ports

Dense fog chokes China's major ports as shippers race to beat deadlines

Thick fog blanketing Shanghai, Ningbo and surrounding waterways has severely disrupted container operations along China's coast, stranding approximately 1.5 million teu of shipping capacity in North Asian ports. Weather conditions have reduced visibility to less than 1 kilometer across the Bohai Sea, Yellow Sea and Yangtze River estuary since 27 March. Ship delays at major terminals have reached three to seven days at Waigaoqiao and two to three days at Yangshan. Exporters are accelerating cargo shipments destined for Europe and the United States. The congestion has triggered a sharp spike in freight rates. Shanghai-North Europe pricing jumped 30 percent to $2,475 per teu. Container lines are capitalizing on the bottleneck, announcing new rate hikes scheduled for mid-June with FAK prices pushed to $6,000 per 40-foot unit. Transpacific routes have also experienced rate increases amid the extended delays.