Complex logistics hurdles affecting China's seaborne bulk shipping routes

High demand for bulk vessel space for mineral raw materials exported from China is driving costs for this transport option higher, with market participants reporting an array of factors that are affecting trading conditions and delivery timelines.

Container freight costs for China's seaborne route have remained high well into March, with ongoing disruptions reported by participants active in metals and minerals trading.
Suppliers have shifted en masse to bulk shipments, where they could, which has led to increased costs for bulk freight, longer lead times and consequential issues.
"The breakbulk [shipping] market also faced cost increases, as it followed what was happening with container traffic," a China-based logistics broker said, citing higher bunker prices, strict Covid-19 health and safety rules at Chinese ports and a slower vessel turnaround. "Waiting times of up to two weeks [for loading] are not an exception anymore, but unfortunately have become standard."

Such port delays prior to loading force suppliers to pay to store the cargo at local facilities, bringing an additional cost that increases...

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