested at different ports around the world, affecting logistics services overall.
• Within the past few months, port congestion has increased on the East Coast and Gulf Coast ports, especially in Savannah and Houston mainly due to an increase in imports from Asia. Container availability in the USA is tight in the areas of the South Atlantic Coast and Gulf Coast.
• Limited trucking and equipment availability are among the main challenges across the supply chain.
• (Source: Shipco)