China coronavirus infection closes shipping terminal at massive Ningbo-Zhoushan Port as container rates soar
- Operations suspended indefinitely at critical terminal servicing North America and Europe, but rest of Ningbo shipping port remains operational
- ‘Significant problems’ for container movement in critical shipping region may be seen ahead of peak holiday season, analyst warns
The world’s largest shipping port by cargo tonnage has shut down one of its key terminals following a confirmed case of Covid-19, putting further strain on the global shipping industry and disrupting supply chains.
The news came as container shipping rates from China and Southeast Asia to the east coast of the United States hit a record high of more than US$20,600 per 20-foot equivalent unit (TEU) – the standard measure for freight container volume – according to the Freightos Baltic global container freight index.
Port authorities quickly locked down the Meishan area – including the terminal and bonded warehouse – and suspended its operations indefinitely, according to a statement released by the local government in Ningbo, Zhejiang province.
However, the Ningbo-Zhoushan Port, which is also the world’s third-busiest port in terms of container traffic, remains open, and Meishan’s shipments can be redirected to other terminals, according to industry insiders.
The average wait time for ships at the Ningbo port was around one to three days, as of Thursday, according to Akhil Nair, vice-president of global carrier management and ocean strategy at Seko Logistics.