Super Typhoon Champi raises China port congestion concerns

Super Typhoon Champi strengthened into a Category 5-equivalent system over the western Pacific, with maximum sustained winds near its center reaching 240 kilometers/hour on Oct. 21, as it moved toward waters east of Taiwan and eastern China, raising concerns over port congestion.

"Champi will move across the western North Pacific toward the seas east of Taiwan in the next couple of days," the Hong Kong Observatory said Oct. 21.

Market participants said congestion was already causing delays of around four days at Shanghai and Ningbo and expected port disruptions to worsen following the typhoon.

"Congestion-related delays are expected to increase, with ports potentially affected for one to two weeks. Freight rates may also rise," a China-based shipper said.

"The typhoon is expected to impact the Chinese coast around Saturday and Sunday [Oct. 24-25], and by Monday [Oct. 26], we should have a clearer picture of the disruption," a Southeast Asian shipper said.

Carriers have been omitting port calls to avoid congestion, further tightening available space for the North Asia and Southeast Asia to Australia trade lane.

"September saw delays across Southeast Asia services, with around five vessel calls missed across four services, exacerbating the space shortage," an Australian port authority said.

Platts, part of S&P Global Energy, assessed PCR 45 -- North Asia to East Coast Australia -- at $5,300/forty-foot equivalent unit, and PCR 47 -- North Asia to West Coast Australia -- at $5,200/FEU, both stable day over day.