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Congestion at south China ports worsens on anti-COVID-19 measures

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BEIJING: Congestion at container delivery ports in southern China is worsening as authorities step up disinfection measures amid a flare-up in COVID-19 circumstances, inflicting the largest backlog since no less than 2019.

Greater than 150 coronavirus circumstances have been reported in Guangdong province, a key manufacturing and exporting hub in southern China, because the newest wave of circumstances struck in late Could, triggering native governments to step up prevention and management efforts which have curbed port processing capability.

Ports in Guangdong, together with Yantian, Shekou, Chiwan and Nansha, have issued notices this week suspending vessels from coming into ports with out advance reservations, and can solely settle for bookings for export-bound containers inside three to seven days previous to the arrival of vessels.

Main delivery firms have warned shoppers of vessel delays, adjustments to port name schedules, and the opportunity of skipping some ports altogether.

READ: China’s Guangzhou city imposes more COVID-19 measures

Ocean Community Specific (ONE) mentioned in a discover on Wednesday (Jun 9) that Yantian Worldwide Container Terminal continues to function beneath capability due to coronavirus-related work restrictions whereas congestion at container terminals at Shekou and Chiwan has surged to greater than 90 per cent of capability.

The world’s main container line Maersk on Thursday elevated the length of anticipated delays at Yantian to 16 days from 14 days beforehand.

As of Friday, greater than 50 container vessels are ready to dock within the Outer Pearl River Delta, the place the ports are situated, based on Refinitiv knowledge.

That compares to round 20 vessels in the identical interval final 12 months and greater than in February 2020 when ports have been paralysed due to China’s preliminary COVID-19 outbreak.

Exporters mentioned the impression has been restricted to this point, as loading delays and gradual deliveries have hampered logistics chains because the begin of the COVID-19 pandemic.

“Mainly we had the same expertise final 12 months so we now have expertise in responding, solely the rise in transport prices are getting actually astonishing. The freight charges are mirrored within the enhance in materials prices that are up by round 15 per cent to 30 per cent already,” mentioned a gross sales supervisor at an electronics cable producer in Shenzhen, a big manufacturing metropolis in Guangdong close to Hong Kong.

The gross sales supervisor’s firm needed to pay additional charges to ship merchandise to ports close to Shanghai to satisfy a shopper deadline.

Container freight charges from China to Europe rose to a file of US$11,037 per 40ft container this week, attributable to provide chain bottlenecks from a surge in shopper items demand and a few knock-on results from when a container ship blocked the Suez Canal in March.

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