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Shenzhen Yantian closes port, global freight is half paralyzed

2021-06-21

The new crown epidemic broke out in southern mainland China. Guangdong Province ordered the city to be closed, flights cancelled, and coastal trade suspended. Although the epidemic has been slightly controlled and some operations have been restarted, damage has already occurred. For example, Yantian, an important container port in Shenzhen, was closed at the end of May for nearly a week. Not only does it cause cargo congestion in Shekou, Chiwan, Nansha and other ports, the ripple effect has also spread to global freight, and shipping prices have soared, and consumers have to pay higher shopping costs for this. Experts predict that the consequences may be more serious than the Suez Canal obstruction by the "Long Give" in March.

Furthermore, the Long Grant is still detained in the area due to disagreement with the Suez Canal Authority (SCA) for compensation. The ship’s cargo has a total of US$1 billion (approximately NT$28 billion). The owner became the biggest sufferer of this accident.

Mainland media reports pointed out that the port of Yantian recently stated that the overall operating capacity of Yantian International has returned to about 70% of the normal period, but the full recovery still needs to wait until the end of June. Reuters reported that Yantian Port had the worst cargo ship jam since 2019. The Maersk Group, the world’s largest container shipper, said last week that due to the blockage of Yantian Port, the delivery time will be delayed by at least 16 days. Although some freighters are redirected to other destination ports, the problem will not necessarily be resolved.