12-08-2021 Container carriers spooked by fresh outbreak of Covid-19 in Ningbo, By Ian Lewis, TradeWinds
Container lines fear further congestion following an outbreak of Covid-19 at a container terminal at Ningbo port’s Meishan Island. Ningbo Meidong Container Terminal, a subsidiary of Ningbo Zhoushan Port Co, suspended operations on 11 August after a worker tested positive for Covid-19. That has led carriers to warn shippers of disruption to ship schedules as the prospect rises of worsening congestion in China’s eastern ports. “With this sudden suspension, we expect a delay in planned sailings that might affect your cargo planning,” Hapag-Lloyd said in a customer advisory. The carrier said it was “working on alternatives” and asked for understanding on “a matter which is beyond our control”.
Others, including France’s CMA CGM, are reportedly rerouting ships to Shanghai or skipping port calls at Ningbo altogether. The French operator and its Ocean Alliance partners — Cosco Shipping Lines, Orient Overseas Container Line and Evergreen — use the Meidong terminal for their services between Asia and Europe.
Other carriers, including Maersk, rely on terminals in the Beilun port area of Ningbo. The incident has rekindled fears of a repeat of the disruption caused by outbreak of Covid-19 at Yantian port in Shenzhen in late May, which led to long operational delays for most of June. “If the closure is prolonged, the effects may be significant, as the other terminals in Ningbo cannot fully absorb Meishan’s volumes for an extended time,” according to freight operator Norman Global Logistics (NGL).
Meishan is one of Ningbo’s newest and biggest terminals and processes 7m teu annually. “We are seeking clarification of the closure length and the actions that carriers and ports may take to rearrange cargo to other terminals in the Ningbo area,” NGL added. NGL, which has an office in Ningbo, said the port is already turning away ships from the terminal. “Effectively operators cannot pick up empty equipment or not gate-in containers to the terminal,” the company said.
The disruption looks set to aggravate problems of liner operators struggling to handle peak-season shipments from China to Europe and the US. Refinitiv data revealed up to 40 containerships were listed at the outer Zhoushan anchorage on Thursday, up from 30 on Tuesday, Reuters reported.
GardaWorld, a security consultant, said that shippers should consider alternative methods for shipping critical freight. Ningbo Zhoushan port, China’s second-largest container port by handling volume after Shanghai, handled 18.68m teu in the first seven months. The Meidong terminal accounts for around 25% of its cargo throughput.