CMA CGM has joined Ocean Network Express (ONE) in implementing a surcharge for reefers bound for Yantian, China as it says due to congestion most reefer plugs are already occupied.
The France-headquartered container recommended changing the port of discharge and warned that otherwise it may be forced to reroute cargo. To cover the costs of rerouting shipments bound Yantian CMA CGM is implementing a $1,250 per reefer container surcharge.
The surcharge was implemented on shipments from all ports to Yantian from 11 June, excluding regulated trades where the surcharge applies from 21 July.
Carriers, faced with increasing congestion, low productivity and a mounting backlog of exports in southern China have been forced to omit port calls, extend gate-in times and, in Ocean Network Express (ONE)’s case, added a $1,000 surcharge on reefer cargo to Yantian.
ONE and Maersk are omitting calls at Yantian terminals in an effort to maintain schedules, as congestion and delays in Europe, the US and Asia build, – the Pearl River Delta region of particular concern.
The lines are reducing arrival times for export cargo in some ports to three days before the vessel’s estimated time of arrival from seven, and Maersk expects the situation to deteriorate, given that some terminals are operating at around 30% of normal productivity.
Maersk has reported that the eastern area of the terminal at Yantian, which handles mainline vessels, is operating at 30-40% of its normal productivity.
With congestion due to heightened Covid-19 prevention measures also affecting the South China ports of Nansha and Shekou container lines are omitting calls and rerouting hundreds of sailings.
The congestion is also pushing up already record freight rates. Digital freight forwarder ZenCargo reported that transporting a 40-foot container of cargo from Shanghai to Rotterdam now costs a record $10,522.
The Shanghai Containerised Freight Index hit 3,703.93 points on 11 June, compared to 2,300 points in December 2020 and under 1,000 points in the early part of last year.
Meanwhile, the Hong Kong-based South China Morning Post reports that “operators of most of the ports in Shenzhen and Guangzhou, including Yantian, Shekou and Nansha, plan to keep stringent disinfection and quarantine measures in place at least until next week”.
These measures will delay cargo operations further and result in more freight rate increases. They are expected to reach record levels in the second half of the year.
Source: The LoadStar and Seatrade Maritime
