Congestion in 116 ports around the world! ​The increase in freight rates will continue into the first half of next year!

At present, the term "congestion" is frequently mentioned. Port congestion has spread to major ports around the world, and more and more container ships on five continents are waiting for berths.

There are 328 ships stranded in ports around the world, and 116 ports have reported congestion!

A map released by seapexplorer, a container transportation platform created by logistics giant Kuehne+Nagel, highlights the current ultra-high pressure scenes in various container ports around the world.

As of yesterday afternoon, there were 328 ships stranded in ports around the world, and 116 ports had reported problems such as congestion.

Data from the seapexplorer platform a month ago showed that 304 ships were affected by congestion in 101 ports. Obviously, congestion has increased further.

In the past month, as the backlog of cargo in the salt fields of South China has been cleared, one of the important notable changes is that the number of ships waiting outside the two ports of Los Angeles and Long Beach, thetwo largest sea gateways in the United States, has increased by one. 

According to the latest statistics, 18 ships lined up off the coast of Los Angeles, waiting for an average of nearly 5 days for berths. According to data from the Pacific Merchant Shipping Association, containers stayed at the Los Angeles-Long Beach Terminal for an average of 4.76 days in June, up from 3.96 days last month.

Griff Lynch, executive director of the Georgia Port Authority, said strong demand for imported goods may continue until 2022. Because during the uneven rebound of the epidemic, companies are scrambling to rebuild inventories.

Tight shipping capacity has pushed ocean freight rates up to four times what they were before the pandemic.

Port congestion and rising freight rates may become the main theme in the first half of 2022!

At the end of May, Yantian Port encountered an epidemic, causing some terminals to suspend operations for 4 weeks. In recent weeks, due to the rampant epidemic, ports in many other countries and regions have also faced tremendous pressure.

For example, since last Sunday, the southern port of Vietnam has been blocked due to the epidemic, and more and more ships are waiting to dock.

Since July 18th, Union Pacific, the largest rail operator in the United States, has suspended shipping containers from West Coast ports (Los Angeles/Long Beach, Oakland, Seattle, and Tacoma) to the inland, especially Chicago, for a period of 7 sky.

Chicago is the largest railroad hub in the United States and has been at the center of congestion on the rail network. There are reports that some containers have been stranded in Chicago for six or seven weeks.

One reflection of the overburdening of the U.S. rail network is the dramatic increase in the number of imported container transshipments from the West Coast to the Midwest. Trucking is also tight. Shippers have reported supplier embargoes, restrictions and surcharges to control capacity. These situations often occur in the parcel and LTL industry.

However, the Pacific Merchant Shipping Association (PMSA), which represents the West Coast liner company and marine terminals of the United States, expressed concern about the suspension.

PMSA said that the suspension of the plan will increase the current cargo backlog at the terminal, which will cause railway cargo to continue to dock at the terminal, thereby increasing congestion.

"If you consider the recent interruption of Yantian Port, port congestion and rising freight rates may become the main theme in the first half of 22. The risk of further outbreaks in major hub ports will always exist, especially considering the spread of new virus mutations." Drewry The consultant warned in a recent report.

Turloch Mooney, deputy director of maritime and trade at IHS Markit, said: "The situation has not improved and is worrying."

"The reliability of the shipping schedule is still far below the level before the epidemic. Considering the rapid growth of freight volume, the full-load operation of many terminals, and the continuing problem of equipment repositioning, it is difficult to see a substantial improvement in the situation in the short term."