For over two weeks, International Container Terminal (YICT) in Yantian, China has been experiencing severe delays, citing that the impact of both carrier vessel schedules and reported COVID outbreaks, are leading to a supply chain disruption greater than the Suez Canal grounding back in March of this year. Issues have now spread to the surrounding ports of Shekou and Nansha, with more cargo beginning to be diverted through Xiamen port.
YANTIAN
Since May 21, YICT shut down its west terminal following a COVID-19 outbreak causing the remaining east terminal productivity to drop drastically to 30 percent. Since then, ocean carriers have cancelled almost all of their vessel calls to the port through the first week of July.
Countless containers sit waiting at the port, surrounding roads and suburbs to be exported, but this cargo is expected to see up to 14-day delays, or more before the backlog is cleared. The congestion is also negatively impacting equipment supply as inbound vessels bypass Yantian for other terminals.
SHEKOU & NANSHA
The nearby ports of Shekou and Nansha are also experiencing congestion due to pandemic safety protocols and the additional volume being diverted from Yantian. For cargo exporting from Shekou port in Shenzhen, export container are being accepted only 3-days prior to vessel ETA. For shipments transiting through the Nansha port in Guangzhou, 9-hour delays can be expected for both gate-in and empty container pick-up. Drayage trucking is becoming more difficult as complexity for the backlog increases.
MALAYSIA
In addition to the closures in South China, Malaysia is currently under full lockdown until June 14, 2021. Many factories have been closed, resulting in rolling requests and booking cancellations from shippers. The increase in COVID outbreaks at origin ports has resulted in vessel diversions/blank sailings/equipment shortage and even greater demand.
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