Yantian situation continues to worsen

Disruptions in and around the key southern China container port of Yantian continue to worsen following the partial closure of the port in response to an outbreak of Covid-19 among terminal staff, with carriers announcing significant disruptions to sailings and schedules and warning of delays for upwards of two weeks.

In an update yesterday on the latest Covid-19 related impacts to the Yantian, Shekou, and Nansha ports in China’s southern Pearl River Delta area, Maersk said the situation “continues to deteriorate as more positive Covid cases have been confirmed in Shenzhen – where Yantian port and Shekou port are located – and in Guangzhou, where Nansha port is located.”

Maersk said that “due to further measures being implemented, increased congestion and vessel delays upwards of 15 days are expected in Yantian port”, noting that “all operations in the western area of Yantian International Container Terminal (YICT) have been suspended until further notice. Origin export containers and transhipment containers have been detained there until further notice.”

Maersk said yard density at YICT “remains elevated, with disinfection and quarantine measures being continuously implemented by local authorities to prevent the spread of Covid-19. We expect continued terminal congestion and vessel delays upwards of 15 days in the coming week.”

Operations in YICT’s eastern area of the terminal – where mother vessels mainly berth – “continues to experience the low productivity which is about 30% of its normal level”, while all operations in the western area of YICT have been suspended until further notice.

Origin export containers and transhipment containers have been detained there until further notice.

And as of 7 June, export laden container gate-in continues to be accepted only three days prior to vessel ETA, and only after the terminal confirms the advance reservation made by trucking companies for laden containers gate-in, Maersk highlighted. Import laden container pick-up, which is mainly concentrated in the eastern area of the port, maintains normal operations.

Meanwhile, for Shekou port – including Chiwan Container Terminal, Mawan Container Terminal and Shekou Container Terminal updates – export laden container gate-in will be accepted only three days prior to vessel ETA, while at Nansha port, export laden container gate-in will be accepted only 7 days prior to vessel ETA.

Maersk said that due to these disruptions, several vessels will be omitting the Port of Yantian and Shekou “in order to protect schedule reliability”.

As reported today in Lloyd’s Loading List, these disruptions in southern China threaten to ripple around the world.

Drewry ports and terminals analyst Eleanor Hadland commented: “We’re seeing this contagion spread around the world and there is just a lack of resilience. There is no spare capacity in North America or China at the moment to handle this level of disruption.”