Global Port Congestion: Outlook Uncertain

Long Beach, Los Angeles. File Image / Pixabay.

Peak season arriving early in the US could add to global port congestion as players prepare for the expected uptick in demand at a time when supply lines are tight.

But how that might pan out will ultimately depend on the impact on the market of the end of lockdown in Shangahi.

And opinion on this question is mixed

"Half of the pundits expect there to be a surge of pent up exports, while the other 50% think that orders have been cancelled as consumer demand has fallen off a cliff," Mike Wackett, editorial consultant at the Loadstar, told Ship & Bunker.

As to how peak season in the US will be affected, Wackett agrees the outlook is uncertain.

"Nobody knows how strong this is going to be yet," he said adding the caveat that Walmart and Target in the US have suggested that demand will be down.

In Europe, port congestion has been exacerbated by events in Shanghai.

Late last month shipping analyst Alphaliner reported space being squeezed at north European container terminals and inland which is "aggravating port congestion problems in the trade between the Far East and North Europe".

"Container ships deployed on this route currently need on average 101 days to complete a full round voyage," the analyst said.

But from a NWE bunker perspective, demand seems to have held up.

One regional physical bunker supplier said that ships are opting for bunkers only calls as they wait to dock.

"We are seeing [a lot of demand for bunkers only] at Flushing Roads," the supplier told Ship & Bunker.

Overall the NWE bunker market remained calm pointing to the possible early arrival in the market of the summer lull.