Container Backlog Worsens! Typhoon Halts South China Ports, Shipping Rates May Fluctuate

Container Backlog Worsens! Typhoon Halts South China Ports, Shipping Rates May Fluctuate

I. Typhoon “XX” Makes Landfall in South China, Port Operations Suspended

In September 2025, Typhoon “XX” struck the coast of Guangdong with sustained winds reaching Category 4 (strong typhoon level), accompanied by torrential rainfall. The storm forced major ports in South China to shut down, rapidly exacerbating container backlog issues:

1. Status of Key Port Closures

• Yantian Port (Shenzhen): Operations fully suspended for 48 hours, with flooding in storage yards leaving approximately 50,000 TEUs stranded.
• Nansha Port (Guangzhou): Partial berth damage delayed vessel docking schedules by over 72 hours.
• Kwai Tsing Container Terminal (Hong Kong): Storm surges disabled cranes, reducing import/export cargo handling efficiency by 60%.

2. Ripple Effects on Global Routes

• Trans-Pacific Routes: Vessels originally bound for the U.S. West Coast (e.g., Shenzhen-Los Angeles) diverted to Xiamen Port, adding 2-3 days to transit times.
• Europe Routes: Carriers like Maersk and MSC canceled some South China departures, delaying arrivals at European ports (e.g., Rotterdam) by 5-7 days.
• Regional Feeder Routes: Suspension of small-container ships on China-Vietnam/Thailand routes threatened perishable goods (e.g., Southeast Asian fruit, electronics).

Expert Warning: Slow port recovery could trigger a global supply chain crisis reminiscent of the 2021 Ever Given blockage.

II. Three Major Impacts of Container Backlogs

1. Short-Term Freight Rate Surges

• Spot Rate Spike: South China-U.S. West Coast 40-foot container rates rose $800 (12%) weekly, with forwarders imposing $200/TEU “typhoon emergency surcharges.”
• Contract Instability: Carriers prioritized spot market space, leaving some annual contract clients vulnerable to cargo rollovers.

2. Manufacturing Supply Chain Disruptions

• Pearl River Delta Factory Stoppages: Just-in-time production for electronics and automakers (e.g., Huawei, BYD) faltered due to component shortages.
• Export Penalties: Delays in holiday season goods (e.g., toys, apparel) to Western markets risked over $100 million in LC penalties.

3. Surge in Cargo Damage & Insurance Disputes

• Flooded Containers: Electronics and textiles left unprotected suffered water damage, with claims potentially reaching tens of millions.
• Insurance Loopholes: Some policies excluded typhoons, forcing cargo owners to prove port negligence for compensation.

III. Cargo Owner Strategies: Emergency Response to Long-Term Resilience

1. Clearing Backlogs Urgently

• Priority Triage:
  • High-value/time-sensitive goods: Expedited air freight (e.g., Guangzhou-Chicago charters at ~$8/kg).
  • Bulk commodities: Rerouted via northern ports (Qingdao, Tianjin) or China-Europe rail (Chongqing-Duisburg).
• Temporary Storage: Leveraged overflow warehouses in Dongguan and Huizhou.

2. Cost Control & Risk Mitigation

• Rate Hedging: Used Forward Freight Agreements (FFAs) to offset 3-month rate volatility.
• Insurance Top-Ups: Added “natural disaster clauses” to cover indirect losses (e.g., contract penalties).

3. Supply Chain Diversification

• Nearshoring Hubs: Established transit warehouses in Hai Phong (Vietnam) and Port Klang (Malaysia) to ease South China pressure.
• Supplier Networks: Reduced reliance on single ports (e.g., Yantian) by developing alternatives in East/North China.

IV. Historical Comparisons & Industry Recommendations

1. Lessons from 2021 Yantian Port COVID Shutdown

• A one-month closure then caused $15 billion in global delays.
• Key Improvement: Some firms now use digital twin tech to simulate container flows, boosting efficiency by 30%.

2. Typhoon “Haiyou” (2024) Response

• SF Express minimized e-commerce delays to 72 hours via “ocean-air” hybrid logistics.

Industry Calls to Action:

• Ports must upgrade drainage and mandate elevated container stacking.
• Shipping alliances (e.g., 2M, THE Alliance) should create typhoon-season slot-sharing protocols.

V. One-Month Outlook & Checklist

With more heavy rain forecast for South China through late September, cargo owners must:

1. Secure Priority Shipments: Pay premiums for “guaranteed space” agreements.
2. Revise Contracts: Shift typhoon risks to buyers via CIF terms (from FOB).
3. Adopt Tech: Deploy IoT container trackers for real-time monitoring of sensitive cargo.