13 August 2021

CLOSURE OF CHINESE PORT COULD LEAD TO MAJOR DISRUPTIONS

A large container terminal in Ningbo, China, the world’s third-busiest container port, has halted operations on Wednesday morning after a dock worker tested positive for coronavirus. The terminal, which has a 7 million TEU annual capacity, is one of Ningbo’s newest and biggest terminals, used regularly by Ocean Alliance members Cosco, CMA CGM and Evergreen.

Ships are now beginning to divert from Ningbo to Shanghai, and carriers warn customers of expected delays in planned sailings. Meanwhile, the other terminals in the Chinese container port remain open, but they are already under pressure with waiting periods of 2-3 days before container vessels can berth. The shutdown at Ningbo is causing concern for added disturbances in an already pressured container market dealing with delays, shortage of equipment and high freight rates due to an extraordinarily high demand. The ports of Shanghai and Ningbo were already heavily congested, following the impact of typhoon In-Fa last month, potential delays caused by increased Covid testing for port workers and restrictions on vessel crew changes. There are reportedly some 140 containerships now waiting at anchorage outside the two ports.

Analysts warn that if the infection spreads to other terminals in the port of Ningbo, it could spell disaster for the global supply chain. They cite the recent Yantian crisis, when the incidence of a few infected workers at the port in Guangdong paralysed the entire terminal for more than a month.

Source: The Loadstar, ShippingWatch