The epidemic has not been completely eliminated, and various industries are still facing the threat of sudden suspension of work. Now that international trade demand is booming, the shipping industry, which is hard to find, is even more afraid of suspension. Last month, Shenzhen Yantian port workers were diagnosed and the port was forced to close for three weeks. After restarting for a month, there is still a large backlog of home appliances, commodities and toys waiting for export. Now manufacturers hope to find other ports in China to ship them, and predict that consumers will obviously feel the effect of price increases in a few months.

The South China Morning Post reported that a bicycle assembly factory in Shenzhen that exported bicycles to the east coast of the United States stated that due to the shutdown of Yantian Port, even if exports are resumed, the backlog of goods is too large to digest, and the warehouse is now full I can’t fit any bicycles.

The impact of the Yantian Port shutdown incident has been considered to be more serious than the long-term ship stranding on the Suez Canal. Shenzhen Yantian Port is located in the Pearl River Delta and is China’s largest single port, accounting for one-tenth of China’s foreign trade container throughput. It was closed in early June due to the outbreak of the new crown virus (COVID-19) by dock workers. No digestion.

At present, some manufacturers are now trying to transfer goods to other ports in the Pearl River Delta, including Shekou and Nansha, which has caused congestion and price increases in these ports. Other manufacturers even go further north, including Ningbo Port near Shanghai. The Ningbo Container Freight Index (NCFI) reflects the fluctuation of international container freight rates from Ningbo Port. As of July 16, the price increased by 77% compared with the mid-May before the Yantian suspension. Land transportation prices have also soared.

The report pointed out that it is difficult to find too many alternative solutions in the market at present, because the backlog of goods is too large, which will inevitably affect the retail supply chain for several weeks or even months, and market analysis will affect at least early to mid-August. Some analysts said that Christmas shipments may be affected by a large backlog.