Concerns Over Second Global Logistics Crisis in China... Container Freight Rates Expected to Rise Further

Increased Congestion at US Ports Including Long Beach, Average Berth Waiting Time 7.6 Days
Truck Driver Shortage Due to COVID-19 Spread, 40% of Containers Not Retrieved

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's state-run Global Times reported that the number of vessels waiting to dock at the Los Angeles (LA) and Long Beach ports in the United States has reached 44, raising concerns about a second global logistics crisis. The congestion at U.S. ports may continue until next year, warning of further increases in container shipping rates.

The Global Times reported on the 31st that due to the spread of COVID-19, the average waiting time for ships at Long Beach Port, a gateway to the U.S., has increased from 6.2 days to 7.6 days. The media added that Chinese export companies are refusing orders from the U.S. due to port congestion caused by unloading delays, rising container shipping rates, container shortages, and a shortage of truck drivers.

In this regard, Maersk, the world's largest shipping company, explained that "the waiting time for ships at LA and Long Beach ports has increased from 5 days to 12 days, intensifying port congestion," and that the waiting time at Seattle Port is as long as 15 days.

The media cited port experts saying that 7 out of 10 major U.S. ports are severely congested, with a shortage of personnel responsible for unloading due to COVID-19 prevention measures being a major cause.

According to DeCart Data Mine, a U.S. customs investigation company, the number of containers shipped from the Asia region to the U.S. last month reached 1.71 million, a 10.6% increase compared to the same period last year, marking a monthly record high. Of these, 1.02 million containers, or 60%, were shipped from China.

Wu Minghua, a Shanghai shipping industry analyst, explained that "4 out of 10 containers sent to the U.S. have not been returned," pointing out that the container shortage is also a factor limiting cargo movement. He further emphasized that the shortage of truck drivers transporting containers from ports to across the U.S. is a major cause of port congestion.

An official from a company exporting home appliances to the U.S. explained, "Although U.S. orders have increased by about 50% compared to last year, we are not accepting additional orders because we cannot meet delivery deadlines." Another company official said, "Due to U.S. port congestion, we can no longer accept Christmas orders at the end of the year."

The Global Times predicted that port congestion in the U.S. has disrupted not only China but the entire Asian supply chain, and that the port congestion situation could continue until next year due to the spread of COVID-19 in the U.S.

The global logistics system experienced major disruption in March due to the container ship capsizing accident in the Suez Canal. Additionally, partial closures and significant increases in container shipping rates occurred when COVID-19 cases were confirmed at Yantai Port and Ningbo Zhoushan Port in China. In fact, the Shanghai Containerized Freight Index (SCFI), which was 2583.87 points in March, recorded 4385.62 points as of the 27th.

This content was produced with the assistance of AI translation services.