03 Nov The busiest shipping ports in China And How to Get The Most from Them
Eight of the world’s 17 largest and busiest shipping ports are located in China, including Shanghai Port, Shenzhen Port and Ningbo Port, which are the top three ports moving over 92 million TEUs per year, reports Becky Harris of ArcBest. Greater China, including China, Hong Kong, S.A.R, and Taiwan, accounts for more than 28% of all global trade, the World Shipping Council reports.
For shippers moving Asia-Europe freight, the sheer volume and flurry of activity in the world’s leading ports means greater difficulty. Knowing how the largest ports compare and what it means for shippers can help reduce expenditure on ocean freight, improve efficiencies in the supply chain, and improve carrier selection. Sensitivity also provides a better understanding of ocean freight rates and how to control costs.
What are the top challenges in China’s busiest ports The challenges in China’s top three ports reflect the typical growing international trade pains.
Customs Today estimates that the Port of Shanghai has experienced annual growth of nearly 5 percent with stronger demand from Asia-Europe trade lanes. Strong growth leads to higher volume per day, lower freight rates and higher capacity utilisation. This means struggling to protect container spacing and request for documentation that is error-proof. The Port of Shanghai’s sheer volume and size is its main problem.
Over 10 million people live in the Port of Shenzen, north of Hong Kong, and its namesake city, Shenzhen. The deep-water Port of Shenzen, known for its manufacturing prowess, features 140 berths and hosts 39 shipping companies. The intense focus on manufacturing in the area makes shipping from Shenzhen Port impractical for companies shipping from production centres elsewhere in China. The Port of Shenzen’s rapid development also leads to confusion in paperwork processing and freight management.
The Ningbo Port, located in the province of Zhejiang, is one of the largest northern Chinese ports and is known for its crude oil and mineral terminals. This port is distinguished by a history of more than 7,000 years. It manages a wide range of goods from textiles, shoes, consumer electronics, and building materials. Usually, shipping a TEU from Ningbo Port is less expensive than the larger ports, but it comes with a drawback. The spread of congestion from other Chinese ports, i.e. the Shanghai Port, has resulted in additional charges for spot rates and small infringement denials. Major companies such as Maersk, CMA CGM, Shell and MSC are working through the Rotterdam-developed Pronto to deliver app-based documentation and storage in the Port of Ningbo. Sadly the use of new apps and technology is complicated by state-owned companies running the Port of Ningbo, notes Seatrade-Maritime.com.
Where to get the most out of the largest and busiest ports in China.
You can make or break your shipping strategy by selecting the right ports in China. Some of China’s top shipping ports may be highly congested and require paperwork from mountains. Others may be able to offer digital management to reduce delays. Instead of trying to navigate the top ports ‘ complexities and congestion, shippers should follow a few simple tips to get the most out of China’s ports.
Defines the right terms of contract and service, also known as Incoterms, noted in a previous blog from Prime Freight. Which Incoterm you choose can leave suppliers to handle goods transport, manage paperwork and inspection processes. Incoterm selection covers the purchase of cargo or marine insurance, the type of container used and the designation of the shipment. Designation for shipping includes full loads of containers and less than load of containers. Generally speaking, rates for the top three Chinese ports for full container loads will be similar, if not identical. Prices for lower than container loads, however, may vary considerably.
Leverage alliances between ocean shipping carriers. With several carriers cancelling shipping lanes following higher fuel levels and demand, shippers need to know which carrier alliances are available and which offer the best prices. Of example, not always the correct rates are the best ones. Fees for demurrage, additional costs and delays raise the shipping costs for ocean freight. Alliances provide an opportunity to benefit from lower prices.
Diversify the use of carrier and alliance. Ocean freight prices for places and contracts are subject to change. In some cases, shippers may be unable to meet minimum volumes of ocean freight. Failure to achieve minimums in volume and quantity invalidates reduced or deferred freight charges and increases costs. Even the rates of the Alliance may change. So, to provide all shipping options, never rely on a single alliance. Some carriers may offer lower surcharges significantly. Hapag-Lloyd, for example, stands out with the lowest rise in EBS freight price of just 1 USD. Other opportunities for shipping strategy diversification include working with smaller ports and smaller carriers.
Let someone else do shipping and handling Asia-Europe ocean freight. Trade between Asia and Europe is changing and becoming more costly. Emergency bunker surcharges (EBS) will become more popular aspects of deciding ocean freight rates with increasing fuel prices. Instead of attempting to monitor all EBS and fees in all China’s ports and hundreds of commercial lanes and routes, use digital freight forwarding services or outsource freight management and forwarding to an expert such as Prime Freight. Digital freight forwarders, or you may call online freight forwarders, create rate transparency for shippers, and increase freight expenditure and processing management. For example, a few clicks offer shippers the opportunity to streamline freight management rather than waiting days for freight quoting and freight booking. It reduces limbo time freight and lowers overhead for each delivery effectively. — Another vital aspect of various ports and cities ‘ difficulty navigation.
The top three ports are good for a variety of products, but learn a little bit more about the area’s geography and its free trade zones (FTZs) can further reduce congestion on your ports in China.
Throughout China, there are eleven FTZs as treaty ports, acting as a go-between for shippers dealing with congestion in the busiest ports and demand for shipping on the same day. This is part of what makes shipping ports special in China. China’s shipping ports can make it happen, no matter what you want or when you need it.
Understanding the characteristics of FTZs will help pick China’s ports, exploit new ocean shipping technologies, and develop international trade ties. In addition, FTZs have distinct advantages, such as enhanced free trade, increased foreign investment, and the use of new legal ways to transfer more goods for less.
Shippers who take the time to consider China’s FTZs will bring together the final piece of the puzzle in the choice of international trade ports in China. The following table details the size and product / purpose of each of the 11 FTZs: 1 Chongqing Free Trade Zone: 120 km2 An important hub for connecting “One Belt, One Road,” “Western Development” and “Yangtze River Economic Belt” Open for high-end manufacturing and tariff-free services 2 Fujian Free Trade Zone: 118 km2 Promoting investment in, and trade with, Taiwan Develop tourism and shi. Because growth is inevitable, shippers should consider outsourcing to an accredited freight forwarder the process of importing, exporting, and managing China’s shipping ports. Things are changing, and shippers will be better able to streamline supply chains and remain competitive if they adapt to changes. In addition, better control over shipping in Asia and Europe