As we enter the traditional peak shipping season, port congestion on the west coast of the United States is still severe; on the other side of the Pacific, some ports in southern China have also experienced the worst congestion in more than a year, accelerating the sharp rise in shipping and cargo prices.

On the west coast of the United States, the center of congestion is located near Los Angeles and Changdi Port, and the Port of Auckland is also beginning to show congestion. Maersk Shipping, the world's leading container shipping company, recently warned that the average waiting time for ships in Los Angeles and the Long Embankment is one to two weeks, and the situation at Auckland Port is even worse. The waiting time has now been extended to about three weeks.

As ships are unable to return to Asian ports to load in time, US port capacity is reduced, and US import demand is still soaring, putting more pressure on the already tight container shipping market. Maersk said that since this year, the capacity from Asia to the West of America has been lost 20%; it is expected that from June to the end of August, capacity will also be lost 13%.

In southern China, since late May this year, some ports in Guangdong have introduced control measures one after another. According to First Finance, Shenzhen Yantian Port did not accept heavy containers from May 25 to May 30, and resumed receiving export containers within three days on May 31, but it is open to accept 5,000 containers every day. Currently, the processing capacity is only 1/7 of normal. At the time, Yantian Port already had a backlog of more than 20,000 export containers.

International shipping companies bear the brunt. The Securities Times quoted people familiar with the matter as saying that many freighters are quarantined in the waters near the pier and wait in line to check safety before entering the pier. Maersk's previous announcement indicated that the epidemic prevention measures at Yantian Port have become stricter, the density of docks continues to rise, operations in the western district have not yet resumed, and production efficiency in the eastern district is only 30% of the normal level. It is expected that ship delays will be further extended in the future.

As of Friday, more than 50 container ships were waiting to dock in Yantian, according to Refinitiv data. In comparison, there were only 20 ships in the same period last year.

Due to port congestion on the west coast of the United States, the container transportation supply chain in southern China was already operating at full speed. Congestion and delays at this time had a significant impact on the global supply chain. Some of the chain effects that occurred after a container ship blocked the Suez Canal in March have also accelerated the formation of the current situation.

At present, container freight rates have reached a record high. Container freight rates from China to Europe rose to $11037 per 40-foot container this week, and are expected to continue to rise. Josh Brazil, VP of Marketing at Project44, said:

This could increase the cost of exporting goods that are already at record levels. Delivery delays have caused domestic shipping prices in China to soar due to lack of containers and increased export demand.

Higher freight rates are putting pressure on importers and exporters to increase costs and affect consumer goods prices. The sales manager of an electronic cable manufacturer in Shenzhen was quoted by Reuters as saying:

The rise in transportation costs has become very alarming, which is also reflected in material costs. Currently, material costs have risen by 15% to 30%.