Covid Outbreak Partially Closes Southern China Ports

Covid Outbreak Partially Closes Southern China Ports

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: 
    1. A3S Service – Ex Shekou
    2. CAT Service – Ex Shekou
    3. NEAX Service – Ex Yantian
    4. YOYO Service – Ex Yantian
    5. 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;

Equipment Imbalance

  • 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

Rate Increases

  • 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.

 

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