Typhoon series hits ports in East China

Recently, consecutive typhoons have hit Shanghai Port and Ningbo Zhoushan Port, causing significant impacts on their operations. Terminal operations have been interrupted, ships have been concentrated and stranded, and port backlog has rapidly increased. The risk of disrupted shipping schedules has spread throughout the entire supply chain, and foreign trade export enterprises need to pay close attention to the pace of shipments and supply chain risks.

Due to the successive impacts of typhoons "Bawei" and "White Dolphin", container transportation capacity in North Asia has been greatly hindered. According to Linerlytica, a shipping data agency, the current capacity of approximately 2.4 million TEU container ships in North Asia is delayed or stranded, with ports in East China being the most affected. Multiple ports have experienced over 60 hours of comprehensive shutdown operations, resulting in obstacles to the entry of heavy containers for export. Container loading and delivery operations have been completely suspended, and the original logistics plan has been forced to be significantly delayed.

Before the arrival of the typhoon, the pressure on port operations was already at a high level. The average waiting time for ships at major ports in Shanghai is 4.4-8 days, with some ports reaching up to 8-12 days, and the yard density is maintained at 75% -90%; The average berthing and waiting time for ships at Ningbo Zhoushan Port is 2-3 days, and the utilization rate of Meishan Port yard is close to 90%. Due to the prolonged suspension of operations, industry organizations have estimated that the backlog of goods awaiting processing in the two ports may exceed 400000 TEUs.

With the improvement of meteorological conditions, major ports have resumed operations one after another. The Waigaoqiao Port Area of Shanghai Port resumed heavy container operations at 2:00 am and empty container operations at 8:00 am on August 11th, while the Yangshan Port Area officially opened on the same morning; Starting from 4:00 pm on August 10th, core ports such as Beiyi, Bei'er, Meidong, and Daxie in Ningbo Zhoushan Port have gradually resumed heavy container loading and unloading services.

But the resumption of port work does not mean that the backlog problem will be immediately resolved. After resuming work, there will be a "lifting of restrictions". A large number of ships waiting to dock have arrived at the port in a concentrated manner, and trucks have flooded into the port area in a short period of time, causing the terminal to enter full load operation directly. After the resumption of traffic on the Donghai Bridge, the daily traffic volume of container trucks approached 30000 vehicles, and during peak hours, multiple international liner ships were waiting to enter the port simultaneously. Market predictions suggest that after the resumption of work at Shanghai Port, the waiting time for ships to berth may be extended to 7-10 days, and the waiting time for some berths in Yangshan may exceed 10 days.

There are also many variables at the on-site operation level. Some of the storage yards have experienced water accumulation, and there are occasional instances of water buildup inside the containers during container retrieval; The overall turnover efficiency of container loading and unloading in Beilun, Meishan, Daxie and other port areas has decreased. In the coming weeks, port reservations, gate passage, vessel berthing and disembarkation, and vessel scheduling will continue to be under pressure.

The crowded arrival of ships at the port further increases the risk of port hopping, container dumping, and voyage cancellations. Some shipping companies, in order to catch up with the sailing schedule, have taken emergency measures such as adjusting the port of call and changing the route, resulting in many exported goods facing situations such as skipping ports, abandoning containers, and changing ships. As a result, various additional costs have risen, such as demurrage fees, drop off fees, demurrage fees, and amendment fees. In addition to facing delivery delays, enterprises also need to bear additional logistics costs.

Driven by the decline in port operation efficiency and the traditional peak shipping season, the freight rates of the trans Pacific route have been supported, and the performance of the US East route has been particularly strong; The price increase space for the US West route is relatively limited due to the increase in new capacity. Industry analysis suggests that if the progress of backlog digestion in East China ports falls short of expectations, shipping companies may continue to regulate effective capacity to control cabin space, and market freight rates may remain high.

In response to the current port disturbance, the following practical suggestions are given to foreign trade export enterprises:

Firstly, during the resumption of work phase, do not blindly stack and deliver containers. Flexibly arrange the arrival of heavy containers based on the open status of the port, reservation system, and road conditions to reduce ineffective waiting.

Secondly, strengthen communication with overseas purchasers, proactively synchronize the latest shipment trends, manage expected delivery times, properly retain terminal announcements, shipping company notifications, transportation trajectories, and various expense documents for subsequent business verification.

Thirdly, sufficient logistics buffer period must be reserved for pending orders, priority should be given to booking in advance, and the original ETD should not be used as the sole basis for scheduling and delivery. Real time information such as expected vessel berthing, port cut-off, VGM deadline, etc. should be synchronized frequently.

Fourth, continue to follow up on the adjustment of the shipping company's berthing, cabin supply, and container equipment situation; High time demand goods, negotiate with overseas customers in advance to relax the delivery window period, and jointly cope with the supply chain uncertainty caused by the combination of peak season and extreme weather.

Foreign trade enterprises need to closely monitor port dynamics, flexibly adjust shipping plans, and minimize business losses caused by typhoon disturbances.

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