TRADE WARS
China port backlog will take weeks to clear, Maersk says
By Beiyi SEOW
Beijing (AFP) June 21, 2021

A backlog at China's largest container terminal caused by a Covid-19 outbreak among port workers will take several weeks to clear, the world's biggest shipping firm said Monday.

Yantian port, in China's southern trade hub Shenzhen, stopped accepting new export containers in May after a local infection cluster involving port workers -- stifling trade at a key point of the stressed global shipping network.

Port authorities, who stopped processing the new containers for six days, have said operations will be back to normal by the end of June.

Maersk -- which operates in 130 countries and employs about 80,000 people -- told AFP it would take a "few weeks" for the backlog to clear at the port, the world's third-largest terminal.

It comes a week after the firm warned Yantian was "the most prominent bottleneck right now".

"The Yantian Port Authorities have announced that productivity will be gradually increased as more workers return to work and more berths reopen," Maersk said Monday.

Based on this, it added, the "backlog will be gradually cleared in the next few weeks".

The shipping industry has faced huge challenges since the start of the coronavirus pandemic, including a combination of jammed networks and surging demand.

Yantian's halt on processing containers exacerbated challenges which left shipping giants, manufacturers and logistics firms reeling.

"It was already hard to find containers before, and the situation is even scarier now," said Alfred Wong, CEO of D&S Products Manufactory, which produces goods in Shenzhen.

It is now "hard to predict" the wait for container space, he said, adding that delays in shipments had made it difficult for manufacturers to keep pushing out products.

Wong added that it had become three to four times more expensive to ship to the United States.

Maersk warned Monday there had also been a "ripple effect (that) has led to port congestion in nearby ports".

A staff member of logistics company JCtrans, surnamed Mao, told AFP some companies had tried to use ports in other regions, but that impacted on costs.

"Factories and businesses have pushed back their delivery dates, many to the following month," said a staff member of another logistics firm, who wished to remain unidentified.

"We've had no profits at all."

The Yantian port processed the equivalent of 13.3 million 20-foot units for foreign trade in 2020, Nomura analysts said, more than 10 percent of China's foreign trade container throughput.

But Nomura expected export losses from the port disruption to be temporary, given China's record of containing Covid-19 outbreaks, adding "most of the near-term export losses will be recouped later".

bys/rox/leg

A.P. MOELLER-MAERSK

NOMURA HOLDINGS


Related Links
Global Trade News

TRADE WARS
Australia takes China to WTO over wine duties
Sydney (AFP) June 19, 2021
Australia will take China before the World Trade Organization over Beijing's imposition of crippling tariffs on Australian wine exports, it announced Saturday, in the latest sign of worsening tensions between the two countries. The decision "to defend Australia's winemakers" comes six months after Australia lodged a separate protest at the WTO over tariffs on Australian barley and is in line with the government's "support for the rules-based trading system", it said in a statement. It added, how ... read more

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Pentagon announces missile defense review

USS Paul Ignatius fires Standard Missile-3 interceptors in test

MDA test does not intercept target

First modernized SBIRS Missile Warning Satellite under Space Force control

TRADE WARS
Legislators object to Navy plan to end nuclear cruise missile program

Defense Dept.: U.S. accelerating hypersonic missile development

USS Ross conducts live-fire missile test in NATO exercises

Surveillance planes test Harpoon missiles in NATO exercise

TRADE WARS
Army training to disable intelligence-gathering drones from vehicles

Three 'explosive-laden drones' used in Baghdad airport attack: army

THOR hammers drones in new video animation

AFWERX Agility Prime partners with Kitty Hawk in first medical evacuation exercise

TRADE WARS
Filtering out interference for next-generation wideband arrays

ESA helps Europe boost secure connectivity

Isotropic Systems and SES GS complete trials for of new connectivity for US Military

Quantum communication in space moves ahead

TRADE WARS
Developing morphogenic electrochemical interfaces

GAO urges DOD to update weapon programs cost oversight

Oshkosh Defense wins potential $942.9M contract for Stryker armaments

Marine Corps ends involvement in tank warfare

TRADE WARS
Fall in French arms sales blamed on pandemic

Israel says military exports hit $8.3 bn in 2020

Austin, Milley say $715B defense budget is ample for DoD's needs

GAO report: Lack of data causing delays in military spare parts contracts

TRADE WARS
NATO's massive Baltic Sea maritime exercise concludes

'Verbal ceasefire' between France, Turkey: Paris

Biden sees pushback on China but ready to see Xi: aide

Draghi distances Italy from Russia, China to return to West's fold

TRADE WARS
Nano-Bio Materials Consortium introduces new AFRL-Industry Co-Development Program

Nanostructured device stops light in its tracks