Knock-on Effect of Shipping Delays in China

The shortage of plug points and dwindling space at the port have prompted
shipping container lines to cancel new reefer bookings into Dalian. Photo: Xinhua

Hundreds of containers are being held up in Dalian, a major port for seafood imports, as Chinese authorities test the fish for the coronavirus before allowing them to clear customs, according to several freight forwarders, consultants and shipping companies. That is leading to a critical shortage of electric outlets to keep refrigerated containers cold.

This comes on top of the Chinese New Year holiday, which has exacerbated COVID-19-related shipping delays outbound from China. A breakdown in intermodal connectivity between factories and ports could worsen global supply chain woes. 

The shortage of plug points and dwindling space at Dalian has prompted shipping lines to cancel new reefer box bookings into that port. It also means refrigerated containers are being diverted to other ports in China, leading to bottlenecks in Shanghai and Qingdao too. And it’s not just within China. Russian vessels filled with seafood that were headed to Dalian and Qingdao have now been re-directed to South Korea’s Busan, raising the risk that its port will also become congested. Much of the recent concern for rollover cargo has focused on reefer containers.

AP Moller-Maersk A/S, the world’s biggest container shipping line, said it’s stopped taking new reefer bookings for Dalian. French rival CMA CGM SA said it will be levying surcharges on cargoes headed to Dalian, and diverting reefers where they can. Shipping giant MSC Group also said it’s unable to offload reefers in Dalian, and has told customers their cargoes may be sent to an alternative port and held there — incurring daily costs — until they can be forwarded.

Metrics such as carriers’ schedule reliability are worsening and cargo rollover rates are still on the rise. The average delay for containers increased from one day in January 2020, to more than five days in January 2021. It may take several more months for supply chains to return to some semblance of normality as inventory, now trapped further up the supply chain, will need to be cleared.

Contact us with any questions you may have about shipping general cargo and refrigerated containers. As a licensed Customs Broker and International Freight Forwarder, Colless Young offers a complete range of logistics services, both air and sea, import and export, through all Australian ports and airports, including clearance through customs, warehousing and fumigation.