• ITVI.USA
    15,605.240
    -1.200
    0%
  • OTRI.USA
    23.180
    0.400
    1.8%
  • OTVI.USA
    15,606.030
    0.730
    0%
  • TLT.USA
    2.790
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.390
    -0.060
    -1.7%
  • TSTOPVRPM.CHIATL
    2.840
    -0.080
    -2.7%
  • TSTOPVRPM.DALLAX
    1.510
    -0.070
    -4.4%
  • TSTOPVRPM.LAXDAL
    3.290
    0.080
    2.5%
  • TSTOPVRPM.PHLCHI
    1.980
    -0.060
    -2.9%
  • TSTOPVRPM.LAXSEA
    3.900
    0.100
    2.6%
  • WAIT.USA
    124.000
    -3.000
    -2.4%
  • ITVI.USA
    15,605.240
    -1.200
    0%
  • OTRI.USA
    23.180
    0.400
    1.8%
  • OTVI.USA
    15,606.030
    0.730
    0%
  • TLT.USA
    2.790
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.390
    -0.060
    -1.7%
  • TSTOPVRPM.CHIATL
    2.840
    -0.080
    -2.7%
  • TSTOPVRPM.DALLAX
    1.510
    -0.070
    -4.4%
  • TSTOPVRPM.LAXDAL
    3.290
    0.080
    2.5%
  • TSTOPVRPM.PHLCHI
    1.980
    -0.060
    -2.9%
  • TSTOPVRPM.LAXSEA
    3.900
    0.100
    2.6%
  • WAIT.USA
    124.000
    -3.000
    -2.4%
American ShipperMaritimeNewsViewpoint

Viewpoint: Yantian might be ‘worse than the Suez blockage’

Why the flow of trade — or lack thereof — is providing the truth in China

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

The armchair quarterbacking on Yantian continues and while the commentary is interesting, the only hard fact in this hot mess is drayage, the number of containers stacked up at the ports and the processing times at port. 

Trade movement is basic common sense. You need people. If there are stringent quarantine measures and few people working, then trade will move at a snail’s pace. This is supported by the latest dataset pulled from MarineTraffic.

Processing out of the Port of Yantian ticked up yet again. Another day, another increase in delay. This means there is no significant increase of people working at the port to speed the process up. It also shows the significant magnitude of the lockdowns in the surrounding area. There are currently 27 cargo vessels at anchor at Yantian.

“Cargo vessels at the Yantian port are waiting longer to process,” said Fotini Tseroni, spokeswoman for MarineTraffic. “The median time at the Chinese port for containerships two weeks ago was 1.2 days. Today this has increased to over 3.3 days.”

(Chart from marinetraffic.com)

SONAR data for the Port of Yantian shows the tremendous number of TEUs that arrive into U.S. ports weekly. The largest-named consignee is TV maker TTE Technologies. Other big brands of note are Tesla, Williams-Sonoma, QVC, JoAnn Fabrics and Hasbro.


SONAR KNOWLEDGE

Both charts are the landed U.S. import shipment (1 bill of lading = 1 shipment) volumes that have been cleared and reported by U.S. Customs.

 (To learn more about FreightWaves SONAR, click here.)

In an effort to keep trade flowing, all the major carriers have canceled sailings to Yantian. While this diversion is useful in avoiding that congestion, it has created a whole new chain of bottlenecks. 

MarineTraffic data shows the ports of Hong Kong and Nansha are overflowing with vessels. There are 58 cargo vessels at anchor with Hong Kong as their final destination and 25 cargo vessels at anchor at Nansha, which according to SONAR data shows Electrolux Home Products as the main branded consignee. The port of Shekou has 14 cargo vessels at anchor.

“This is a result of the diversion and the inability of these ports to process because of the lack of equipment and capacity,” said Jon Monroe of Monroe Consulting. “The congestion at Yantian and the ripple effects on the alternate port destinations have snarled trade worse than the Suez blockage. 

“Right now we are telling customers there is no plan B to this situation.”


SONAR KNOWLEDGE

These charts represent the total TEU volumes calculated from ocean container bookings being made in Yantian and Nansha, with the white dotted line representing the next 7 days of confirmed volumes that are expected to depart from their respective origins bound for U.S. ports. It appears that Nansha is going to hit an all-time high for volumes in the next 7 days. — FreightWaves Market Expert Henry Byers

 (To learn more about FreightWaves SONAR, click here.)

Kim Bradley, COO and CFO of the fashion footwear company Highline United, tells American Shipper she is concerned about information she’s receiving from her Chinese shippers in terms of the number of cases versus the delays and the chaos she is experiencing in the movement of her containers.

“It doesn’t add up,” she said. “I had a call with our shippers last night and when I asked them how severe the [COVID-19] outbreak was, they told me it was just a few cases. It doesn’t make sense. The last two weeks have been a nightmare in trying to move containers. Truckers are barred from going into Nansha, Hong Kong has restrictions. This does not correlate with a ‘few cases.’ There is not enough transparency on what is going on. We need accurate information so we can decide if we need to move certain products by air.”

Lori Ann LaRocco

Lori Ann LaRocco is senior editor of guests for CNBC business news. She coordinates high profile interviews and special multi-million dollar on-location productions for all shows on the network. Her specialty is in politics, working with titans of industry. LaRocco is the author of: “Trade War: Containers Don’t Lie, Navigating the Bluster” (Marine Money Inc., 2019) “Dynasties of the Sea: The Untold Stories of the Postwar Shipping Pioneers” (Marine Money Inc., 2018), “Opportunity Knocking” (Agate Publishing, 2014), “Dynasties of the Sea: The Ships and Entrepreneurs Who Ushered in the Era of Free Trade” (Marine Money, 2012), and “Thriving in the New Economy: Lessons from Today’s Top Business Minds” (Wiley, 2010).

3 Comments

  1. To Mr. Bradley’s comments, as a person living in China, I can confirm the cases are a in the low triple digits. There is no lack of transparency. On the contrary, the Government’s heavy handed measures is what is wrecking havoc in daily life, including businesses in general. Not having these “draconian” measures would allow these few cases to become an uncontrolled outbreak. This is what the Chinese Government would consider short-term pain for long-term gain.

  2. Kim Bradley doesn’t seem to understand that a few cases means strict measures taken in China so a few cases doesn’t become many cases. Some might say over the top, but this is a country where the pandemic started but it’s also the first place the pandemic ended, even without a vaccine. I guess the CCP values human life more than money after all? Unlike certain orange men.

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