The closure of Ningbo Beilun’s Phase III Terminal due to an explosion involving hazardous materials is expected to have far-reaching consequences on the main trans-Pacific trade routes from Asia and the overall supply chain. This incident comes during the peak shipping season.
The explosion occurred on the Yang Ming vessel YM Mobility on Friday. It reportedly involved organic peroxide materials. Fortunately, there were no injuries. Nevertheless, the terminal has been closed indefinitely.
Ningbo has been ranked the third-largest container port globally. And handled 33.35 million twenty-foot equivalent units in the year 2023.
The shutdown of Ningbo Port comes at a challenging time. Record levels of North American imports are expected in August. This follows an early peak in June, as shippers aimed to get holiday goods before potential supply chain issues in the fall.
Christian Roeloffs, the CEO of Container xChange, noted that Ningbo Port is now closed. This adds to existing supply chain problems worsened by Typhoon Gaemi in July. He explained that the closure would create straightforward challenges for container trading and leasing companies. The disruption at Ningbo, along with congestion at other major Asian ports, will worsen ocean schedules and lead to more delays in container availability.
Companies should prepare for longer wait times, possible rerouting of shipments, and a shortage of containers, especially for hazardous materials.
Container xChange recommends that shippers look for alternative routes through other ports. However, they should expect more congestion at nearby hubs. Shippers must plan for longer delays and adjust their inventory and delivery schedules accordingly.
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