Container vessels are beginning to divert from Ningbo to Shanghai, following a decision this week to close the Ningbo Meishan Island International Container Terminal due to Covid. The terminal accounts for about 25% of the volumes at the world’s third-largest port, sparking concerns of further disruption to supply chains.
A port worker at Ningbo Meidong Container Terminal tested positive earlier this week, prompting authorities to suspend all operations for ‘epidemic management.’ The terminal is part of Ningbo’s Meishan bonded area, which is one of the city’s newest and biggest terminals, used regularly by Ocean Alliance members Cosco, CMA CGM and Evergreen.
CMA CGM said cargo operations on its vessels, Samson and Rivoli, which are at berth, were on hold until the terminal re-opened. Hapag-Lloyd warned customers of an expected delay in planned sailings, while Cosco also said some ships would omit Ningbo this week.
The Ningbo-Zhoushan port complex ranked as the third-busiest container port in the world last year. The recent three-week closure of Yantian International Container Terminal following a Covid outbreak caused major disruption to supply chains. While there has only been one case reported at Ningbo, China’s Covid policy has also seen restrictions at other ports, adding to the likelihood of congestion.
Meanwhile, at Shanghai port, several mainline operators have launched a centre to co-ordinate the transport of empty containers. The centre is in the comprehensive bonded zone of Yangshan Port – one of Shanghai’s most important sub-ports – and major shipping operators Maersk, MSC, CMA CGM and Evergreen are involved. In the first six months of this year, Yangshan processed nearly half Shanghai’s entire throughput, and many empty containers from transpacific and Asia-Europe services are also handled at Yangshan.
The slow return of empty containers is one of the factors driving runaway freight rates.
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