The closure of the Ningbo Beilun Phase III Terminal is expected to have cascading effects on key trans-Pacific trade routes out of Asia, and the overall supply chain, in the midst of peak shipping season.
Container traffic has been halted at China’s Ningbo port following an onboard explosion involving hazardous materials at one of the world’s busiest intermodal hubs.
The explosion aboard the ship Yang Ming YM Mobility on Friday involved organic peroxide materials. There were no injuries in the explosion, but the terminal was closed until further notice.
The closure could not come at a worse time, as record peak volumes for North American imports are expected in August after an “early peak” in June as shippers rushed to get holiday goods ahead of expected disruptions in supply chain in autumn.
“With this closure, Ningbo Port is no longer operational, compounding existing supply chain disruptions exacerbated by Typhoon Gaemi in July,” said Christian Roeloffs, co-founder and chief executive of Container xChange, an online marketplace for containers based in Hamburg, Germany, on a customer advisory basis.
“For container trading companies and those involved in container leasing, this incident presents some simple challenges that are worth considering. The disruption at Ningbo Port, combined with pre-existing congestion at major Asian ports, will lead to a deterioration in shipping schedules and further delays in container availability,” said Roeloffs. “Businesses must prepare for increased dwell times, the potential rerouting of shipments and a squeeze on the supply of available containers, especially for dangerous and hazardous goods.”
Ningbo is the third busiest container port in the world, with a volume of 33.35 million twenty-foot equivalent units in 2023.
The exchange advised shippers to evaluate alternative routes through other ports, but to expect increased congestion at neighboring hubs. Shippers should also plan for extended delays amid longer dwell times at major ports and adjust inventory levels and delivery schedules accordingly.
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