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Shippers face growing delays in Ningbo
Shippers and carriers are facing lengthening vessel wait times at China’s Ningbo. Facilities at the world’s third-busiest container port become congested with cargo diverted from Shanghai. Additionally, exporters face additional headwinds when China starts a nationwide five-day Labor Day holiday from April 30th.
Some carriers are starting to skip Shanghai on intra-Asia services even as cargo conditions improve in Shanghai. More warehouses are reopening and restrictions are easing for the import of dangerous goods cargoes.
Much of the cargo is being diverted to Ningbo, where 14-day average ocean volumes surged 14%, according to a report published Monday.
Asian freight surge puts pressure on NY-NJ empty returns
High import volumes being diverted from the West Coast is putting renewed pressure on marine terminals at the Port of NY and NJ. Additionally, it is forcing additional limits on intermodal truckers for returning empty containers.
As a result of the high volumes, a NY/NJ marine terminal is considering a new rule that would match import containers with empty ones for Saturday gate hours. However, motor carriers say that alone won’t work. They say there are already hundreds more empties that need to be removed before they can handle more import retrievals.
Truckers say that longer operating hours are now needed to deal with current volumes at marine terminals. It is up to ocean carriers to perform more of the double moves of removing empties when dropping off imports.
China lockdowns will impact peak production
The CEO of Kuehne & Nagel said that lifting widespread production-limiting Covid lockdowns will be crucial over the coming weeks. This comes as manufacturers in China begin preparing orders for the winter and Christmas seasons.
He estimated that export volume from China was down 15% in the past few weeks because of the traditional post-Chinese New Year lull combined with the widespread lockdowns. However, he said of great concern was how long the lockdowns would continue to be imposed in Shanghai and the greater Beijing area.
Prices & delays for electronics parts could stretch into 2023
According to Supplyframe, tight conditions in the global supply chain for electronics parts and components will continue well into 2023 as buyers experience “grim” challenges such as low supplies and high costs.
Continuing challenges at the beginning of this quarter suggest that there will only be pockets of relief throughout the remainder of 2022 and into 2023 for many commodities. In the meantime, the impacts will include shortages of resin feedstocks and additives, increasing costs for fuels and metals, and challenges related to the affordability and availability of labor and freight capacity.
More disruption to follow China’s lockdowns
The lifting of Covid lockdowns in China – whenever it happens – will send a wave of containers across the Pacific, leading to a surge of congestion at U.S. ports. The question is how long China’s lockdowns will continue, and how much additional freight will be delayed at a time when some importers are already trying to pull their fall imports forward.
Some congestion has shifted from Southern California to ports on the U.S. East and Gulf coasts. A fresh wave of backlogged goods on order from China could add to that and boost landside supply chain costs for already scarce warehousing and storage to intermodal rail and truck rates.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships