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Home > News > Policies > Shipping in South China is even more difficult, and the soaring freight rate shocked the market!

Shipping in South China is even more difficult, and the soaring freight rate shocked the market!

ECHEMI 2021-06-08

According to the latest news, Guangzhou’s current epidemic prevention requirements are that citizens should not leave Guangzhou or leave the province unless they are necessary. From 12 o'clock on June 7th, if they really need to leave the Guangzhou or leave the province, they must have a negative certificate of nucleic acid test within 48 hours.

Shenzhen’s requirement is that from 12 o’clock on June 7th, a 72-hour nucleic acid negative certificate and a green code are required to leave the province of Shenzhen; Guangzhou and Foshan ID cards or those with a history of residence in Guangzhou and Foshan within 48 hours must be provided within 48 hours. Certificate of negative nucleic acid test.

The current local epidemics in Guangzhou and Shenzhen have severely affected foreign trade shipments in southern China.

Yantian Port slowed down operations and delayed shipping schedules
Since May 31, the Yantian International Gate has resumed receiving heavy export containers in an orderly manner, and implemented a "no appointment, no entry" system as required.

The arrangements for the arrival of heavy export containers after June 6 are as follows:

Starting from June 7th, we will continue to maintain the export heavy container that only accepts ETA-3 days (that is, within three days before the expected arrival date of the ship); continue to strictly implement the "no appointment, no entry" system, please be sure to tow the trailer before submitting the export heavy container Make an appointment on the Peng Shipping "Easy Pickup Counter" APP or the terminal "Port Arrival Declaration" APP, and you can enter the port only after the appointment is successful.

At present, there are about 40 container ships waiting for berths in Yantian Port, and there is a backlog of about 23,000 export containers. Shipping companies such as Maersk, MSC, ONE, Hapag-Lloyd, etc. have issued notices of port skipping and cancelled the berths to Yantian International Container Terminal. When docking, Maersk even cancelled the docking at nearby Shekou Port.

Maersk stated in a customer consultation report last Thursday that the productivity of the eastern port of Yantian International Container Terminal has dropped to 30% of the normal level, and all operations of the western port of Yantian will be suspended until further notice. Maersk expects Yantian International’s ship delays to be “more than 14 days”. At the same time, the new crown pneumonia preventive measures in Shekou Port are now restricting the transportation of export containers.

Nansha Port blocked into a parking lot
Affected by the congestion and port hopping of Yantian Port, a large number of South China cargoes diverted to the surrounding Shekou Port and Guangzhou Nansha Port. However, a large number of Shenzhen drivers who went to Nansha Port were unfamiliar with their place of origin—unfamiliar with gate procedures, internal driving rules, storage yard location, etc., which affected the efficiency of terminal operations.

To make matters worse, Nansha was subsequently closed!

According to the WeChat official account "Released by Guangzhou Nansha", in order to cooperate with the nucleic acid testing work for all employees, from 14:00 on June 5, 2021, the operation of urban buses, subways, ferries, and long-distance passenger transportation in the whole district will be suspended; no special reason, citizens should not After leaving, the high-speed expressway, high-speed rail, terminal, etc. all away from Nansha Passage will be temporarily closed, and the recovery time will be announced separately.

Yantian Port issued a notice on June 6: "According to the government's epidemic prevention requirements, all drivers entering Hong Kong must present the Yuekang code and itinerary code. Drivers and vehicles that are not green codes and have recently been to Nansha Port are prohibited from entering the port; today Start execution, please cooperate."

Shekou/Chiwan Port Latest Notice
Shekou/Chiwan requires that from 0:00 on June 9th, a nucleic acid test report within 3 days must be provided when entering the terminal, otherwise they will not be allowed to enter the port.

Consolidation rates have risen astonishingly
Now, some foreign traders who are in a hurry to ship the goods have begun to pull the goods to Xiamen Port, or are willing to spend more money to go to Yangshan Port, and some even simply change the railway transportation.

However, these remedial measures also mean that transportation costs have risen again.

Insiders believe that the impact of the local epidemic in southern China on the international shipping market is no less than the blockage of the Suez Canal.

In May, Hapag-Lloyd took the lead and decided to increase the GRI of the Asia-North America route from June 15 to a maximum increase of US$3,000 per 40-foot container.

On June 2, the world's second largest shipping company, Mediterranean Shipping MSC, issued a price increase notice immediately afterwards.

On the same day, COSCO SHIPPING announced the Asia-Europe Peak Season Surcharge (PSS) notice, with an increase of US$800/container.

This week's Baltic Sea Freight Index (FBX) is equally astonishing, with the Asia-Northern Europe route even rising by 11%!

In the short term, the high-fever shipping market will not be able to get rid of the fever.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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