YANTIAN, China – Coronavirus outbreaks in recent weeks among dockworkers in the Pearl River Delta are exacerbating delays in processing containers, adding to an already stressed global ocean-shipping infrastructure.
According to a South China Post report, the situation has created disruption worse than the blockage of the Suez Canal in March.
Yantian International Container Terminal, China’s largest single port and accounting for 10.5% of the country’s foreign trade container traffic, is the worst hit. The seven-day average for median container dwell times in Yantian doubled in the past two weeks to a shade over 23 days as of June 15.
Operations are expected to return to normal later this month. The port currently is operating at around 70% capacity, but processing the container backlog there will take weeks even after normal productivity resumes.
Maersk, the worlds largest ocean shipper, said in an update that while Yantian is reopening with a positive impact on gate activity, “schedule reliability will continue to suffer with an average waiting time of 16 days and counting.”
Maersk said it is working to mitigate impact by shifting traffic to other locations. While the current average waiting time in Shekou, Nansha and Hongkong ports is two to four days, those numbers should rise as more carriers omit calling at Yantian for some shipments.
“We also want to advise that shipments not directly impacted by the Yantian situation might also be affected as we adjust our network to avoid port congestions and to limit the overall net loss of ocean network capacity due to omitting the Port of Yantian,” Maersk said.
Due to the impact of vessel delays and service omissions in Yantian and Shekou, Maersk advised customers to amend their plans in order to use 20-foot containers in those locations.
I'm Powell Slaughter, senior editor at Furniture/Today. I returned to the publication in January 2015 after nine years of writing about furniture retail strategies and best practices at a monthly magazine focusing on home furnishings retail operations. Prior to that, I spent 10 years with F/T covering wood furniture, the last five of those as case goods editor. Upon my return to F/T, I developed coverage of the logistical and service aspects of the furniture industry as well as following the occasional, home office and home entertainment categories. In April 2018 I took over the upholstery category, with responsibility for coverage of the fabric and leather stationary and motion upholstery, recliners and massage chair categories.
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