Shanghai congested ahead of May rate rises

25th April 2017

Shanghai congested ahead of May rate rises

 

The port of Shanghai has also been hampered by fog and changes in vessel schedules following the restructuring of schedules and vessel sharing agreements after the liner alliance system was rejigged at the start of April.

Some sources put current waiting times at Shanghai terminals at between 18 hours and 60 hours depending on terminal and service. However, last week that some vessels were being delayed by up to ten days.

Port manager Shanghai International Port Group (SIPG) last week said it had rescheduled some liner calls from its Guandong container terminal and Shengdong container terminal at Yangshan Port to its Hudong, Pudong and Waigaoqiao terminals. Some of our vessels have been impacted by the congestion at Yangshan Port due to seasonal bad weather,” We are closely working with Chinese ports to address any operational challenges, and we have been able to maintain a very constructive dialogue with our terminal partners.

Another factor in the congestion was improved access to the port of Shanghai via the Yangtze River. “The completion of river improvements along the Yangtze means vessels from western parts of China such as Chongqing can reach Shanghai more easily, which has increased the number of ships. Also, freight rates are expected to increase after 1 May and shippers are trying to push their production out to avoid increased freight costs.

Also changes in liner alliances and schedules had affected ship operations. As carriers switched terminals, this had left some facilities overloaded with cargo and others underutilised.
It is also the normal practice of Shanghai port to accept overbooked cargo at 120-130% of capacity, If alliances are changing terminals, then those containers which are not able to ship as scheduled will have great difficulty moving to a different terminal.”

 

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