Super Typhoon Ragasa disrupts China's key ports, sparking regional ripple effects

The closure of several major Chinese ports Sept. 22 ahead of Super Typhoon Ragasa could create shipping delays that exacerbate congestion at Southeast Asian ports, market sources said.

Port authorities closed Shenzhen and Nansha ports in Guangdong province until conditions improve. Shekou, Chiwan, Mawan and Dachan Bay ports also closed Sept. 22, according to a shipper.

"It is predicted that the wind and rain will gradually intensify in the afternoon of the 23rd, and the period from the night of the 23rd to the 24th will be the period with the strongest wind and rain, with an extremely high risk of causing disasters," a China-based carrier said.

The same carrier estimated Yantian and Shekou terminals in Shenzhen would likely open on Sept. 25 "if all goes well."

S&P Global Commodities at Sea showed 15 ships at anchor, mooring or underway using their engines at the Shenzhen port.

'Ripple effect of delays'

Market participants, including shippers, carriers, and port authorities, expressed concerns about ship bunching, congestion and schedule delays as a result of the uncertainty around port operations.

The delays could soon spill over to Southeast Asian ports, they said.

"The typhoon may lead to vessel bunching and backlogs, creating a ripple effect of delays at Southeast Asian ports, which are already experiencing average congestion of two to three days," said a Southeast Asian freight forwarder.

In the Australian market, spot container freight from North Asia to both east and west coast Australia declined $100/FEU in the week to Sept. 19 amid consistent cargo volumes in their traditional peak season.

In a strategic move, carriers are opting to eliminate the Oct. 1 General Rate Increase while introducing a mid-month GRI, anticipating a surge in market activity following China's Golden Week, according to industry experts, including a forwarder and a shipper. But a typhoon just before the festive period could complicate things and add to shipper woes, they said.

"The typhoon, arriving just before Golden Week, could significantly disrupt port operations," an Australian port authority said.

Platts assessed PCR 45 -- North Asia to East Coast Australia -- at $2,500/FEU, and PCR 47 -- North Asia to West Coast Australia -- at $2,600/FEU, both stable on Sept.22.

Platts assessed PCR 49 -- Southeast Asia to East Coast Australia -- and PCR 51 -- Southeast Asia to West Coast Australia -- at $2,000/FEU, both unchanged on Sept.22.

The US market is not expected to see impacts from storm delays, given frontloading ahead of Golden Week.

"It's evident that US retailers piled up holiday commodities back in July to avoid uncertain tariff impact," a China-based carrier said.