According to indiashippingnews.com, container freight operations at major Chinese ports are gradually restarting after Typhoon Dolphin struck in early August. However, cargo backlogs and tight capacity could continue disrupting Asia’s supply chains for another one to two weeks.
Typhoon Dolphin was the strongest of three typhoons that hit China in five weeks. The storm caused significant disruption at Ningbo and Shanghai while tracking north toward Qingdao. China’s National Meteorological Center said the storm weakened to a tropical depression by August 11. Heavy rainfall and flood risks persisted across parts of central and northern China. More than one million people were evacuated ahead of the storm.
The weather event disrupted transport and logistics operations across eastern China. According to media reports this affected regional shipping networks significantly.
North Asia Congestion Surges Past Major Thresholds
Port congestion across North Asia has surged following Typhoon Dolphin. According to container shipping analyst firm Linerlytica more than 2.4 million twenty-foot equivalent units effectively tied up after the storm struck China’s eastern coast on August 9.
The storm forced vessels to seek shelter away from its path. This action disrupted schedules across regional shipping networks. Ningbo and Shanghai were identified as the hardest-hit ports. Terminal closures began on August 7 and 8. Congestion spread rapidly beyond these primary hubs.
Zencargo noted in its market update that trucking and warehousing operations in Shanghai and Ningbo are coming back online. Both cities have eased their emergency response levels. Vessel and terminal recovery is expected to take longer due to accumulated cargo.
In China, trucking and warehousing operations across Shanghai and Ningbo are coming back online following Typhoon Dolphin, with both cities easing their emergency response levels, though vessel and terminal recovery is expected to take longer as ports work through accumulated cargo and rescheduled sailings.” — Zencargo, August 11 market update
The backlog raises the risk of missed sailings. Carriers may roll cargo or bump containers from booked vessels. Some carriers have skipped Shanghai calls entirely due to severe congestion. Multi-day delays have also been reported in Ningbo, Shenzhen, and Hong Kong.
Petrochemical Markets Feel Logistics Spillover Effects
Logistics disruptions are beginning to spill over into China’s petrochemical markets. Market participants cited delays to cargo movements and heightened concerns over prompt material availability.
Acrylonitrile producer Shanghai SECCO Petrochemical raised prices due to supply constraints. The company increased weekly ACN price by 500 yuan per tonne. The new ex-tank price stands at 13,000 yuan per tonne. The typhoon disrupted logistics in east China and contributed to near-term supply concerns.
Temporary port closures affect feedstock movement in the Yangtze River Delta region. Typhoon-related disruption provided support for Asia’s toluene market despite sluggish downstream demand. Reduced port activity helped underpin sentiment by curtailing logistics operations.
Container ships transport polymers such as polyethylene and polypropylene in pellets. Titanium dioxide is also shipped in containers. These platforms move liquid chemicals in isotanks affecting broader chemical industry costs.
Asia-Europe Rates Face Downward Pressure Despite Constraints
Demand on the Asia-Europe route remains healthy but has softened recently. This trend indicates this year’s peak season has already passed. Carriers adjusted freight-all-kinds rates accordingly according to Zencargo.
August rates for the first half of the month settled at a lower level than July, continuing the downward trend.” — Zencargo
Full visibility on second-half August rates is not yet available. Early indications point to further modest decreases on top of reductions seen earlier in the month. Peak season surcharges remain in place despite softer demand forecasts.
Freightos noted that softer demand does not automatically translate into lower rates. Capacity remains constrained by weather-related disruption. Rates face upward pressure from supply-side constraints created by typhoon-related congestion and vessel delays.
Asia-US Rates Hold Steady Amid Tight Space Allocation
The FAK rate increase implemented at the start of August on Asia-US routes held firm. This increase is expected to remain in place through mid-month with another increase possible later in August according to Zencargo.
NAC Peak Season Surcharges will continue through August. Panama Canal surcharges are being applied separately as additional charges. Operational space remains highly restricted although conditions improved slightly from previous months.
Additional carrier capacity is being deployed primarily to clear cargo backlogs accumulated in Asia following previous disruptions. Shippers should anticipate delayed vessel departures and longer transit times over the coming weeks due to these compounding factors.
Source: indiashippingnews.com
Compiled from international media by the SCI.AI editorial team.
