Covid Outbreak Partially Closes Southern China Ports
What do you need to know?
Shenzhen has two ports (Yantian & Shekou) to service Australia and are used as a gateway for all Southern China exports.
- Yantian Port:
- Has been identified as a Covid cluster area last week.
- Between 25th May to 30th May they were not accepting any export full load containers however pick up import full load and empty for export are operating as normal.
- Fumigation area within Yantian terminal is currently closed, containers need to be fumigated at other terminals.
- Serious congestion has occurred at Yantian Terminal, with truck queues going for kilometres.
- Shekou Port:
- From 1st June they will start limiting the acceptance to export full load containers for the vessels within 5 days prior vessel ETA.
How will this affect your business?
- Shenzhen Ports handle a 25,770,000 TEU
- There are five (5) weekly services from Shenzhen to East Coast Australia (Sydney, Melbourne, Brisbane) those services are:
- A3S Service – Ex Shekou
- CAT Service – Ex Shekou
- NEAX Service – Ex Yantian
- YOYO Service – Ex Yantian
- CAX Service – Ex Yantian
Potential for Delays
- Reduced capacity for fumigation may result in suppliers unable to meet vessel schedules;
- Reduced production due to congestion at the factory as they are unable to export goods;
- Vessels omit Yantian due to congestion at terminal creating shipping delays;
- Empty Equipment not being returned to Shenzhen and Southern China as a result of Yantian congestion;
- Congestion caused by Yantian Terminal closure may result in reduced berthing windows limiting container exchanges reducing the number of empty containers making their way back to Shenzhen;
- The world largest shipping lines Maersk who also owns Hamburg SUD has reported a serious shortage of 40HQ equipment in Shenzhen;
- All shipping lines are reporting shortage of 40HC’s to different degrees
- Shipping Lines have already started increasing rates as a result of the equipment imbalance and reduction of services from Shenzhen;
- Available capacity from Shenzhen to East Coast Australia may drop by 60% in the short term meaning we are only operating on 40% capacity.