Heavy rains, high winds and flooding this year are hampering global trade as the already overloaded shipping industry struggles to recover from disruptions ranging from Covid-19 outbreaks to geopolitical unrest. There could be worse to come, as officials predict more typhoons will hit China this month.
China warns of further flooding, extreme weather after weeks of chaos
From August to December, 16 to 18 typhoons are expected to form in the Northwest Pacific and South China Sea, the Meteorological Administration said on Wednesday. Four to six of them are expected to make landfall in China or affect the country.
“Every time a port is forced to close, containers keep piling up, adding to existing delays,” said Alex Hersham, CEO of digital freight forwarder Zencargo. “And as this season is expected to be heavier than usual for tropical cyclones, we can expect more delays like this.”
Supply chains have faced a series of bad luck this year. A Covid-19 outbreak among port staff was behind a partial shutdown of Yantian in May, leading to a build-up of containerized cargo for a month. As the ships moved away from southern China, some factories in neighboring Guangdong manufacturing hub closed due to excess inventory that could not be exported, analysts and the logistics intelligence firm say. project44.
“The impact of Yantian closing was unprecedented in the supply chain as it serves one of the largest manufacturing bases in the world, ”said Salmon Aidan Lee, polyesters manager at consultant Wood Mackenzie Ltd. a few days each time, this problem will get worse.
As the average wait time for a container to be exported to Yantian fell to five days from June 25, and operations resumed at the port on Wednesday evening, the situation could easily worsen again if delays associated with the Weather conditions in other Chinese ports are piling up, Hersham said.
Typhoon In-Fa also affected the plant’s operations in eastern China, while major ports along the Yangtze River, the country’s busiest waterway, halted operations last week, the Shanghai Shipping Exchange announced in a July 30 memo. Torrential rains and flooding affected the flow of raw materials like oil and coal, the company said.
The disruption is pushing the cost of shipping a 40-foot box from China to the United States to record levels above $ 10,000, according to shipping consultant Drewry. Ultimately, the growls will increase inflation, said Lee, who predicts that American consumers will have to pay about 20% more for Christmas gifts – from toys to furniture.
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This notice was published: 2021-08-05 03:38:33