China’s leading terminal operators expect no quick fix for the global port congestion and supply chain disruptions. The logistics bottleneck and a shortage of containers is unlikely to be improved in short term with the resurgence of coronavirus in both China and the West, according to senior managers at Cosco Shipping Ports and China Merchants Port Holdings. “The situation will persist for the time being,” Cosco Shipping Ports managing director Zhang Dayu, told a press conference. He said the clogged landside transport continues to pose a challenge to container port operations, squeezing yard capacity, reducing box turnover, and affecting terminal productivity.

The company has seized the opportunity to increase its income by charging demurrages, receiving ships on extra sailings, and raising terminal handling fees. “We have put the mark-up request to all our clients and have achieved good results,” said Mr Zhang.

Wang Xiufeng, chief executive of China Merchants Port, said stricter control measures triggered by the new wave of coronavirus infection in China has impacted some of its operated ports, leading to longer berthing time and reduced terminal handling capacity. Chiwan, one of its container terminals in Shenzhen, was said by Maersk to have been affected by the lockdown measures in the city.

Mr Wang said port operation in Shanghai, another virus-stricken Chinese shipping hub, was normal. Trucking capacity, however, were restricted by the government lockdown policies, while his company is using more barge services to haul cargo from the hinterland to minimize the disruption, he added. “Overall, the supply chain is still under strain and will see no palpable improvement this year.”

Deputy general manager Lu Yongxin said China Merchants Port is establishing a communication system to include governments and shippers among other stakeholders along the logistics chain to share information that can alleviate the container shortage and port congestion. The Hong Kong-listed company reported a 58.1% surge in full-year net profit to HK$8.1bn ($1bn). Revenue rose 32.5% to HK$11.9bn. Total throughput of containers increased by 12% to 135m teu. The growth was mainly driven by the increase in container volume in the Pearl River Delta and the Yangtze River Delta regions in mainland China, according to a stock exchange filing.

Cosco Shipping Ports said its full-year profit increased 2.1% in 2021 to $354.7m while full-year revenue increased by 20.7% to $1.2bn for 2021. Excluding one-off items, the surplus rose 23.6% to $332.5m. Total throughput increased by 4.4% to 129.3m teu.