Push Admin

Major container ports in China see worsening congestion after COVID cases

Article (news)

Reuters

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Containers are seen at the Yangshan Deep-Water Port in Shanghai, China October 19, 2020. Aly Song, Reuters/File Photo" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/life/08/12/20210811-containers-yangshan-deep-water-port-china-rtr.jpg"/><figcaption>Containers are seen at the Yangshan Deep-Water Port in Shanghai, China October 19, 2020. <em>Aly Song, Reuters/File Photo</em></figcaption></figure></div><p>BEIJING/SINGAPORE - Congestion off China&#x27;s top two container ports Shanghai and Ningbo is worsening following the shutdown of a container terminal in Ningbo where a COVID-19 case was detected this week.</p><p>Tighter restrictions to fight China&#x27;s latest coronavirus outbreak are starting to hit more parts of the economy. The highly transmissible Delta variant has been detected in more than a dozen cities since late July.</p><p>Forty container vessels were waiting at the outer Zhoushan anchorage on Thursday, up from 30 on Aug. 10 when a worker at the Meidong container terminal tested positive for COVID-19, data tracked by Refinitiv showed.</p><p>Meidong terminal has suspended all operations since early Wednesday, while other terminals in Ningbo imposed restrictions limiting the number of people and cargos entering port areas.</p><p>Shipping company CMA CGM put out a note on Thursday saying that some vessels will be re-routed to Shanghai or skip port calls at Ningbo. Hapag-Lloyd expects the suspension in Meidong to cause delays in some planned sailings, according to a company statement.</p><p>Ports in nearby Shanghai, where many vessels are being re-routed, are seeing the worst congestion in at least three years. About 30 vessels are queuing outside Yangshan port, a key container terminal in Shanghai, Refinitiv data showed.</p><p>Ports in eastern China have been resuming operations and clearing backlogs following typhoon In-Fa, which dented container handling volume by 10% in late July from the same period last year, according to data from China Ports and Harbours Association.</p><p>The latest jams follow massive disruptions to container handling in southern China in June, when ports near Shenzhen imposed stringent COVID-19 containment measures leading to dozens of container vessels stuck in traffic.</p><p>The latest wave of port congestion in eastern China could further drive up container shipping rates, which recently topped $20,000 per 40-foot box for the first time on the critical China-U.S. route as rising retailer orders ahead of the peak U.S. shopping season added strain to global supply chains.</p><p>&quot;Businesses should be acting now to make contingency plans for the holiday season. There is a real risk that in 2021 consumers will have the cash to spend but that retailers will struggle with availability of stock, volatility of costs and their own financial viability,&quot; said Simon Geale, executive vice president at Proxima, a supply chain consultancy.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1638000" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Tighter restrictions to fight China's latest coronavirus outbreak are starting to hit more parts of the economy. 