The Yantian terminal, which is the third largest in the world, was closed for nearly a week in late May after some port workers tested positive for COVID-19
Disruptions at the Yantian terminal in the Chinese city of Shenzhen after a few workers tested positive for COVID-19 are causing shipping delays. The terminal, which is the third largest in the world, was closed for nearly a week in late May after some port workers tested positive for COVID-19.
In order to prevent the spread of the infection, local authorities have blocked off roads and neighboring business areas. Even a few cases of COVID-19 in ports are likely to cause massive global supply delays.
“The Chinese authorities are trying to crack down on smaller epidemics… It only takes a few cases to close large areas. We could see bigger impacts, ”Vespucci Maritime consultancy CEO Lars Jensen told the Financial Times.
Also read: Adani is no longer the 2nd richest Asian; the group loses Rs 1.59 lakh crore m-cap
Guangzhou garment factory owner Leslie Wang told the Daily that the situation was nothing short of a nightmare because “the goods have been piled up in the freight company and cannot be at all. shipped “. Wang had all of his workers tested and kept the production units functional.
Kuehne + Nagel Executive Vice President of Maritime Logistics Otto Schacht considers the disruption at the Yantian terminal to be particularly regrettable as it comes at a time when shipping is entering peak season. Schacht added that it will take 6-9 months to return to supply chain reliability before COVID.
Jensen de Vespucci Maritime believes, however, that the situation will not become normal before 2022.
The stalemate in Yantian has not only fueled fears of massive shipping delays. It has also resulted in increased transportation costs which could add to inflationary pressures and lead to higher prices for Chinese exports.
Congestion at the terminal, operated by Hutchison Ports, headquartered in Hong Kong, has impacted the operations of ports like Nansha in Guangzhou and Hong Kong and Shekou and Chiwan in Shenzhen.
The Guangzhou Terminal of Nansha Port handled 38 additional ships to ensure an uninterrupted flow of foreign trade while the productivity of Nansha Port fell by 20%.
Edited by Mehak Agarwal
Also read: New COVID outbreak in China disrupts trade; stirs fears of disruption