As the Lunar New Year approaches, what should be the golden period for export companies to finalize shipments has turned into a logistical nightmare. Major ports in Southern China—Yantian, Nansha, and Shekou—are experiencing severe congestion, worse than in previous years. While stable shipping rates initially brought relief, the ports' current "collapse" has triggered an early "appointment slot battle," leaving freight forwarders and traders describing the situation as "more chaotic than the Spring Festival travel rush."
Port Overload: Appointment Slots Vanish, Movement Grinds to a Halt
Signs of congestion emerged in late January, but conditions deteriorated rapidly in February. Appointment slots for container returns disappear within seconds of being released. Terminal yards are at full capacity, packed with endless rows of containers. Outside the ports, truck queues stretch for kilometers, forming seemingly endless lines. Additional emergency control measures implemented by terminals have only worsened the pre-holiday shipping crunch.
On-the-Ground Reality: A Snapshot of Port Congestion
- Yantian Port: As Southern China's most critical trade hub, Yantian faces the worst congestion. Freight forwarders report only about 1,500 daily slots for container returns, all claimed within an hour. Truck queues exceed three hours, severely hampering operational efficiency.
- Shekou Port: The "appointment slot battle" is equally intense here. Pre-holiday shipment surges, combined with shipping lines overbooking cargo space, have overwhelmed yard capacity. Many forwarders say securing a slot is nearly impossible even with constant page refreshing.
- Nansha Port: The congestion here is most critical. Terminals in Phases II and III are completely overwhelmed, with storage capacity nearing its limit. Chiwan Container Terminal has issued an official warning that some routes cannot process basic documentation due to "overbooked voyages."
Tighter Controls: Shorter Return Windows, Heavy Penalties for Cancellations
To alleviate congestion, terminals have introduced stricter measures to improve efficiency:
- Shorter Container Return Windows: The previous seven-day window for returning containers before vessel departure has been cut to five days. This compresses exporters' timelines, adding operational pressure.
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Harsh Penalties for Cancellations:
To curb no-shows and wasted resources, terminals now impose strict penalties for appointment cancellations. Since January 28, drivers or transport companies face access restrictions:
- First cancellation: 3-day ban
- Second cancellation: 7-day ban
- Three cancellations by a transport company: 7-day ban for all its vehicles
Root Cause: Shipping Lines Overbooking Cargo Space
Despite stable freight rates and frequent blank sailings, why are ports still congested? The primary culprit is shipping lines aggressively overbooking cargo space to meet volume targets.
Normally, shipping lines release bookings at about 120% of actual vessel capacity to account for cancellations. This year, however, some routes have seen booking ratios as high as 140%-160%, exceeding standard limits by 40%-60%.
This flood of cargo, combined with limited terminal capacity, has created the current gridlock.
How Exporters Can Adapt: A Practical Guide
With congestion expected to worsen before the holiday, exporters and forwarders should consider these strategies:
- Plan Early: Schedule container loading and appointments 10-15 days in advance to buffer against delays.
- Lock In Costs: Secure trucking resources early as prices rise to control logistics expenses.
- Monitor Updates: Stay informed about terminal announcements to adjust plans promptly.
- Communicate Proactively: Engage shipping lines early if documentation or return issues arise.
- Explore Alternatives: Consider inland waterways, rail, or less congested ports to diversify risk.
As Southern China's ports remain gridlocked, the situation may intensify with the holiday rush. For exporters and forwarders, early preparation is the key to navigating this crisis and ensuring shipments depart on time.