Supply chain bottleneck warning issued

Supply chain bottleneck warning issued

A new study by the Royal Bank of Canada (RBC) has found that 20% of container ships are currently stuck in congestion at various major ports. According to the report, published on Tuesday and seen by Reuters, China’s Covid lockdowns, the conflict in Ukraine, and other strains are causing longer delays at ports, driving up costs.

RBC data shows that ships awaiting berth at the Port of Shanghai now tally 344. That is a 34% increase over the past month, with shipping from a warehouse in China to one in the United States currently taking 74 days longer than usual.

The same can be seen in Europe, where ships from China are showing up an average of four days late.

“Global port congestion is worsening and becoming increasingly widespread,” RBC analysts said, acknowledging that it’s hard to say when things will improve. The plethora of problems is having a “domino-like negative compounding effect across various markets,” they added.

According to the report, since the start of the war in Ukraine and the sinking of several ships in the Black Sea, insurers have hiked premiums to between 1% and 5% of the value of ships compared to the pre-war levels of 0.25%.

Meanwhile, marine fuel prices in Singapore, the world’s largest refueling port, have soared 66% over the past year.

“Many market participants thought that supply chains would be untangled by now, but this scenario has failed to materialize,” the report said. It showed that the average global delay of a ship’s arrival was still 7.26 days in March. The figure rarely topped 4.5 days during normal times.

The research also noted that the ban of Russian-flagged vessels from key European ports has led to a re-routed flow and is pushing increased container ship activity at those ports.

The aggregate Time of Turnaround (ToT) for the three largest European container ports – Rotterdam, Antwerp, and Hamburg – are 8%, 30%, and 21% respectively above their five-year normal levels.

“Significant compression of ToT times [is] required before we can confidently suggest a path toward normalizing shipping costs,” RBC analysts said, adding: “The problem? Things are getting worse.”

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Electricity prices in Germany are expected to jump to record highs next year, the Neue Osnabrucker Zeitung newspaper reported on Friday, citing the country’s local public utilities association
подробнее...

Russia has huge natural gas reserves that could last for more than a century, the head of state-owned Gazprom, Alexey Miller, said on Wednesday at the International Business Congress. “Our consumers,
подробнее...

One in six Italians, or up to nine million people, could sink into energy poverty due to soaring bills across the EU, Italy’s ANSA news agency reported on Saturday, citing the Italian General
подробнее...

The finance ministers of the Group of Seven influential nations announced on Friday their intention to ban maritime services transporting Russian oil if its price is not approved by ‘international
подробнее...

The Central Bank of Russia (CBR) is considering creating a compensation fund for local investors whose assets have been frozen by Western nations, Governor Elvira Nabiullina said on Thursday during
подробнее...

Russian energy major Gazprom's stock jumped 31% on Wednesday to 267.25 rubles per share (just over $4.43) on the Moscow Exchange, following the company’s announcement of bumper profits and dividend
подробнее...

Washington has imposed restrictions on the sale of certain high-tech computer chips to Russia and China, a number of US media outlets reported on Thursday, citing two major US chipmakers, Nvidia and
подробнее...

Japanese automaker Toyota has decided to shut down its plant in St. Petersburg, Russia's Ministry of Industry and Trade said in a statement on Friday.The company vowed to fulfill all of its social
подробнее...

Major European ports have signaled their readiness to facilitate the export of Russian fertilizers, UN Secretary-General Antonio Guterres said in an interview with RIA Novosti, published on
подробнее...

Nicaragua is ready to explore the use of the Mir payment system, developed by Moscow in response to Western sanctions, and allow the use of Russian credit and debit cards in the country, its minister
подробнее...

The Bank of Russia (CBR) is against the legalization of crypto-exchanges, exchangers and settlements in cryptocurrency within the country, RIA Novosti reported on Monday, citing the regulator’s press
подробнее...

One of Russia’s top banks, VTB has become the first lender in the country to launch money transfers to China in yuan, sidestepping the Western-controlled global financial messaging system SWIFT.“The
подробнее...

The proposal by the EU to place a price cap on Russian natural gas imports is a foolish, non-market-oriented plan that has no future, Russian President Vladimir Putin said on Wednesday.“Faced with
подробнее...

The share of Russian gas in the European Union market has plummeted from 50% to 9% since the beginning of the current year, French President Emmanuel Macron said on Monday. Russian gas imports by EU
подробнее...

The Moldovan government has launched a special website which will help citizens find firewood to heat their homes, authorities announced this week.“The site provides information about the nearest
подробнее...

Ukraine is ready to provide up to 30 billion cubic meters of his country’s gas storage facilities to the EU member states, according to the country’s Prime Minister Denis Shmigal.“We can offer our
подробнее...

The intense pressure placed on Russia by Western sanctions has forced the country to ramp up efforts to launch new factories and enterprises, according to Executive Director of the Russian-Chinese
подробнее...

Sri Lankan Transport Minister Bandula Gunawardane on Saturday apologized on the behalf of his country for detaining a Russian plane earlier this year that caused Moscow to suspend flights to the
подробнее...