Port, shipping firms divert vessels after a Ningbo terminal shuts
Ports and shipping companies are diverting vessels from a
container terminal in China's busiest marine transportation hub which was
forced to close after a coronavirus case emerged, as the pandemic strains
global supply amid rising retail orders.
Meidong container terminal in eastern Ningbo suspended
operations on Wednesday after a COVID-19 case was detected, while nearby Shanghai
also recorded the worst congestion in at least three years.
On Friday, 37 vessels were waiting to call at Ningbo and 26
vessels queuing for Shanghai, slightly down from 39 and 29, respectively, on
Thursday, Refinitiv data showed.
The lockdown of Meidong terminal has sent ripples through
the global shipping market, coming ahead of the busiest shopping season at
year-end and on top of several supply chain disruptions caused by resurgences
of COVID-19, extreme climate events and labour shortages.
"The company will actively negotiate with the shipowner
... and reasonably divert the vessels due to call at Meidong to other port
areas," said Meidong's owner, Ningbo Zhoushan Port Co Ltd, in a statement
on late Thursday.
The world's leading container line, Maersk, said in a note
that a few of its vessels due to call at Meidong would be rerouted to other
terminals in Ningbo, while one vessel serving an Asia-South America route will
skip docking at Ningbo next week.
Hapag-Lloyd also said three of its vessels would skip Ningbo
next week, expecting congestion and delays as vessels to Meidong are diverted
to other terminals in Ningbo.
According to Ningbo Zhoushan port firm, operations at its
other terminals in Ningbo were operating normally, but it will only accept
bookings for export-bound containers within two days prior to the arrival of
vessels to limit the number of people at ports and to reduce backlogs.
Meidong terminal handled 5.44 million twenty-foot equivalent
units (TEU) in 2020, accounting for about 17% of total container handling
volume in Ningbo, transportation ministry data showed.
China's Yantian port in the south had slowed productivity
due to a COVID-19 case in late May, causing weeks-long port congestion in the
region and heavy backlogs at port yards.
Shanghai port has also tightened disinfection and quarantine
measures and has asked front line workers to stay at port after the COVID-19
case was found in Ningbo. But no operational disruption has been reported.
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