Prime Freight’s summary of a December 2020 report by The Loadstar. Read the original for the full story.
In December 2020 carriers began suspending bookings into South China ports for early 2021, as Covid quarantine rules for ship crews cut feeder capacity.
OOCL announced a sharp drop in feeder space and suspended bookings for South China ports from 11 January to 23 February, and ONE set similar restrictions at some ports from 5 January to 26 February. Ports in Guangdong, Guangxi, Hainan, Yunnan, Guizhou and Fujian were affected. SeaIntelligence said deep-sea services were not included, but the underlying cause pointed to a squeeze across the whole South China feeder market.
Forwarders expected other carriers to follow and said the timing, ahead of Chinese New Year on 12 February, could hardly be worse. The suspensions would disrupt intra-Asia trade and connections to mainline ships in Hong Kong and South China, and could hold back the repositioning of empty containers. Cross-border trucking was an alternative but depended on driver availability and would cost more. One forwarder suggested a lack of empty equipment was the real cause, and Chinese forwarders urged customers to take whatever space was offered rather than wait for rates to fall.
What it meant for shippers
Feeder disruptions affect cargo far beyond the suspended ports, because so much South China cargo connects through Hong Kong and other hubs. Before Chinese New Year 2021, securing space early and planning alternatives was essential.