According to an analysis by CargoSmarts, between April 16 and April 18 the average delay per ship increased by 42 percent, amounting to 53 hours compared with the previous week and 41 percent compared to the first week of April. In addition, a dense fog is exacerbating the delays.
"Port authorities have announced some adjustments to terminal operations, but they haven't presented any definitive timetable regarding the restoration of normal operations," GAC Group, a logistics services company, stated in a press release. As a result, expectations are there will be delays of up to ten days for ships waiting to load and unload at the terminals.
Joerg Hoppe, director of DB Schenker, a leading cargo company in northern and central China, said they expected the congestion situation could continue up until the end of May.
The situation of the Port of Shanghai is due to three factors. According to Hoppe, last year a large number of Hanjin Shipping containers collapsed at the port, and they continue to lie there, taking up important space. A second reason would be the change in services and terminals that have accompanied the alliances as Ocean Alliance, The Alliance, and 2M plus Hyundai Merchant Marine (HMM), officially launched on April 1st. A third and final reason would be the mismanagement of the major terminal operators within Yangshan, where one operator has inactive capacity and the other is buried in boxes and ships.
Finally, the logistics operations consultant Logwin added that the adverse weather conditions in Shanghai and in the ports had forced the carriers to delay and change their mooring plans.
While the port authorities in Shanghai are trying to mitigate the delays, the fact is that, since there will be a general rate increase starting on May 1, many shippers are trying to get their containers loaded before this. Thus, it is unlikely the situation will improve until well into the coming month of May.
Source: SimFRUIT according to JOC.com and fullavantenews