Shanghai port, the country's busiest, is becoming increasingly congested with US-bound vessels amid a frantic rush of shipments to the world's biggest economy.
But the benefit to shipowners may be short-lived. A huge influx of new mainland-constructed vessels threatens to exacerbate oversupply in the shipping industry, which is still suffering from the impact of the global financial turmoil.
'We've been talking about a super-spike in China's outbound trade since the end of December, and in recent weeks conditions have approached pandemonium for exporters trying to get cargo out before the Lunar New Year,' said Transport Trackers, a Hong Kong transport consultancy. 'Getting cargo out of Shanghai has been hell and cargo shippers have been forced to put cargo out at whatever rate being asked.'
The rise in shipments from Shanghai, the world's second-busiest port, follows improving throughput in Shenzhen and Hong Kong last month. Shanghai, Shenzhen and Hong Kong saw container throughput rise 7.1 per cent, 5.4 per cent and 3 per cent respectively in December, after months of decline.
Retail sales in the United States are expected to rise 2.5 per cent this year, after falling 2.5 per cent last year, according to the US National Trade Federation.
Transport Trackers cited a few 'crazy examples' in Shanghai port in the past two weeks, including one importer being forced to cancel a shipment and rebooking the shipment for an extra US$400. Large US retailers were shifting the higher costs of 'panic bookings' to their suppliers, it said.
'All container carriers withdrew capacity by 11 per cent in world tonnage last year, because shipping rates were just too low and the supply was too much. Carriers are exercising restraint in laying up tonnage,' said Stanley Shen, an investor relations executive at Orient Overseas (International) Limited.