How El Nino is affecting Asia's shipping industry
What's the story
Asia's shipping industry is facing unprecedented challenges due to an unusually active typhoon season. The situation has been particularly severe in Shanghai, the world's busiest container port. A.P. Moller-Maersk A/S recently issued a warning about the impact of these severe weather conditions on some of the region's largest ports, leading to delays in vessel arrivals.
Port congestion
Average waiting time at Chinese ports reaches 3.38 days
According to data from market intelligence firm Kpler, the average waiting time at Chinese ports has increased to 3.38 days per vessel, the longest this year.
In July, only one-fifth of container ships reached Shanghai on time, a study by Singapore-based maritime advisory firm Sea-Intelligence revealed.
The situation worsened in August with 12 tropical cyclones forming in the Northwest Pacific and South China Sea, the highest monthly total since 1961.
Shipping disruption
Coastal bulk shipping disrupted
The frequent tropical cyclones last month disrupted coastal bulk shipping, temporarily pushing up freight rates for iron ore, coal, and grains.
Khalid Hashim, Managing Director of bulk carrier owner Precious Shipping Pcl, revealed his ships had been delayed by 10 to 20 days while trying to berth at Chinese ports due to the bad weather conditions caused by these typhoons.
Climate impact
El Nino intensifies typhoon activity in East Asia
The rapidly strengthening El Nino is driving the intense typhoon activity in East Asia.
This climate phenomenon usually leads to an increase in powerful storm formation in the Northwest Pacific.
UK-based commercial forecaster Tropical Storm Risk predicts that this year's typhoon season could be one of the most intense on record due to these changes caused by El Nino.