Industry News

China Market Advisory – Typhoon White Dolphin & Ongoing Port Congestion

We would like to provide an update on current conditions across East China, where the combination of ongoing port congestion and the approach of Typhoon White Dolphin (Typhoon No. 13) is expected to create further disruption to international shipping throughout this week.

Although major ports have remained operational following the disruption caused by Typhoon Bavi in mid-July, many shipping lines are still recovering schedules. Congestion remains evident across several key export gateways, particularly Shanghai and Ningbo, with vessel bunching, berth delays and schedule changes continuing to impact service reliability.

The forecast landfall of Typhoon White Dolphin along China's east coast is expected to place additional pressure on an already congested supply chain, delaying the recovery of vessel schedules and increasing the likelihood of further operational disruption.

Current Market Conditions

Major export ports including Shanghai, Ningbo, Yantian, Shekou and Nansha continue to experience varying levels of congestion as carriers work to restore normal service schedules following the disruptions experienced over recent weeks.

At the same time, persistent heavy rainfall across Eastern China has impacted terminal productivity, trucking operations and inland transport networks servicing many of China's largest manufacturing regions.

Expected Operational Impacts

As Typhoon White Dolphin approaches the East China coast, shipping lines and port authorities are preparing for potential operational restrictions which may include:

• Temporary suspension or reduction of pilotage and berth operations.
• Delays to vessel berthing and departures.
• Increased anchorage waiting times prior to securing a berth.
• Blank sailings and revised vessel rotations.
• Port omissions and cargo rollovers to subsequent sailings.
• Changes to published vessel schedules and ETAs with limited notice.
• Disruption to trucking, rail and barge movements servicing export terminals due to heavy rainfall and localised flooding.

Even relatively short operational interruptions can create significant congestion as vessels queue outside ports waiting for berths, resulting in flow-on schedule disruptions across the wider shipping network.

Customers with shipments departing from China during the coming weeks should be prepared for:

• Delayed vessel departures from origin.
• Revised arrival dates into Australian ports.
• Reduced schedule reliability throughout August.
• Longer transit times on selected services.
• Potential delays to transhipment cargo moving via Shanghai and Ningbo.

Whilst freight rates have generally stabilised following the exceptionally strong demand experienced during June and early July, schedule reliability remains under pressure as carriers continue to recover from previous weather disruptions while responding to the latest developing weather system.

Our Operations and Customer Service teams are monitoring carrier advisories, port conditions and vessel schedules daily. We are working closely with our overseas partners and the shipping lines to minimise disruption wherever possible and will continue to advise customers of any significant changes affecting existing bookings or shipments in transit.

If you have any questions regarding upcoming shipments or require an update on a specific consignment, please don't hesitate to contact your TCF International representative.