Shipments from China to the United States and Europe are taking longer time.
Citing a study by Royal Bank of Canada, Reuters reported that the time to ship something from a Chinese warehouse to a U.S. one is currently 74 days longer than usual.
Meanwhile, shipping something from China to Europe takes an average of four days longer.
The number of vessels currently waiting for berths in Shanghai Port is 344, an increase of 34% over the past month.
According to Royal Bank of Canada, the Covid-19 lockdowns in China, the Russia-Ukraine war and other strains are main reasons causing longer delays at ports. They also drive up shipping costs due to knock-on effects.
The bank’s study found that one-fifth of the global container fleet is currently congested at major ports. It is pointing to worsening global supply chain problems.
Michael Tran, Head of Digital Intelligence Strategy at the bank, and his colleague, Jack Evans, said in the report, “Global port congestion is worsening and becoming increasingly widespread.”
These analysts acknowledged that it is hard to say when things would improve.
They said that various problems are taking a domino-like effect across markets.
For example, the Russia-Ukraine war and the sinking of ships in the Black Sea forced insurers to raise premiums to 1-5% of the value of the ship compared to pre-war levels of 0.25%. Meanwhile, the prices of marine fuel in Singapore, the world’s largest refueling port, surged 66% over the past year.
The study indicated that the average global delay of a ship’s arrival was 7.26 days in March, compared to 4.5 days in normal times.
In the U.S., Los Angeles and Long Beach ports are struggling to keep up.
There are 19 ships lined up in Los Angeles. The port level inefficiencies have seen turnaround time jumping to 6.9 days from 5 days a month ago.
In Europe, the total turnaround times of the three largest container ports, Rotterdam, Antwerp and Hamburg, are 8%, 30% and 21% higher than the five-year normal level, respectively.