General

Regarding the epidemic situation in Ningbo Zhoushan Port, according to the latest news, except for Meishan Wharf, operations are currently suspended, and terminal operations and loading and lifting of containers in other port areas are all operating normally.

The arrangements for the next operation of Meishan Wharf are determined in accordance with the government's epidemic prevention and control. In addition, the route business of Meishan Wharf is formulating route adjustment and temporary handling plans, which will be announced as soon as possible.

Ningbo Meishan Wharf is part of Ningbo Meishan Free Trade Zone, with an annual throughput of 7 million TEUs. Meishan Wharf is one of the newest and largest terminals in Ningbo, and it usually serves COSCO, CMA CGM and Evergreen, members of the Ocean Alliance. The throughput of Ningbo Zhoushan Port last year was 28.72 million TEUs, making it the third busiest container port in the world.

The freight forwarder and shipping company make a preliminary response

At present, due to the suspension of all inbound and pick-up services at Meishan Wharf, freight forwarder Normal Global Logistics (NGL) stated: “Operators cannot pick up empty containers or transport inbound containers to the terminal. The relevant carriers and ports re-arrange the cargo to other terminals in Ningbo. More information on the practices and which freight and flights may be affected has yet to be announced. Most shipping companies use this terminal, but some call at other terminals in Ningbo."

NGL pointed out that many ships on Asia-Europe routes will call at Meishan Wharf, including CMA CGM’s FAL3 and FAL5/FAL6 and COSCO’s AEU3 and AEU1 service routes.

A Maersk spokesperson said that as its ships are docked at the docks in Ningbo Beilun port area instead of Meishan docks, it has not been affected so far. "However, due to the closure of the Ningbo Meishan Free Trade Port Zone, the three Maersk warehouses in the area have ceased operations as required," the spokesperson added.

NGL General Manager Stefan Holmqvist said: "If the port is closed for a long time, then there will be a chain reaction, because other terminals in Ningbo cannot fully absorb the volume of goods brought by the long closure of Meishan Terminal. This is similar to the situation at Shenzhen Yantian Port at that time— —Other terminals have tried their best to make up for it, but they cannot bear all the lost capacity."

Logistics "Domino" event

In fact, due to the impact of the typhoon "fireworks" last month, Shanghai and Ningbo ports have been heavily congested. The increase in the detection of new crown virus for port workers and the restrictions on crew replacement may cause delays. According to reports, there are currently about 140 container ships waiting at the outer anchorages of the two ports.

The shipping company Hamburg South America recently released the latest news on the Asian shipping market that the restrictions on the epidemic have severely delayed shipments from Asia to Northern Europe. The ship was delayed for 7 days, and the corresponding truck and rail service connections became slower. The shipping company added that “the return of ships to Asia has slowed down, delaying imports, as well as the rotation of future flights and the supply of empty containers.”

Akhil Nair, Vice President of Global Carrier Management and Maritime Strategy of Seko Logistics, said that this is the latest in a series of "logistics domino" collapses. He said: "If Ningbo Port or one of the six terminals is indeed closed or affected The impact of reduced productivity will have a long-term impact similar to that of Yantian Port. Carriers will need to decide whether they will jump to the port to maintain the reliability of the current schedule or fall into the inevitable queuing and congestion. "

The impact of the epidemic may be reduced

According to a report from China Broadcasting Corporation, since August 6, Ningbo Meidong Container Terminal has transferred 186 front-line operators to implement closed-loop management. Dockers are cross-infected, and the risk of the epidemic being exported.

If the positive case in the Meishan Port District of Ningbo Zhoushan is indeed a dedicated staff member, the other five ports will not be directly impacted because they are far apart; due to the particularity of the two-point and one-line closed management, the frequency of cross-infection will be reduced and closely connected. Personnel can also effectively control, or reduce the impact of this epidemic to a low level. At the same time, if Ningbo Zhoushan Port can quickly deploy routes from Meishan Port Area to other port areas at this time, the direct impact on operations can also be reduced.

The epidemic, severe weather, and strong demand in Europe and the United States have jointly caused severe damage to the global supply chain. At present, the supply chain is under high pressure. Any incidents such as port congestion, terminal shutdown, and truck trailer interruption caused by any cause will impact and challenge the container shipping market. It is hoped that this nucleic acid-positive patient is only a single case, and that the epidemic situation at Meishan Wharf will be quickly controlled and production will resume as soon as possible.

Tips: The epidemic at Meishan Wharf of Ningbo Zhoushan Port may cause some delays in port terminal operations. Remind forwarder companies to pay attention to progress and changes and arrange for cargo to be shipped from neighboring ports as soon as possible!