Since the outbreak of the COVID-19, I learned that the World Port Association has continuously released a port economic barometer to track the development and changes of ports in the world's dangerous goods shipping. The third report released by the association recently shows that ports are beginning to be affected by the cancellation of flights by liner companies.
Compared to the previous two weeks, the situation of container ships hanging up at the port has significantly deteriorated. Only 41% of port respondents reported stable conditions (52% and 54% at week 15 and 16, respectively). The proportion of ports with a 5% -25% decrease in the number of container ships docked reached 42%, with one out of every 10 ports experiencing a decrease of over 25%, compared to less than 3% of ports last week.
In the transportation of dangerous goods by sea, the suspension of ships on the main east-west routes leads to a decrease in the number of port calls. At the same time, we have noticed a phenomenon where some liner companies have replaced these cancelled mainline voyages with denser regional branch lines, thereby filling the gap caused by the reduction in the number of long-distance route calls. Therefore, in some cases, the number of container ships docked has slightly increased, as the public's demand for specific goods has shown an upward trend during the lockdown period.
The report also points out that some large liner companies require the storage of container cargo used for delayed transit services (SOT) at ports, mainly for inbound cargo from Asia to Europe and the Americas. In some ports, the import of non essential goods (including new cars) causes congestion in the yard, and these goods stay at the port for longer than usual. At present, governments around the world allow the import and export of non essential goods on average three days a week, which has led to a 60% decrease in the utilization rate of some container yards.
Due to the shutdown of some important industries and the accumulation of certain goods, the ports, yards, and warehouses have not been fully utilized. These goods include steel, heavy goods, and machinery. Although bulk liquid commodities are still adversely affected by the decline in market demand, some liquid storage tanks have already been filled or rented out, so there are no more tanks available.
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