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
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?