Shipping delays in Chinese ports and Q3 fee announcements

As we come up to Q3, the shipping sector is as busy as ever and facing extra turmoil from COVID-19.

With congestion at Chinese ports worsening as a result of COVID spread, the shipping world is struggling to deal with the disruption to global supply chains.

Stay up-to-date with all the relevant news in shipping with our June update below.

In case you missed it, MYC Logistics’ HQ office is now located at 2/45 Welshpool Road, Welshpool.

Around 80 percent of goods globally are carried by sea, amounting to a throughput of around 775 million TEUs (twenty-foot equivalent units, roughly the size of a 20 ft long shipping container) each year. However, ten shipping companies make up over 70% of the global TEU share.

See the top 10 shipping companies around the world below as of June 2021 below. You can keep up-to-date yourself here.

1. Maersk (4.1 M TEU)
2. MSC (4.0 M TEU)
3. CMA CGM (3.0 M TEU)
4. COSCO (1.7 M TEU)
5. Hapag-Lloyd (1.7 M TEU)
6. ONE (Ocean Network Express) (1.5 M TEU)
7. Evergreen Line (1.3 M TEU)
8. HMM Co Ltd (0.8 M TEU)
9. Yang Ming Marine Transport Corp (0.6 M TEU)
10. Wan Hai Lines (0.4 M TEU)

Here are the top news items in shipping right now:

• COVID-19 shortages are creating a surge in costs for businesses trying to source materials, in sectors from building to cars and electronics,  making economic recovery more difficult Australia-wide. Find out more here. 
• A recent COVID-19 outbreak has hit China ports hard. Yantian and Shekou port operations are currently suspended and there is a five day vessel turnaround due to the subsequent lockdown.  
• Ocean freight prices increased in June and space is limited, which will likely result in a record high in ocean freight rates in July. 
• As a result of a surge in demand related to COVID-19, the prices of sea freight have skyrocketed across the world. Soon, consumers will be facing the effects of these price increases. Read more here. 
• DP World, Hutchinson, Patrick Terminal and Australian Amalgamated Terminals will see a Vehicle Booking Service (VBS) fee increase. 
• From July 12, containers that are packed in khapra beetle risk countries that will be unpacked in a rural grain growing area will require offshore treatment to protect Australia from the risk of the khapra beetle entering. 
• In Q3, effective as of 1st July until 30th September 2021, there will be a ONE Bunker Surcharge (OBS). 
• ANL Container Line has also advised that, as of July 1st 2021, ANL BAF will be increasing.
  
• If you have any questions or feedback, please don’t hesitate to get in touch with your MYC liaison or call us on +61 8 9253 0121.