Chinese blackout on international navigation radars – CVBJ

Supply chain collapse

Knowing your location is crucial for businesses to control freight volumes and better optimize logistics by predicting congestion on sea routes.

Ship loaded with containers in Tianjin port.EM




Updated on Saturday, November 27, 2021 – 01:34

The sea crisis podcast: as it threatens to collapse next Christmas

New exhaustion problem global supply chain: Ships in Chinese waters disappear from the radars of data companies that monitor the movements of ships around the world. Something that doesn’t help alleviate the bottlenecks that plague all economies. This information is crucial for businesses to understand freight volumes and better optimize logistics by predicting congestion on sea routes.

Maritime traffic has been declining since the end of October due to new legislation in Beijing which puts stones at public access to ship data. In recent weeks, as their sources explained to., Some domestic suppliers in China have stopped providing information to foreign companies as a direct result of the new rules with which the Chinese government intends to increase its control. on how national and foreign organizations collect and export data from the world’s second largest economy.

November 1, Privacy Act, which, according to Chinese media, aims to regulate and minimize the flow of data going abroad. Now, companies that process the data must pass a Beijing filter before they can allow the information to leave Chinese soil.

According to the Financial Times, the amount of Automatic Identification System (AIS) signals in Chinese waters, which provides locating positions on ships, increased from over 15 million a day in October to around 1 million per day in early November.

Maritime data companies can track ships around the world as they are equipped with the AIS system, which helps assess activity levels in Chinese ports which have been congested in recent months with supply chain issues. and pandemic controls. According to experts, AIS information is taken from continuous broadcasts and, although it can be collected using satellite data, for heavily congested areas or places where frequent updates are needed, the source of transmission should be earthly.

Christmas impact

Maritime traffic, one of the world’s leading providers of ship tracking and maritime intelligence, is among the foreign companies involved. “If this continues there will be a huge impact in terms of global visibility, especially as we enter the busy Christmas season with supply chains already facing huge challenges around the world. As a result, we don’t know when the ships are leaving and where from, and we don’t have the full picture of the port congestion that AIS offers us, ”he said. Anastasis Touros, AIS Network Team Leader at MarineTraffic, said ..

According to CNN Charlotte cook, business analyst of VesselsValue, his colleagues in China told him that some AIS transponders had been withdrawn from stations along the Chinese coast at the beginning of the month by order of the national security authorities. “Shipping companies rely on AIS data to forecast vessel movements, track seasonal trends and improve port efficiency. The lack of Chinese data could drastically affect the visibility of China’s ocean supply chain, ”Cook said. .

In China, the world’s largest exporter and a key center of the shipping industry, there are eight of the ten most important ports in the world. And Christmas is fast approaching.

“Chinese factories returned in 2020 after the country was shut down due to the Covid-19 epidemic, but since then manufacturing activity has slowed throughout 2021. The port of Yantian remained semi-closed for a month and a half in May and June 2021, while Ningbo It was briefly closed in August due to coronavirus concerns. Plant activity also declined in September due to power cuts resulting from restrictions on the use of electricity, ”he explains. Sara Hsu, Chinese financial technology expert and associate professor at the University of Tennessee.

Traffic jams since summer

Freighters have been in traffic jams since the summer for a variety of reasons ranging from lack of manpower, lack of equipment needed to transport containers or overcrowded warehouses. In China, supply chains have been affected by power outages – the country’s electricity grid could not meet the demand for coal while respecting the national policy towards a green transition – and the overwhelming increase in consumer demand.

To which must be added that, due to the zero Covid strategy, China prohibits personnel changes for foreign crews and recently imposed a mandatory seven-week quarantine on returning Chinese sailors. Even ships that have renewed their crews elsewhere must wait two weeks before being allowed to embark in China.

“Any restriction on shipping operations has a cumulative impact on the supply chain and causes real disruption,” he said on Thursday. Guy Platten, Secretary General of the International Chamber of Shipping, representing shipowners and operators.

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