Previously reported congestion in Chinese ports is also affecting other ports, since companies had to unload refrigerator (reefer) containers in other locations, increasing reefer plug utilization there, the report revealed.
The document said that Indian importers can’t get the proper documents from the Chinese counterparts, so “the cargo is stuck at Indian ports, creating congestion problems,” which means congestion is affecting several other ports in Asia.
To avoid factory shutdowns due to lack of components, some auto plants, like Jaguar Land Rover, opted to use air cargo trips.
Large capacity reduction
Since the Chinese New Year is the biggest holiday in China’s calendar, shipping and logistics companies already expected a higher number of blank sailings (cancellations by the carrier), but those estimates were elevated due to the epidemic.
The largest capacity reduction was registered in Asia to North Europe lane, where 11 percent of the capacity was blanked since the Chinese New Year. When considering the holiday’s blanks, 29.5 percent of the capacity was removed from the trade, in over 10 weeks.
In the Transpacific trade to the North American West Coast, 10 percent of the sailings were blanked due to the virus, bringing the total level of blanked capacity to 24.1 percent.
In the 10-week-period, during which the coronavirus has affected every sector in the industrial chain, the Transpacific trade to the West Coast now “equals 74 percent of the normal Chinese New Year removal.” In the Asia-Mediterranean lane, the impact is 71 percents