Container ships stranded near the Port of Los Angeles/Long Beach have been making headlines recently. However, there is another maritime traffic jam that is also serious and occurs in the Yangtze River Delta region of China. It has nothing to do with container ships but dry bulk carriers.
Congestion among bulk carriers has now reached an all-time high as China implements stricter epidemic prevention and control measures on arriving ships. Every bulk carrier blocked in China means one less cargo ship carrying U.S. soybeans, corn, wheat and coal. It also means that spot freight rates for U.S. commodity exports will be pushed up.
Recently, Grindrod Shipping CEO Martyn Wade said in a conference call with analysts: “The level of congestion in China is shocking.”
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Highest congestion record: 1,692 bulk carriers!
According to Nick Ristic, chief dry cargo analyst at Braemar ACM Shipbroking, as of mid-August, there were 1,692 bulk carriers waiting in line around the world, with a total capacity of Reaching 142 million tons. This is the highest level on record and represents a year-on-year increase of approximately 15%. So far, the number has dropped only slightly to 1,652 vessels, totaling 129 million dwt.
Ristic said that the global congestion of dry bulk cargo accounts for more than one-third of the total global dry bulk cargo volume. In mid-August, China’s bulk carrier congestion reached 52.7 million deadweight tons, accounting for 6% of global shipping capacity, an increase of 28% from mid-July and a year-on-year increase of 23%.
Congestion rates outside China are also high, but consistent with seasonal norms.
The hot spot in China is the Yangtze River Delta. Congested bulk carriers in the Yangtze River Delta region account for approximately 18% of China’s total bulk carrier congestion, which has become a particularly serious bottleneck. The total congestion in the Yangtze River Delta region accounts for almost one-third of China’s total congestion, including handy bulk carriers and very large ships.
Bulk carriers in the Yangtze Estuary:
Port epidemic prevention and control Measures have slowed the passage of bulk carriers
Congestion in container shipping is mainly caused by changes in consumer spending, while congestion in dry bulk shipping is mainly caused by port epidemic prevention measures.
COVID-19 containment measures have caused delays for bulk carriers throughout the year, but the emergence of the Delta variant in Chinese ports this month has pushed delays to a whole new level. level.
Ristic said, “It is reported that regardless of how long the ship has been at sea since its last port call, the authorities will use the nationality of the crew, the time of boarding, the sailing route and the number of people on board. Cargo and other factors assess their risk level. In addition, quarantine measures have significantly reduced the number of crew members operating at sea, to 50% less than normal levels.”
“In other ports, We have also heard reports of mandatory quarantine periods, no cargo handling until a negative PCR result, and other protocols.”
According to Argus Media reports, many coastal ports in China require Imported cargo is required to undergo a 14-day quarantine before berthing after departing from ports in other countries, including Indonesia, India and Laos.
Ports such as Nanjing and Changshu along the Yangtze River require 21 days of quarantine.
Zhoushan Port’s Liuheng Terminal requires up to 28 days of quarantine. All crew members must be tested for COVID-19 before the vessel is allowed to unload cargo. </p
