Posted on 08/17/2021 7:41:05 PM PDT by blam
Massive port backlogs continued to build for the seventh day in China at the world’s third-busiest container port. Vessels are being diverted away from Ningbo Meishan Container Terminal due to suspended operations following the COVID-19 Delta variant outbreak. This is having a profound impact on nearby ports in Shanghai and Hong Kong, according to Bloomberg.
Port congestion in nearby Shanghai and Hong Kong is increasing once again due to the closure of the Meishan terminal at Ningbo port, a major port and industrial hub in east China’s Zhejiang province, which lies south of Shanghai. Last week, a dock worker at the port became infected with the virus and forced the Meishan terminal closure.
At least a quarter of the port’s capacity has been brought offline, forcing some of the world’s biggest shipping lines to divert vessels to other surrounding ports.
Simon Heaney, senior manager of container research at Drewry Shipping Consultants Ltd., said Moller-Maersk A/S and CMA CGM SA, the world’s largest shipping line, is skipping Ningbo port after the closure has stretched into the seventh day.
The average count of container ships anchored off Xiamen, a port city on China’s southeast coast, across a strait from Taiwan, was 24 on Tuesday, up from 6 at the beginning of the month. Ships anchored off Shanghai and Ningbo ports were more than 141, 60 more than the average from April to August.
Ningbo is the third-largest container port globally after Shanghai and Singapore, but the busiest container port in the world by volume.
The consequences of limiting capacity at Ningbo are already apparent and are rippling through surrounding ports, causing massive congestion.
The week closure of the terminal results in cargo diversion to other ports, putting a strain on their operations and exacerbating capacity challenges that have led to record shipping rates ten times greater than normal for specific routes.
Michael Every, Head of Asia-Pacific Financial Markets Research at Rabobank, recently said Delta leads to further disruption to shipping at China’s busiest ports. The virus is impacting even Vietnamese and Thai production. In short, shipping snarls are going to get worse. Anecdotes are of shippers telling clients they will not deliver except at a premium; of smaller firms, and countries, being pushed down the priority list; of ships refusing to pick up goods exports from some locations; and of a structural supply-demand mismatch of sought-after shipping containers.
“Most ports are already experiencing congestion or delays, so any additional and uncatered for volumes will heap on more pressure,” said Drewry’s Heaney.
We’ve discussed the latest meltdown down of the trans-pacific supply chains in “Supply-Chains Brace For Collapse: Port Of LA Fears Repeat Of “Shipping Nightmare” As China Locks Down” and “Shippers Frantic After China’s Busiest Port Shuts Container Terminal Due To Covid.”
Goldman Sachs has explicitly warned that “port closures or stricter control measures at ports could also put further upward pressure on shipping costs, which are already very high.”
Increasing port congestions in China is bad news for US importers who may experience longer shipping times and incur higher shipping costs on products that will be passed onto consumers. There’s also the risk of product shortages developing.
Vessel Congestion At LA Ports Soars As More Ships Join Queue
At least we are self sufficient in petro energy...
WHAT??? No Way....
Simple solution. Make everything here in the USA and then no ships or ports will be needed.
I buy American. A little more expensive but it supports my fellow Americans and I don’t get dependent on China.
“how will I get my blowup love doll?”
~Mittens Romney
What???
Are you some type of Trumpster?
We should have an effective import tariff like THE REST OF THE WORLD.
America First Trumplican.
Most of those stricken with the virus get better. China is laughing at us.
I recall reading some months ago that Chinese ports were clogged with containers on the ground and rotting food. Tying containers up for some excuse China offered without admitting to covid deaths.
Did they ever clear that out? Or is the new congestion on top of the old?
BTTT!
And they claim in the article that this conversation and possible global shipping event was caused by 1 dick worker testing positive.
Yeah right! I’ll bet nobody is well enough to work in that area of the country.
Go on, tell us how you *really* feel.
Oops. Freudian slip.
Ah so solly, you uh ebay box no come yet. So solly!!
Let’s get this cleared before the ChiComs figure out that empty cargo ships might have military uses.
OMG!!! Panic! My local watering hole is running low on umbrella swizzle sticks! For the love of all humanity, can we not get a fine, young, Harvard-educated entrepreneur to get a start-up going for making totally useless things here in the US instead of buying useless things from China?
Massive port backlogs continued to build for the seventh day in China at the world’s third-busiest container port.
Vessels are being diverted away from Ningbo Meishan Container Terminal due to suspended operations following the COVID-19 Delta variant outbreak.
This is having a profound impact on nearby ports in Shanghai and Hong Kong, according to Bloomberg.
(The Delta virus).. leads to further disruption to shipping at China’s busiest ports. The virus is impacting even Vietnamese and Thai production.
In short, shipping snarls are going to get worse.
Anecdotes are of shippers telling clients they will not deliver except at a premium; of smaller firms, and countries, being pushed down the priority list;
of ships refusing to pick up goods exports from some locations; and of a structural supply-demand mismatch of sought-after shipping containers.
We’ve (at news source) discussed the latest meltdown down of the trans-pacific supply chains in “Supply-Chains Brace For Collapse: Port Of LA Fears Repeat Of “Shipping Nightmare” As China Locks Down” and
“Shippers Frantic After China’s Busiest Port Shuts Container Terminal Due To Covid.”
(MY Comment): There is little we can do here to affect the supply chain breakdown except to get essential products and needed personal medications that are already here.
We can do nothing constructive to alleviate the situation brought on by the covid infection except to prepare ourselves and our families.
This will also affect domestic production and manufacturing, as well as international trade; you can't sell a finished product
if it is missing some parts that are on "back order".
Define and plan,in sequential order :" what is needed", vs, "what is wanted", vs, "what we'd like to have", vs, "what is supplemental and non-essential".
Then buy and store-up accordingly !
Prepper Motto: "Prepare for the worst,.. and pray for the best (outcome)".
H/T to blam ! for keeping us advised to supply chain information in this globalist economy.
Plan accordingly !
Or , this could be an attempt by the Chinese to crash the world-wide international economy,
and thus China comes out on top, after they restore shipping, with covid as an excuse.
Sun-Tzu, an ancient Chinese tactician said that the best war is when your opponent doesn't realize he is under attack, and where there is no physical violence.
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