A Container Port In Eastern China Suspends Operation Due To COVID-19 Case

One of Ningbo’s container terminals has closed due to a positive
Covid test, sparking fears of a Yantian-style nightmare for cargo
owners.

According to Chinese media, a port worker at Ningbo Meidong
Container Terminal tested positive this morning, prompting
authorities to suspend all operations for “epidemic
management”.

The terminal is part of Ningbo’s Meishan bonded area, which has
a 7m teu annual capacity. Meishan is one of Ningbo’s newest and
biggest terminals, used regularly by Ocean Alliance members Cosco,
CMA CGM and Evergreen.

The Ningbo-Zhoushan port complex handled 28.72m last year,
making it the third-busiest container port in the world.

Now, says forwarder Norman Global Logistics (NGL): “Effectively,
operators cannot pick up empty equipment or gate-in containers to
the terminal.

“More information is pending regarding the actions from carriers
and ports to re-arrange cargo to other terminals in the Ningbo
area, and which shipments and sailings may be affected. Most
carriers use this terminal, but also call at others in Ningbo, such
as Zhoushan.”

NGL noted a number of Asia-Europe vessels were due to call at
Meishan soon, including CMA CGM’s FAL3 and FAL5/FAL6 and Cosco’s
AEU3 and AEU1 services.

A spokeswoman for Maersk said the carrier was so far unaffected,
since it called at terminals in the Beilun port area of Ningbo,
rather than Meishan.

“However, since the Ningbo Meishan free trade port area was also
closed, three Maersk warehouses in the area have ceased operations,
as requested,” she added.

NGL MD Stefan Holmqvist said: “If the port closure is a long
one, then knock-on effects will be felt, as the other terminals in
Ningbo can’t fully absorb a longer closure of Meishan. This would
be similar to what we saw in Shenzhen when Yantian was closed –
other terminals did their utmost to compensate, but could not take
up the full lost capacity.”

Indeed, the ports of Shanghai and Ningbo were already heavily
congested, following the impact of typhoon In-Fa last month,
potential delays caused by increased Covid testing for port workers
and restrictions on vessel crew changes. There are reportedly some
140 containerships now waiting at anchorage outside the two
ports.

Akhil Nair, VP global carrier management and ocean strategy at
Seko Logistics, said the situation was the latest in a series of
“logistical dominoes” toppling over.

He told The Loadstar: “If indeed the port of Ningbo, or one of
the six terminals, is closed or impacted by reduced productivity,
then there will be a longer-term impact similar to Yantian.

“Carriers will need to decide if they omit the port call to
maintain whatever schedule reliability remains, or get into the
inevitable queue and congestion.”

One of Ningbo’s container terminals has closed due to a positive
Covid test, sparking fears of a Yantian-style nightmare for cargo
owners.

According to Chinese media, a port worker at Ningbo Meidong
Container Terminal tested positive this morning, prompting
authorities to suspend all operations for “epidemic
management”.

The terminal is part of Ningbo’s Meishan bonded area, which has
a 7m teu annual capacity. Meishan is one of Ningbo’s newest and
biggest terminals, used regularly by Ocean Alliance members Cosco,
CMA CGM and Evergreen.

The Ningbo-Zhoushan port complex handled 28.72m last year,
making it the third-busiest container port in the world.

Now, says forwarder Norman Global Logistics (NGL): “Effectively,
operators cannot pick up empty equipment or gate-in containers to
the terminal.

“More information is pending regarding the actions from carriers
and ports to re-arrange cargo to other terminals in the Ningbo
area, and which shipments and sailings may be affected. Most
carriers use this terminal, but also call at others in Ningbo, such
as Zhoushan.”

NGL noted a number of Asia-Europe vessels were due to call at
Meishan soon, including CMA CGM’s FAL3 and FAL5/FAL6 and Cosco’s
AEU3 and AEU1 services.

A spokeswoman for Maersk said the carrier was so far unaffected,
since it called at terminals in the Beilun port area of Ningbo,
rather than Meishan.

“However, since the Ningbo Meishan free trade port area was also
closed, three Maersk warehouses in the area have ceased operations,
as requested,” she added.

NGL MD Stefan Holmqvist said: “If the port closure is a long
one, then knock-on effects will be felt, as the other terminals in
Ningbo can’t fully absorb a longer closure of Meishan. This would
be similar to what we saw in Shenzhen when Yantian was closed –
other terminals did their utmost to compensate, but could not take
up the full lost capacity.”

Indeed, the ports of Shanghai and Ningbo were already heavily
congested, following the impact of typhoon In-Fa last month,
potential delays caused by increased Covid testing for port workers
and restrictions on vessel crew changes. There are reportedly some
140 containerships now waiting at anchorage outside the two
ports.

Akhil Nair, VP global carrier management and ocean strategy at
Seko Logistics, said the situation was the latest in a series of
“logistical dominoes” toppling over.

He told The Loadstar: “If indeed the port of Ningbo, or one of
the six terminals, is closed or impacted by reduced productivity,
then there will be a longer-term impact similar to Yantian.

“Carriers will need to decide if they omit the port call to
maintain whatever schedule reliability remains, or get into the
inevitable queue and congestion.”