Chinese ports see extensive queues as they struggle to unload record volumes of crude

China scooped up cheap barrels in April and May when the oil market was virtually paralysed by coronavirus lockdowns. But now Chinese ports are struggling to unload record volumes of crude with storage tanks full, according to traders and shipping data. 

More than 80 million barrels of crude oil are currently waiting to be discharged from tankers in Chinese ports, Refinitiv Eikon data showed. Half of those are at the Qingdao port area in Shandong province, where the waiting time is two-three weeks or sometimes even longer, according to traders.

During the last ten days of June, major Chinese ports saw crude oil handling volume up 33.9% year on year and port inventory up 28.9%, according to China Ports and Harbours Association data. For the whole month, crude oil handling volume rose 22.51%, the data shows.

Of the barrels still waiting to be offloaded, nearly 20 million were loaded in April and about 50 million in May, according to Refinitiv Eikon data. They span a variety of grades from Russian Urals to exotic Congo Djeno Blend.

The congestion looks set to persist throughout July as there are still many tankers waiting to offload and more on the way. 

But millions of tonnes of new storage space in Shandong are to be opened for use in the second half of 2020, which may eventually help to offset congestion in the ports. 

For more information visit english.chinaports.org

7th July 2020