The global shipping industry already severely hit by the pandemic faces the biggest test of its stamina. Not long ago, it experienced a shock when the Suez Canal had been blocked for several weeks by a vessel. Therefore, when one of China’s busiest ports announced it stopped accepting new export containers due to the Covid-19 outbreak, market participants were unpleasantly surprised. The situation in South China is another "string of disasters we’ve seen plague the global supply chain," Nerijus Poskus, the Vice President of ocean strategy and carrier development for Flexport Inc., said. Many experts are afraid of catastrophic consequences for global trade, although they expect the situation to improve.
At the end of May 2021, Yantian Port closed because of the COVID-19 outbreak. It was supposed to be up and running again in a few days but it did not happen. The port management stated that it would be back to normal by the end of June. In the worst-case scenario, it will take several months to sort out the accumulated cargo.
"The trend is worrying, and unceasing congestion is becoming a global problem," A.P. Moller-Maersk A/S, the world’s No. 1 container carrier, said. Currently, 139 container ships are moored off the coast of China. According to experts, this is 50% higher than the average figures of mid-April and early May.
Importantly, the closure of Yantian port may be a more serious problem than the congestion in the Suez Canal that occurred in the spring of this year due to the container vessel Ever Given. Six days later, the ship was taken off the shoal. During this time, a traffic jam of several hundred ships was formed. This caused damage to the global economy due to delays in the supply chain.
