Ports in southern China impacted by Covid-19 lockdowns (YANTIAN/ SHEKOU/HONG KONG/ NANSHA/HUANGPU) are further disrupting the global box trade and have seen a significant slump in container availability over the last two weeks.
It is estimated that more than 600,000 TEU’s have been affected by the fallout from a Covid-19 epidemic around the port of Yantian in southern China.
Ports around the world are poised for a severe shortage of equipment in the weeks to come.
Ocean carriers are rolling out more rate increases next week, with FAK rates from Asia to North Europe edging towards $20,000 per 40ft.
This represents an incredible 1,000% increase on the spot rate compared to a year ago.
Meanwhile, transpacific carriers hit Asia to US shippers on June 15th, with GRI’s of up to $3,000 per 40ft, with some carriers now asking $17,000 per 40ft for US east coast ports.
Asia to North Europe rates climbed a further 5%, to around $16,000 per 40’ container.
The Yantian and other ports in South China lockdown will have a much larger impact upon the flow of goods in the transpacific than the Suez Canal blockage.
Importers will be severely impacted as their containers sit in South China for weeks on end with little or no access to vessels.
And when the backlog in China eases, the pressure will still be on the US west coast ports.
The congestion at southern Californian ports had shifted from shipside to landside, specifically due to rail carriers being unable to clear the terminals containers.