Sunday, January 29, 2023
spot_img
HomeHeadlinesChinese ports choke over ‘zero tolerance’ COVID-19 policy

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Chinese ports choke over ‘zero tolerance’ COVID-19 policy

Several Chinese ports are facing congestion as vessels due to call at Ningbo are bing diverted and cargo processing is slowed partly due to stricter disinfection measures under China’s “zero-tolerance” coronavirus policy.

On Tuesday, more than 50 container vessels were queuing at Ningbo port, China’s second largest marine centre, Refinitiv data showed, up from 28 on Aug. 10 when a COVID-19 case was reported at one of its terminals.

Leading international shipping groups have warned their clients of delays and route adjustments. At least 14 vessels operated by CMA CGM, five Maersk vessels and four Hapag-Lloyd ships have decided to skip Ningbo, while dozens of vessels are adjusting their schedules, the shipping groups said.

China’s economy is losing momentum as a result of new coronavirus restrictions and global supply chains face further strains with the curbs adding to queues at major Chinese transportation hubs, already stretched by a resurgence of consumer spending, shortage of container ships and logjams at ports.

China’s Ministry of Transportation has ordered all ports to have special teams to deal with foreign vessels and required their crews to have health certificates or negative tests before allowing them to load and discharge cargos.

Ports also have their own rules, with some applying additional precautions to vessels that stopped at ports in high-risk regions, such as India, Laos or Russia, in the past 21 days.

“China’s zero tolerance policy is good for the pandemic but bad for the supply chain,” said Dawn Tiura, chief executive officer of Sourcing Industry Group, a U.S.-based association for the sourcing and procurement industry. “This timing is very tough considering the uptick in back-to-school and return-to-work shopping in addition to the upcoming holiday shopping season.”

Ningbo Zhoushan Port Co said in a statement late on Monday its handling volume has resumed to about 90% of its average daily level in July, following efforts to mitigate the impact of the shutdown of a terminal, which accounts for about 20% of Ningbo’s container handling capacity, after a COVID-19 case was detected there last week.

Vessels scheduled to call at the terminal are being re-routed to nearby ports. Shanghai port had 34 vessels waiting at anchorage, compared to 27 on Aug. 10, while the number of vessels waiting at Xiamen port – 700 km south of Ningbo – rose to 18 on Tuesday from four early last week.

“Cargoes have been piling up at port recently due to tight labour force from portside and relevant departments, while increasing shipments also weighed,” said a bulk ship operator at China’s eastern port city Lianyungang.

“China is an important component of the global supply chain … Any shutdowns or delays from China have the potential to delay finished goods two or three tiers out,” said Richard Lebovitz, chief executive officer of LeanDNA, a U.S-based supply chain consultancy.

The Freightos Baltic Global Container Index (FBX), a weighted average of 12 major global container routes, hit a record high of 9,770 per forty-foot equivalent (FEU) container this week.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Maritime UK: Net Zero Review published

On 13 January, the Department for Business, Energy and Industrial Strategy (BEIS) published the...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...