News Briefs
The full reopening of the major port in Yantian, China, on June 24 comes as cold comfort for the global supply chain, with some predicting the aftereffects could last into next year.
New data released on July 5 by the Kiel Trade Indicator, which analyzes the flow of trade among 75 countries, reported: “almost five percent of all container ship capacities” are at this time “tied up by traffic jams” at Yantian. This was “more than in the first wave [of the Covid-19 pandemic],” it was further noted.
With an open port, you now need to deal with the full force of the normal cargo flow, and then the backlog on top of it. In this respect, I expect full normalization to take a couple of months.- Lars Jensen, CEO, Vespucci Maritime
The disruption at Yantian International Container Terminal, the world’s fourth-largest container port, started with a partial closure in late May. This came about when five workers in the port tested positive for Covid-19 during an outbreak in the province.
Due to the scope of the outbreak in Guangdong province and its vulnerability as a major entry point for visitors and cargo, the port only fully re-opened a month later.
See Also:Trade News“With an open port, you now need to deal with the full force of the normal cargo flow, and then the backlog on top of it,” said Lars Jensen, the CEO of the Danish-based shipping company Vespucci Maritime. “In this respect, I expect full normalization to take a couple of months.”
“There is also a capacity shortage on vessels out of Asia,” Jensen added. “This means that taking extra cargo to handle the backlog from Yantian will lead to a reduction of available capacity out of other ports in Asia — and hence the problem will be felt across the market in the coming weeks. Realistically the impact could be felt well into 2022.”
Just two weeks into the port closure, Jensen noted that the closure disrupted more containers than those affected by the Suez Canal blockage in late March.
At the time, Jensen explained during the first 14 days of the Yantian disruption, the port was unable to handle 357,000 20-foot equivalent units (TEU).
On the other hand, the Suez Canal blockage would have disrupted 330,000 TEU if it had continued for the same period. Moreover, the Yantian closure lasted two weeks longer than the Suez Canal blockage.
When he released these figures, Jensen said sharing these ballpark figures demonstrate shippers should not dismiss the extent of the expected ripple effects.
Weighing in on the matter, senior manager of container research at London-based Drewry Shipping Consultants Simon Heany said “the situation at Yantian has exacerbated existing global supply chain disruption, causing more bottlenecks in neighboring ports and terminals.”
“This has delayed the much-needed improvement in port productivity required to handle the surge in container traffic seen from the second half of 2020,” he added.
More articles on: China, Covid-19, import/export
Sep. 20, 2023
Award-Winning Importer Recounts America's Evolving Olive Oil Culture
MillPress Imports co-founder Tim Balshi says quality is key in the competitive U.S. olive oil import market.
Sep. 14, 2023
Syria Restricts Olive Oil Exports as Harvest Outlook Worsens
Olive oil production in Syria is expected to fall by 50 percent in the 2023/24 crop year. Authorities have banned exports to prevent price rises.
Aug. 14, 2023
Tunisia Has a Plan to Boost Its Olive Oil Industry
The strategy aims to increase annual production of extra virgin olive oil while growing packaged exports and domestic consumption.
Jun. 26, 2024
Rising Olive Oil Imports Contribute to Spain’s Trade Deficit with Argentina
While Spain’s agricultural trade deficit fell by 33 percent between 2022 and 2023, olive oil imports increased by nearly 230 percent due to a poor harvest and rising prices.
May. 28, 2024
Spanish Olive Oil Sector Works to Develop Exports to China
As high prices change consumption habits in Europe, Spanish producers and exporters seek to promote olive oil consumption in the world’s second-largest economy.
Aug. 2, 2023
Leading Tunisian Bulk Olive Oil Exporter Pivots to Adding Value
The exporter seeks to expand shipments across Asia, while investing in sustainable farming to promote soil water retention capabilities at home.
Aug. 7, 2023
Italy Becomes Largest Market for Tunisia’s Organic Olive Oil Exports
Tunisia's organic production is increasingly favored by large Italian bottlers.
Apr. 11, 2024
Turkish Producers Pray Export Ban Ends with Ramadan
While the prohibition on bulk exports has helped control domestic prices, producers worry it has hurt their credibility with international partners.