CHICAGO – July 07, 2021 – Dwell times at major Shenzhen ports tracked by project44 remains disruptively high, despite trending downward in recent days with the Port of Yantian at full capacity again.
The data suggests that disruptions related to China’s COVID-19 quarantine efforts could extend well into the year, impacting seasonal shipments as far out as Christmas.
Last month, Chinese authorities restricted operations at the Port of Yantian (YICT) in an effort to slow a COVID-19 outbreak in the region, creating a massive cargo bottleneck at the port.
Despite the port operating at full capacity again, the backlog is affecting the region’s manufacturing sector presenting a headache for shippers, one that is said to last for the immediate future.
As of July 1st, the rolling seven-day average dwell times were 12.9 days for outbound (Port of Loading) and 4.2 days for inbound cargo (Port of Discharge). While high by pre-pandemic measurements, these numbers are well below last month’s high of 25.4 as a port of lading, which occurred on June 22.
High port of lading dwell times suggest that port workers are still working their way through a massive backlog of cargo that has built up over the last month, both at the port, and in factories and warehouses across the region.
This corroborates reports that some factories have paused production due to lack of space, causing further supply chain delays that will be felt for months to come.
While yard density in Yantian is said to be down to 65% and overall productivity has increased to 85% of normal levels, the impact on Yantian port is also affecting some of the neighboring ports of Shekou, Nansha and Hong Kong.
Blanks sailings figures are also on the rise heading into July, reaching 17 on July 1st, and 12 on July 2nd. While these figures are well below last month’s high of 26 blank sailings, which occurred on June 11th, even in the teens, these blank sailings represent 189,203 and 107,326 TEU of total vessel capacity skipping YICT on the 1st and 2nd respectively.
“While we can see that cargo is moving through the port again, this event is shaping up to be one of the most disruptive of the year,” said Josh Brazil, Vice President of Marketing at project44. “
This is yet another reminder to shippers that disruptions can happen at any point, and that it’s increasingly important that they gain full visibility into their shipments, diversify and bolster their supply chains, and do everything possible to get ahead of events like these that are inevitable in today’s world.”
Disclaimer: The data referenced in this release is sourced from project44’s freight visibility platform, based on the logistics indicators that the platform tracks. The sample data sets referenced do not include all freight movement data tracked by other entities. Data from project44’s platform reflects a statically significant sample size to draw conclusions.
About project44
project44 is the world’s leading advanced visibility platform for shippers and logistics service providers. project44 connects, automates and provides visibility into key transportation processes to accelerate insights and shorten the time it takes to turn those insights into actions. Leveraging the power of the project44 cloud-based platform, organizations increase operational efficiencies, reduce costs, improve shipping performance, and deliver an exceptional Amazon-like experience to their customers. Connected to thousands of carriers worldwide and having comprehensive coverage for all ELD and telematics devices on the market, project44 supports all transportation modes and shipping types, including Air, Parcel, Final-Mile, Less-than-Truckload, Volume Less-than-Truckload, Groupage, Truckload, Rail, Intermodal, and Ocean. In 2021, project44 was named a Leader among Real-Time Transportation Visibility Providers in Gartner’s Magic Quadrant. To learn more, visit www.project44.com.
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