Update on the Growing Congestion in China
With growing delays and congestion in China, Stockwell International would like to give you some clarity on the issue.
Experts are warning that the recent lockdowns in China is about to send another shock through global supply chains. Currently nearly one-third of the population is under some sort of lockdown, with shops shut and factories struggling.
A Nomura survey has shown that at least 373 million people in cities contributing to 40% of China’s GDP have been affected. An index tracking freight traffic in China dropping by about 25% during the first week of April.
Shanghai, home to the world’s largest port, has remained open, however trucks are struggling to unload cargo due to strict permit regulations, causing shipping containers to stack up. According to Jon Monroe, an ocean shipping and supply chain expert said once lockdowns end, there’s going to be an “overwhelming movement of goods” that cripples supply chains.
Other industry professionals are saying they don’t see any immediate end in sight to production and logistics disruptions in the country either.
“The supply-chain situation in Shanghai continues to worsen. The port is running out of capacity for some types of cargo as importers cannot collect their goods,” Lars Jensen, CEO of shipping industry advisor Vespucci Maritime. “With the outbreak in Guangzhou also leading to shutdowns there, the impact on export volumes out of China will grow larger.”
Loadstar, a supply chain publication, on April 19 reported that about 506 containerships were waiting off Chinese ports, an increase from 260 halted offshore in February.
Globally the impacts of these lockdowns are being felt in ports in Europe and the US where they are bracing for the wave of backlogs starting to ease in Chinese ports. Some ports in these areas are reportedly experiencing additional disruption as shipping operators adjust routes. An example of this is the US ports of Los Angeles and Long Beach, which already suffer significant delays and capacity constraints, have reportedly seen a combined 35% increase in containership backlog.
As delays continue to build and understandably frustration begins to mount, Stockwell International are endeavouring to alleviate as much stress and pressure as possible. If you have any further questions, please contact [email protected].
USA Terminal Operations Update
Due to increased volume, we are experiencing congestion issues at the following terminal locations New York, Norfolk, Savannah, Miami, Houston, Oakland, and Los Angeles/Long Beach.
U.S. East Coast
- New York – Vessel waiting time is 2-10 days due to severe berth congestion.
- Savannah – Vessel waiting time is 2-4 days due to certain level import volume.
- Miami – Vessel waiting time is 2-3 days due to high level of import volume and holiday closures.
U.S. Gulf Coast
- Houston – Vessel waiting time is 2-8 days due to high import volume, labor shortage and vessel bunching.
U.S. West Coast
- Long Beach – Vessel waiting time is 16 days due to high import dwell and labor shortage.
- Los Angeles – Vessel waiting time is 17 days due to yard congestion, high import dwell and labor shortage.
- Oakland – Vessel waiting time is 10 days due to high import volume, labor shortage. Yard utilization is at 90% of capacity.
- Seattle – Vessel waiting time is 2 days due to high import volume, labor shortage.
Canada
- Prince Rupert – Vessel waiting time is 14 days. Yard utilization is at 113% of capacity.
- Vancouver – Vessel waiting time is 28 days. Yard utilization is at 100% of capacity.
Congestion is still being experienced at all major rail facilities in Chicago, Columbus, and Los Angeles UP and BNSF rail ramps.
U.S. East Coast
Charleston Chassis Shortage – Due to a continued shortage of available chassis in the Charleston markets (Atlanta, Charleston, Jacksonville, Nashville, and Savannah) we are experiencing extended delays in pick-ups, deliveries, and drayage to/from the rail facilities.
South Carolina Ports Authority – Due to increased volume for Import and Export cargo into Charleston, SCSPA is reporting a delay in operations between the terminals and railroads. There is currently an embargo for all export units from Greer Ramp to USCHS/USNTS except for certain customers.
U.S. Mid-West
Houston Chassis Shortage – Chassis deficits continue to be reported on a weekly basis
due to ongoing congestion in the area. TRAC chassis can be utilized as our approved secondary provider.
Chicago Chassis Shortage – Due to a shortage of available chassis in Chicago, we continue to observe extended delays in pick-ups and deliveries.
Chicago Rail Ramp Congestion – CSX Railroad has advised that congestion remains an operational
concern.
U.S. West Coast
Increased Dwell for Import Rail Cargo (SEA) – Due to severe terminal congestion, we continue to observe operational delays, resulting in extended dwell time.
Equipment Availability
Due to increased volume at terminals and inland rail facilities, there have been ongoing chassis shortages resulting in pickup delays and deliveries. Most notably, we are encountering chassis availability issues in the Long Beach/Los Angeles, New York, and Philadelphia terminals, and the Cleveland, Columbus, Louisville, Nashville, St. Louis, Atlanta, Chicago, and Memphis areas.
Truck Order Lead Time (days)
Due to the increased volume, we are experiencing reduced trucking capacity in most areas in North America. This will result in delays picking up and delivering cargo. Please reference trucking dispatch heat chart to indicate dispatching time for each major area.
General Rate Increase & Facility Administration Fee
General Rate Increase
5th June 2022
All North American CFS to Australia & New Zealand
USD 6.00 w/m (min USD6 per BL)
Facility Administration Fee
6th June 2022
All North American CFS to Australia & New Zealand
USD 15.00 w/m (min USD75)
