Increasin demand, bad weather, as well as slower operations because of COVID-19, has made Chinese port congestion approach record levels.
According to estimations, about 7% of the global capesize fleet is stuck in ports, while last week the volume of laden capesize tonnage waiting to discharge in China reached 14 million dwt.
As Braemar ACM, the congestion in China has also caused in increase in capesize rates which remain higher than anticipated. What is more, torrential rains seen in the south of the country has also contributed to the slow movement.
Moreover, the Chinese congestion issue is also felt in the tanker trades. Namely, as of July 23, about 120 million barrels of crude were waiting off China to discharge, increasing from around 80 million barrels in early July, sources report.
In addition, Refinitiv estimations note that the average waiting time for tankers to discharge is three to four weeks for vessels in the Qingdao-Rizhao area and about two weeks in Ningbo-Zhoushan and other major ports.