Disruption to Yantian International Container Terminal Operations in South China

Routing alternatives following Disruption to Yantian International Container Terminal in South China

The port terminal operation in Pearl River region, South China, has deteriorated significantly. Ever since the Suez Canal incident, logistics providers have experienced decreasing schedule reliability on long haul vessels, and this has led to the increase in port congestion in major sea ports including those in the Shenzhen port area. In addition, this has been compounded by recent outbreaks of COVID-19 cases in Yantian International Container Terminal (YICT) and surrounding areas during the latter part of May, creating a bottleneck on both landside transportation and terminal operations.

Key Facts:

• Congestion and vessel delays up to 15 days are expected in Yantian port.
• All operations in the western area of YICT have been suspended until further notice, and productivity is down to 30% of normal operation levels.
• As of 10 June, more than 50+ vessels are waiting to berth into the dock outside Shenzhen port area.
• Backlogs of more than 20,000 containers are now in Shenzhen, as reported by media.

To combat the turbulent situation, and to avoid further delays before berthing, ocean carriers are rerouting via Shekou, Da Chan Bay and Nansha ports in the hope of releasing the mounting pressure. Unfortunately, with another COVID-19 outbreak in Guangzhou district, where Nansha port is located, the situation continues to be very difficult due to the roll-out of the quarantine policies. Neither the repositioning of empty equipment nor the return of laden ones can be executed because of the ongoing restrictions to personnel/vehicle movement.