Sea freight: congestion in the port of Yantian, China

Alix Thong, Head of Maritime Purchasing, explains the paralysis in maritime freight in the past few weeks.

“Another issue arose in late May, adding to an already difficult context: the port of Yantian, which is located east of Shenzhen and is the world’s 44th largest container port, was partially blocked after a COVID-19 cluster was detected among dockworkers.

It was all that was needed to place the world economy in jeopardy once again.

This port usually handles about 55,000 TEU per day, but is currently at 25,000 TEU.

Its capacity has been reduced by more than half!

This is without taking account of the many existing port congestion issues in southern China, with increasing blank sailings and rollovers, and soaring freight prices (there is talk of rates exceeding 20,000 USD/40’HC).

Shipping companies are also “taking advantage” of this shortage and offering “premium” rates to maximize the chances of filling ships, without guaranteeing the loading of cargo.

Delivery times and freight prices will be affected and it could well be several months more before the situation returns to normal.

All this points to likely shortages of goods in Europe and the United States.

However, DIMOTRANS GROUP is able to implement and provide alternative solutions such as rail transport, which remains an option, even if space is becoming harder to find.

There is also the possibility of transferring cargo by truck in order to load via other, less congested ports.

Depending on the type of goods and the urgency, air transport can also be a one-off solution.”

Of course, DIMOTRANS Group is doing its utmost to meet the needs of its customers and handle requests in the best way possible by offering tailored solutions on an ad-hoc basis.