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Shipping disrupted by strict corona measures in China | Financial

The transport world is already saying that the problems are a bigger blow than the days-long blockade of the Suez Canal last March. It remains to be seen to what extent the Netherlands will also be affected by this.

Shenzhen

These are the ports near the important industrial center of Shenzhen, including Yantian. There is a contamination outbreak in the area. More than two weeks ago, this made local authorities decide to step up prevention and control, which has affected the amount of ships and containers the ports can handle ever since.

Vessels without certain reservations have already been denied access to ports and the amount of container bookings accepted is limited. Major shipping lines, such as Maersk, have also warned their customers about ship delays, schedule changes and the possibility that some ports will be bypassed on existing shipping routes.

Congestion

Danish analyst Lars Jensen of consultancy company Vespucci Maritime recently calculated that the congestion would affect some 25,500 containers a day, while the Ever Given in the Suez Canal blocked a total of 330,000 containers temporarily, according to him. Jensen’s argument has been taken up in various trade media, including Nieuwsblad Transport in the Netherlands.

According to René van Mil, who has been assisting Dutch entrepreneurs from Hong Kong for years with purchasing products in China, the prices for container transport from the Chinese ports have risen sharply. He emphasizes that transport costs were already very high due to the corona pandemic.

Container shipping has been experiencing disruptions for more than a year. This increase is on top of that. Van Mil fears that some Dutch companies will experience a lot of inconvenience from this.

No big price increases

Business association for logistics and trade evofenedex still finds it difficult to indicate what the consequences of the problems surrounding Yantian will be. Rogier Spoel, shipping and aviation policy advisor at evofenedex, does not think the situation will lead to major price increases on Dutch retail shelves.

According to him, many retail chains have concluded long-term contracts for the supply of containers from Asia. This means that they do not immediately have to deal with considerably higher transport costs. He also believes that most companies have already built up stocks and products are often purchased in a staggered manner, which prevents empty shelves in the event of logistical problems.

However, it is possible that certain items will be temporarily out of stock because the container in question is still on its way, says Spoel.

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Shipping disrupted by strict corona measures in China | Financial
Source link Shipping disrupted by strict corona measures in China | Financial

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