US-bound tankers and bulk carriers that are queued off the Chinese ports are facing long waiting times due to the ongoing friction between Beijing and Washington, which has started unsettling global shipping routes. The waiting time has increased this year after 19th October, when ships were forced to wait on an average of 2.66 days before securing a berth (a notable rise from earlier averages), according to Bloomberg’s analysis of data from ship-tracking service Kpler.
_0_0.jpg)
Image source: https://www.gocomet.com/
Explore- Most accurate data to drive business decisions with 50+ reports across the value chain
This delay has resulted in a roughly 17 per cent rise in vessel backlogs at major Chinese ports compared to previous weeks, according to port monitoring data.
Fees and sanctions add to shipping delays
China, the world’s largest importer of raw materials, has introduced additional charges on vessels linked to the United States, mirroring recent US restrictions. The move has added another layer of complexity to the already delicate trade relationship between the two powers.
Washington has also tightened sanctions on Rizhao, a key oil import terminal on China’s eastern coast, in a bid to disrupt crude flows from Iran. The step, part of a wider campaign to limit Iran’s energy exports, has further unsettled tanker operations and scheduling.
Don't miss out- Buyers are looking for your products on our B2B platform
Longer queues at major oil hubs
The knock-on effects have been felt across several key oil and bulk ports. At Dongjiakou, average waiting times climbed to 2.79 days last week, the second-highest figure in Kpler’s dataset. At Yantai, vessels idled for around 2.7 days, up from 1.8 days the week before.
“Shipowners are pausing to assess the situation,” said Matt Wright, freight analyst at Kpler. “Many are uncertain about which ships could incur the new Chinese fees, so some prefer to wait rather than risk higher costs.”
Risk of wider supply chain disruptions
As of now, the congestion in Chinese ports is the biggest and most potential headache across the commodity market in the global premise. Extended waiting times are not only slowing down shipment of crucial items like iron ore, crude oil, and other bulk items, but delayed shipping is also creating major bottlenecks in the supply chain.
According to the industry analysts, if delays continue to persist for another week or so, manufacturers depending on Chinese imports may experience higher freight costs. It’s a stark reminder that the economic rivalry between China and the US is now causing major hindrances to the global business landscape.
Must read: Key industry individuals share their thoughts on the hottest topics
Responses
