Ningbo-Zhoushan's Meishan Terminal, China's third-largest container port, has resumed operations following a two-week shutdown. This comes as relief for businesses worldwide, grappling with persistent shipping issues. Yet, the crisis remains unabated, with experts forecasting up to 60 days for the situation to stabilize.
The shutdown commenced on August 11 after a terminal worker tested positive for Covid-19, resulting in the swift suspension of container retrieval due to a "system failure." The fallout impacted approximately 25% of the container volume in Ningbo, causing ripple effects in other Chinese ports and extending supply chain disruptions, which had already been put to the test by challenges in a different Chinese port, container scarcity, factory shutdowns in Vietnam, and the Suez Canal blockage in March.
Peter Sand, BIMCO's Chief Shipping Analyst, warned that businesses worldwide would continue to grapple with ongoing hurdles as they prepare for crucial festive sales seasons. GardaWorld Security, a leading safety advisor, commented on the severe impact of the shutdown on global trade.
Major shipping lines like Maersk, Hapag-Lloyd, and CMA CGM have revised their schedules to avoid Ningbo. BIMCO analyst Sander suggested that diverted cargo would flow, but it could take weeks to clear the backlog, considering the effects on both ship and land transportation.
The shutdown of the Yantian port, 50 miles north of Hong Kong, in June exacerbated the Ningbo chaos, as Covid-19 infections among dockworkers came to light.
Worldwide logistics chains have been thrown into disarray due to pandemic fallout, causing a scarcity of consumer goods and increasing shipping costs for businesses. Ningbo, a critical player in the industry, has contributed to a vast shift in trade volumes for close to a decade, handling nearly 1.2 billion metric tons in 2020 as per Chinese transportation ministry figures.
Designated as the world's third-largest container port with about 28.7 million TEUs (Twenty-Foot Equivalent Units) in 2020, Ningbo has been racing against growing residential pressure to find a balance between local inhabitants' safety and economic growth.
Jiang Yipeng, the Deputy General Director of Ningbo Zhoushan Port Group, underlined the need for a more nuanced approach to virus control, acknowledging that a zero-tolerance policy towards Delta-variant cases would be untenable for major ports.
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