Container Port Chaos in China Surpasses Pandemic Levels

Port congestion in China is reaching alarming new heights, with delays accumulating weeks after a series of powerful typhoons wreaked havoc on the eastern coastline. As a result, many shipping companies have opted to bypass major ports, leading to a significant backlog of containers.

Recent data from Linerlytica reveals that globally, 4.3 million twenty-foot equivalent units (TEUs) are currently stranded at ports, eclipsing the previous peak of 4 million TEUs seen during the COVID-19 pandemic. While the total number of stranded containers is higher, percentage-wise, the congestion has not yet hit the same levels due to the influx of new container ships ordered post-pandemic.

Currently, stranded containers make up 12.6% of the global fleet's capacity, a figure that remains below the 2022 peak of 15.7%. Despite a larger relative capacity, ongoing disruptions at ports and recent backlogs at the Panama Canal have resulted in a temporary shortage of vessels, driving freight rates higher.

As of last Monday, the Port of Shanghai was experiencing significant delays, with 139 vessels queued up, marking unprecedented levels not seen since 2025 and 2026. Similarly, the Port of Ningbo reported 77 ships waiting to dock. The average wait time at Shanghai's Yangshan deepwater port has reached five to six days for Gemini Cooperation services, while non-Gemini services face delays of seven to eight days.

Shipping giant Maersk has taken measures to mitigate delays, confirming the Delos Wave 630N will skip its planned stop at Shanghai, redirecting cargo to alternative ports. This follows earlier decisions to reroute other vessels away from Shanghai due to the ongoing congestion.

As freight rates continue to soar, with a 9% increase for ocean spot rates from Shanghai to both U.S. coasts, the situation remains precarious. For instance, the cost for shipping a 40-foot container to New York has reached $9,507, while Los Angeles sees averages at $6,802.

The ongoing turmoil in the Middle East and the Panama Canal's decision to further limit vessel traffic are compounding these challenges, suggesting that the shipping industry may face continued disruptions in the near future.

Source: wwd.com