Port Congestion in Shanghai and Qingdao: Navigating Shipping Delays in the Steel Grating Industry

In recent weeks, the global shipping industry has faced a significant challenge that is impacting supply chains worldwide—severe port congestion in two of China's busiest ports, Shanghai and Qingdao . This congestion has caused substantial delays, with some shipments, including those from NJMM, experiencing a delay of approximately two weeks compared to the original schedule.

For our partners in the Steel Grating industry, understanding the root causes of these delays and how we are proactively managing them is essential. This situation underscores the importance of supply chain resilience and transparent communication with our clients.

The Current Situation: Why Ports Are Congested

1. 1

   Adverse Weather Conditions: Both ports have been affected by a series of severe weather events, including heavy fog and powerful typhoons . These conditions have periodically forced the suspension of port operations, creating a backlog of vessels waiting to berth and unload or load cargo. As one report indicates, Shanghai port has recently experienced berthing delays lasting up to 36 hours due to such weather .

2. 2

   Post-Peak Season Surge: Following the traditional peak shipping season, there is often a residual surge of cargo as manufacturers continue to ship goods to meet international demand. This sustained high volume of export containers contributes to the strain on terminal capacity.

3. 3

   Global Supply Chain Imbalances: The ongoing ripple effects of global trade imbalances mean that containers are not always where they need to be. This can lead to logistical complexities at major hubs as shipping lines reposition empty equipment. The result is higher dwell times for import and export containers.

Impact on Steel Grating Shipments

For businesses like NJMM that export large volumes of steel grating, the consequences of these delays are substantial. Steel grating, particularly in large dimensions like 6000×1000mm panels, is considered heavy-lift, out-of-gauge cargo, which can be more complex to handle and may be deprioritized for more straightforward containerized goods during peak disruption. While our production capabilities remain robust and our manufacturing team continues to meet our high-quality standards, the bottleneck has shifted to the final delivery link. The shipment of nearly 100 tons of serrated Galvanized Steel Grating to one of our key international clients, for example, has been delayed by approximately two weeks. This is due to a combination of vessel schedule changes and the accumulation of cargo at the terminals waiting for vessel space. This two-week delay is currently a reality for many exporters using these ports and is beyond the immediate control of any single manufacturer.

Our Proactive Response and Communication

• Immediate Client Notification: We promptly informed all affected customers about the potential shipping delays and the reasons behind them. This proactive approach ensures that project managers and site coordinators can adjust their installation schedules accordingly, avoiding costly on-site downtime and unexpected labor costs.

• Exploring Alternative Solutions: Our logistics team is actively working with our freight forwarders and shipping lines to identify potential alternatives. This includes exploring options to reroute cargo through less congested ports, if feasible, or securing alternative space on vessels with different schedules. While changing a shipping route or method for large-volume cargo is not always possible, we are constantly evaluating every opportunity to expedite delivery.

• Enhanced In-Plant Storage: We are utilizing our warehouse capacity in Ningbo to hold finished goods that are awaiting shipment. This ensures that once the port situation eases, our products are ready to be loaded and shipped immediately, avoiding any additional production lead time.

• Temporary Warehousing at Departure Ports: In some cases, we may temporarily store goods at port-side warehouses to allow for the timely loading and dispatch of shipments as soon as vessel space becomes available, ensuring our client's goods are positioned for the earliest possible departure.

What This Means for Our Valued Partners

For our partners in the steel grating industry—distributors, contractors, and steel structure companies—this situation highlights the importance of building a resilient supply chain. While we cannot control the weather or global logistics, we can control our communication, planning, and service. We advise our partners to incorporate a buffer period into their project scheduling when sourcing materials from overseas. Factoring in potential logistical delays can help mitigate the impact on project completion dates. We remain committed to delivering the highest quality steel grating, including our full range of galvanized and custom products.

As the situation at the ports evolves, we will continue to provide our clients with regular updates on their shipment status. We are committed to navigating these challenges alongside you and minimizing the impact on your operations.