Date Added: 27 June 2023
Container export dwell time at Chinese ports falls
With a comprehensive portfolio of international ocean freight forwarding services through China’s main container shipping gateways, Davies Turner notes that reports based on data provided by FourKites, the duration of ocean dwell times, which refers to the time between gate times and vessel departure/arrival, has remained consistent for China's exports at 4.8 days since March.
However, import dwell times have been gradually increasing since the beginning of March and have reached 5.2 days. FourKites also reported a significant 44 percent decline in shipment volumes from China to the USA between April 2022 and April 2023, accompanied by a decrease in transit times.
By utilising a 60-day rolling average, the average duration for ocean shipments from China to the US in April was 35.6 days, marking a decline from the peak of 55.4 days recorded in March 2022.
However, the trend of decreasing transit times may face challenges ahead, as average transit speeds hit a low point in March 2023, which reflects a deliberate reduction in sailing speeds to manage capacity.
"As the global economy has softened, ocean capacity is plentiful, though there is still significant activity in global supply chains. Shippers are weighing their options and determining what their inbound networks need to look like, including where global supply should come from," said FourKites GM Glenn Koepke.
"China will always be a dominant player in global trade - however, we have seen many shippers look to Southeast Asia, India, and Latin America as alternatives while still keeping Chinese suppliers for the local market. Shippers, forwarders, and BCOs know that we are one event away from chaos, so while supply chains are seeing easing demand and logistics professionals are relieved to have a slight mental break, volume will pick back up as we head into peak season of Q3 and Q4."
For more information about Davies Turner’s ocean freight forwarding and logistics services, please contact ocean@daviesturner.co.uk or visit the relevant pages of this website.