+
 Container Freight rates to increase on more China lockdowns
PORTS & SHIPPING

Container Freight rates to increase on more China lockdowns

The number of container ships waiting off Qingdao port continues to rise as the country doubles down on its Covid Zero policy, adding more delays to an already strained global supply chain.The increased delays across China are expected to increase freight rates.

According to data, nearly 72 vessels were spotted off Qingdao port in Shandong, which almost doubled at the end of February. The increased delays across China are expected to increase freight rates.

This year, the volumes of container ships are being exacerbated by lockdowns aiming to curb new coronavirus outbreaks.

Salmon Aidan Lee, head of Wood Mackenzie, told the media that the Covid-19 pandemic situation has worsened in the past few days at Qingdao. He expects freight rates to increase because of increasing delays.

There is also a growing backlog of containers off Shanghai Ningbo and Zhoushan ports. There were 262 ships, up from 243 a week ago. However, the situation in Shenzhen and Hong Kong has eased a bit, down to 162 vessels.

The rapid spread of the pandemic had already strained supply chains reeling from the Russia-Ukraine war. Shipping lines like AP Moller-Maersk have cancelled their services to Russia and halted some rail shipments from China into Europe.

China has locked down Shenzhen and the northeast province of Jilin to control the pandemic, threatening technology and auto manufacturing output. The Yantian container port operations are continuing normally.

China's zero-tolerance policy has led to several partial closures of ports over the past year, exacerbating concerns about disruptions to supply chains and increase in production costs. The surging price of global oil and gas due to the Russian-Ukraine are increasing inflation risks in China as factory costs remain high.

Image Source

Also read: Mangalore port's container terminal to begin operations by March-end

The number of container ships waiting off Qingdao port continues to rise as the country doubles down on its Covid Zero policy, adding more delays to an already strained global supply chain.The increased delays across China are expected to increase freight rates. According to data, nearly 72 vessels were spotted off Qingdao port in Shandong, which almost doubled at the end of February. The increased delays across China are expected to increase freight rates. This year, the volumes of container ships are being exacerbated by lockdowns aiming to curb new coronavirus outbreaks. Salmon Aidan Lee, head of Wood Mackenzie, told the media that the Covid-19 pandemic situation has worsened in the past few days at Qingdao. He expects freight rates to increase because of increasing delays. There is also a growing backlog of containers off Shanghai Ningbo and Zhoushan ports. There were 262 ships, up from 243 a week ago. However, the situation in Shenzhen and Hong Kong has eased a bit, down to 162 vessels. The rapid spread of the pandemic had already strained supply chains reeling from the Russia-Ukraine war. Shipping lines like AP Moller-Maersk have cancelled their services to Russia and halted some rail shipments from China into Europe. China has locked down Shenzhen and the northeast province of Jilin to control the pandemic, threatening technology and auto manufacturing output. The Yantian container port operations are continuing normally. China's zero-tolerance policy has led to several partial closures of ports over the past year, exacerbating concerns about disruptions to supply chains and increase in production costs. The surging price of global oil and gas due to the Russian-Ukraine are increasing inflation risks in China as factory costs remain high. Image Source Also read: Mangalore port's container terminal to begin operations by March-end

Next Story
Infrastructure Energy

Reliable Energy Storage Vital for 24/7 Renewable Power: TKIL

Reliable, scalable, and efficient energy storage systems are essential to ensuring uninterrupted renewable energy supply, said engineering firm TKIL Industries at the India Energy Storage Week (IESW) 2025.India aims to achieve 500 GW of renewable energy capacity within the next five years.Speaking at IESW, organised by the India Energy Storage Alliance (IESA), Vivek Bhatia, Managing Director and CEO of TKIL Industries, emphasised that the country’s energy sector is experiencing a major transformation. This shift is being driven by innovations in storage technology, aimed at improving grid re..

Next Story
Infrastructure Energy

IIT Madras, Hyundai Launch £17m Hydrogen Research Centre

The Indian Institute of Technology Madras (IIT Madras) and Hyundai Motor India Ltd (HMIL) have announced the establishment of the Hyundai HTWO Innovation Centre, a cutting-edge hydrogen research facility set to begin operations by 2026.The Rs 180 crore (approx. £17 million or USD 21.5 million) project will be located at IIT Madras' Discovery Campus in Thaiyur, near Chennai. Of the total, Rs 100 crore (approx. £9.4 million) has been committed by HMIL and its philanthropic arm, Hyundai Motor India Foundation (HMIF), with support from the Government of Tamil Nadu and its investment promotion ag..

Next Story
Infrastructure Energy

India’s Hydrogen Demand to Hit 8.8 MTPA by 2032: IESA Report

India’s hydrogen demand is projected to grow at a compound annual growth rate (CAGR) of 3 per cent, reaching 8.8 million tonnes per annum (MTPA) by 2032, according to a report released by the India Energy Storage Alliance (IESA).Unveiled on the first day of the India Energy Storage Week (IESW) 2025, the report points out a gap between ambitious project announcements and actual progress. While green hydrogen (GH₂) projects totalling 9.2 MTPA have been announced, only a limited number have reached Final Investment Decision (FID) or secured long-term domestic or international offtake agreemen..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?