Ningbo port on 'yellow alert' after new Covid-19 outbreak

Port of Ningbo, China

Ningbo is China's second busiest container port, after Shanghai. The port of Ningbo is currently on "yellow alert" after a number of Covid-19 infections were detected. In the worst case scenario, if the port of Ningbo - which was closed in August last year - is closed in the near term, along with Shanghai remaining closed for the third week, the port congestion will be more severe.

As of April 11, Ningbo has 11 new Covid-19 cases, with an average of 13 infections over the past seven days. Meanwhile, Shanghai reported 23,342 cases of Covid-19 on April 11 as China faced its worst outbreak since the pandemic began in Wuhan in December 2019, with more than 165,000 infections.

UK logistics firm - Woodland Group - has warned that warehouses in Ningbo's Beilun port area are full as goods from Shanghai are being diverted there.

Woodland Group said, "Space is tight and there is a lack of 40' & 40HC equipment. Meanwhile, in the North, many factories in Qingdao are still closed with bookings postponed or cancelled and blank sailings increasing throughout April".

Linerlytica analyst Tan Hua Joo told Container News that part of Shanghai's cargo has been diverted to Ningbo since the lockdown.

“If Ningbo is also locked down, then these volumes will have no viable alternatives so it would have a big impact on the supply chain for both exports and imports in the Jiangsu and Zhejiang regions.” said he.

In a statement issued on April 11, Maersk Line said that some ships will skip the Shanghai port.

The Danish group said, “Due to the impact of the lockdown, we have seen an increased yard density for dangerous goods and reefer containers in Shanghai terminals. We recommend customers, when possible, ship or divert the cargo to other Chinese destinations or other markets in order to avoid the congested port. There is a possibility that cargo arriving in Shanghai is being diverted to alternative locations.”

Maersk Line added that its trucking service from/to Shanghai will be more affected by the shutdown, but it can provide intermodal services between Shanghai and neighboring cities nearby, via barge or rail.

Woodland added that while the port of Shanghai was operating normally, trucking services across China were disrupted as drivers had to undergo mandatory Covid-19 testing requirements, reducing road transport capacity and causing the price to continue to increase.

French logistics company GEODIS advises that due to a significant drop in exports from Shanghai, THE Alliance has cancelled at least 36 sailings to Shanghai, while the Ocean Alliance has also cancelled six sailings to-date.

Meanwhile, amid the new Covid-19 outbreak in Guangzhou, Shekou Container Terminals (SCCT) has suspended imports of frozen meat and seafood, according to a Hapag-Lloyd announcement, which suggests Note that shippers divert their cargo to Yantian, China or Hong Kong ports.

Read more:

• Concerns about port congestion increased when Shanghai began to be blockade
• Tianjin Port tests Covid-19 for all workers when the city  partially locked down
• Ningbo terminal shuts and what will happen if Covid hits more ports in China

Source: Phaata.com (According to ContainerNews)

Phaata - Vietnam's First Global Logistics Marketplace
► Find Better Freight Rates & Logistics Services