The closure of the Ningbo Beilun Phase III terminal is expected to have a major impact on key trans-Pacific trade routes from Asia and the entire supply chain, coming at the height of the peak season.
Container traffic at China’s port of Ningbo has been halted after an explosion aboard a ship carrying hazardous materials at one of the world’s busiest intermodal hubs.
The explosion aboard the Yang Ming vessel YM Mobility on Friday is believed to have involved organic peroxide materials. No injuries were reported in the explosion, but the terminal has been closed until further notice.
The shutdown couldn’t come at a worse time, with record peak volumes for North American imports forecast for August, following an “early peak” in June as carriers scrambled to get holiday goods in preparation for expected supply chain disruptions in the fall.
“This closure means that the Port of Ningbo is no longer operational, exacerbating existing supply chain disruptions, which were worsened by Typhoon Gaemi in July,” said Christian Roeloffs, co-founder and CEO of Container xChange, an online container marketplace based in Hamburg, Germany, in a customer advisory.
“For container trading companies and those involved in container leasing, this incident presents a number of clear challenges that are worth considering. The disruption at the port of Ningbo, combined with already existing congestion at major Asian ports, will lead to a deterioration of ocean schedules and further delays in container availability,” Roeloffs said. “Companies should brace themselves for longer waiting times, potential diversion of shipments and tighter availability of containers, particularly for hazardous and dangerous goods.”
Ningbo is the third busiest container port in the world, with a volume of 33.35 million twenty-foot equivalent units in 2023.
The exchange advised shippers to evaluate alternative routes via other ports, but expects more congestion at neighboring hubs. Shippers should also expect longer delays amid longer waits at major ports, and adjust inventory levels and delivery schedules accordingly.
The post Explosion at Chinese port paralyses trans-Pacific container trade first appeared on Freight waves.
