An upsurge in COVID in the province of Guangdong has resulted in extended delays in handling containers at the ports of Nansha, Shiwan and Yantian. Delays at the last-named port are now at 16 days. The number of container vessels waiting approval to dock has more than doubled to 50 compared to June 2020.
Delays and demurrage have imposed higher costs on shipment with freight rates from China to the EU rising to $11,000 per 40-foot container. The Baltic Dry Index reflects the escalation in sea-freight. On February 9th the low for 2021 to date, the Index was at 2,104. A sharp 5 percent escalation in recent weeks raised the Index to 3,176 on June 16th
CHICK-NEWS reported on the problem of availability of containers to be filled by producers of agricultural commodities and products to be shipped to China and other Asian nations. Vessels are undergoing rapid turnaround in West coast ports and are dead-heading with empty containers to the detriment of U.S. exporters.