Weekly Ocean Operations Update: Asia to Europe, US and Australia 11/11/22

Chinese container ports have achieved a 4% container volume growth during the first nine months of the year, compared with the same period in 2021. China's box ports have handled 219.3 million TEUs from January to September 2022. The Ports of Shanghai, Ningbo & Zhoushan and Shenzhen remain the busiest container hubs of China with 35 million TEUs, 26 million TEUs and 22 million TEUs, respectively.

Shanghai Port Update:

• Port operations are currently normal
• Vessel waiting time is 0-4 days due to carrier sailing adjustment
• No equipment availability issues noted; all container types are available.
• No weather disruptions
• No capacity issues

Yantian Port Update:

• Port operations are currently normal.
• Vessel waiting time is 0.5-1 days 
• 40HC NOR / 45’HC shortage
• No weather disruptions.
• No capacity issues.

Ningbo Port Update:

• Ningbo Beilun resume operation as normal, per COVID preventive rule, all drivers who arrange empty pick up and laden units require Green code with 48 hrs Negative Nucleic Acid test before enter the terminal.
• Vessel waiting time is 1-4 days due to port congestion
• No equipment issues
• No weather disruptions
• Capacity is tight

Qingdao Port Update:

• Port operations are currently normal
• Vessel waiting time is around 1 day
• No equipment issues
• No weather disruptions
• No capacity issues

FEWB Rate and Capacity Update:

Oceania Rate and Capacity Update:

TP Rate and Capacity Update:

Blank Sailing Updates:

Australia
EU
USA

Market Intel: EU

• Cargo demand on the main East West trades has reportedly dropped 10% since August, with Container Trades Statistics indeed reporting a 7.2% volume loss for the carriers on the Asia - Europe trade that month. With spot rates falling 77.4% since their peak on 7 January and accelerating rate erosions in recent weeks, the market now seems to be heading towards a ‘hard landing’ instead of the expected ‘normalization’. (Source: Alphaliner）
• Shipbroking sources claim that CMA CGM ordered four 24,000 teu ships at CSSC’s Group’s Hudong-Zhonghua yard. (Source: Alphaliner)

Market Intel: Oceania

Terminal and port updates South East Asia

• Singapore: minimal congestion with delays approx 1 day
• Port Kelang: minimal congestion with delays approx 0.5-1 day

(Source: ANL)

Market Intel: USA

U.S. Reshoring Trend Could Reduce Asia-originating Shipments up to 40% by 2030
U.S. companies have indicated that reshoring is accelerating. According to a report, Deloitte said some 62% of manufacturers it surveyed have started reshoring or nearshoring their production capacities. The survey included 305 executives at transport and manufacturing firms, mostly in the U.S., with annual revenue of $500 million to more than $50 billion (see Figure 1).

Respondents to the survey anticipate a significant share of Asia-originating freight to move onshore or nearshore to alleviate supply chain challenges and improve competitive positioning (see Figure 2). According to figures cited in Deloitte’s ‘Future of Freight’ report, American firms are expected to reshore almost 350,000 jobs in 2022, up 25% from 260,000 in 2021. Transportation executives anticipate 20% of Asia-originating freight will move to closer-proximity markets by 2025, doubling to 40% by 2030, the report said.

(Source: Shipco)