Customer Advisory: Week 24 2021
CUSTOMER ADVISORY | WEEK 24, 2021
Since the latest advisory, the global supply chain continues to experience widespread disruptions. On the heels of the Suez mishap, we are now dealing with COVID-disrupted ports. The intent of this advisory it to inform you of the supply chain disruptions that might impact your business.
Outbound China/Trans-Pacific Eastbound
- The availability of containers at southern Chinese ports continues to deteriorate as carriers omit calls due to a wave of Covid outbreaks in Guangzhou province.
- According to the latest data from Container xChange, the ports of Yantian, Shekou and Nansha have been hit worst by the box shortages.
- The congestion that has built up across South China is so severe that the reopening of YICT’s west terminal area is unlikely to have any immediate impact on the bottlenecks.
- Median dwell times at Yantian have risen to about 18 days. Currently an estimated 66 ships dwelling and awaiting berthing in Yantian.
- This will mean additional blank sailings in June from Yantian to Hong Kong to the US West Coast.
- The port congestion has directly impacted road operations, and trucking costs have soared as well.
What can we expect going forward?
- Continued strong demand through 2021.
- Limited supply as container demand outpaces container supply.
- Fewer options compounded by the Covid-19 port disruptions.
- More pressure on container rates as evidenced by new records being set every week for spot rates.
Here to support you
The Dunavant Team values the opportunity to provide the solutions and services you need and expect from us. Throughout these challenging times we will continue to be as transparent and open as possible in helping you make decisions to best support your business. Should the current outlook change, we will inform you accordingly. In the meantime, we will continue to work diligently to identify opportunities to secure available space. In addition to space, we are also positioned to offer port transload services as needed while we work through the lack of service to inland ports. Please do not hesitate to reach out to your Dunavant contact should you have any questions.
Your Dunavant Team