Image: Pixabay
Port congestion in China and higher fuel costs have led to an increase in freight rates for bulk commodities, the report said. AgriCensus on September 22nd.
Rates on most routes monitored by AgriCensus increased for the second week in a row.
Congestion at Chinese ports remained a key factor affecting global freight markets, with large port inventories creating bottlenecks and queues of ships, according to the report.
“The increase in freight is still due to port congestion as high inventories at Chinese ports continued to rise throughout the week,” a Chinese freight trader told AgriCensus.
The aftereffects of Typhoon Chanthu which hit the Chinese coast on September 13 were still affecting logistics at local ports, the report said.
“After the typhoon, congestion returned in China in all four shipping sectors; Capesize, Panamax, Supramax and Handymax,” said another freight trader.
{module Form RD}
Congestion has also increased due to recent COVID-19 outbreaks, according to trade sources, with increased quarantine measures causing further delays.
The port city of Putian, for example, had been under lockdown since September 10 due to one of the most serious Covid outbreaks recently reported in China, said the AgriCensus .
“Port operations have likely been affected by the recent Covid outbreak in Putian ports,” said a Chinese trader.
Meanwhile, freight costs were also affected by rising fuel prices, according to the report.
Freight costs for most routes increased slightly during the period monitored by AgriCensus, with Panamax rates between US Pacific Northwest ports and China now at US$44.56/tonne and those for shipments from southeastern Brazil to China increasing to US$66.62/tonne.
Panamax rates from US Gulf ports to China remained stable at US$81.18/t as operations progressively resumed following disruptions related to Hurricane Ida, according to the report.
Cargoes crossing the Atlantic from the Americas to Europe increased compared to the previous week with Panamax routes from Brazil and the US Gulf to the Netherlands valued at US$ 22.37/tonne and US$ 32.10/tonne respectively, said the AgriCensus .
In the Black Sea region, Panamax freight rates for China-bound cargoes rose to US$65.18/t, while ships crossing the Mediterranean to North Africa stood at US$35.00/t, as demand from North Africa was robust, according to the report.
This text has been automatically translated from English.
Source: Oils & Fats International (OFI)
