Yantian disruption spreading in South china

The partial closure of Yantian International Container Terminal (YICT), a single port that handles roughly 13 million TEU annually, is already having a greater impact than the Suez blockage, with vessel diversions creating congestion at nearby ports.

The challenge of finding space on sea, rail, or air out of Shenzhen and Guangzhou is increasingly difficult, as months of strong demand and COVID-safe working practices have maxed out capacity in the South China logistics infrastructure.

These challenges have been massive increased by the recent COVID-19 outbreak at YICT, whose 20 berths form part of the giant Shenzhen port complex, processing 13 million TEU annually.

Practical solutions are limited, with air cargo capacity out of China halved since the third quarter of 2020 and space constraints extending to rail, with delays running to weeks due to the strong demand that has kept space in tight supply.

Trucking capacity is also limited, especially in the South China area where, drivers from high-risk areas are being quarantined for 14 days and can only enter Yantian after two negative COVID-19 tests.

After the COVID-19 outbreak originally hit Yantian on the 27th May, its west terminal was shut and productivity at the east terminal fell to 30%, as workforces were quarantined, or work in smaller teams.

Infections have spread to other terminals in Shenzhen port, and the Guangzhou port of Nansha, with quarantine measures reducing productivity and escalating delays for exports, imports, and returning empties.

Waiting times for vessels to berth at Yantian have increased from half a day, to more than 16 days, leading carriers to cut Yantian from 120 vessel schedules, with almost 50 ships either waiting to berth or inbound as of yesterday.

If Yantian manage to open the west terminal this week, as hoped, this would help to relieve congestion and the vessels cutting may work to YICT’s advantage, by letting them concentrate on the backlog of containers.

Laden export containers at Shekou, Chiwan, and Mawan will only be accepted up to three days before vessel departure from the 6th to 13th of June and Yantian has imposed a similar three-day cutoff during the same period.

Yantian

  • Operating with limited capacity
  • Yard density remains elevated with disinfection and quarantine measures
  • Congestion and vessel delays upwards of 14 days are expected
  • Trucking service into YICT must be reserved in advance
  • Covid test with green health codes required for drivers to enter the terminal
  • Only accept laden export containers with a vessel ETA of three days
  • Terminal workforce reduced by 70% following quarantine restrictions and testing

 

Nansha

  • Diverted vessels and containers creating congestion
  • New restrictions reducing access for transport
  • Traffic congestion building
  • Up to several days wait for container pick-up and laden container gate-in
  • Negative Covid tests required for truck drivers to enter the terminal

 

Shekou

  • Several carriers announced that vessels would omit the terminal
  • 6th of June till 13th of June, export laden container gate-in will be accepted only 3 days prior to vessel ETA

 

Hong Kong

  • The terminal operates as usual at present
  • Following the congestion at the Guangdong province ports, our team checking options 
for customers to transport to Hong Kong for service. However, such operation will require local and China Customs handling and both shipper and consignee must agree on costs and incoterms to apply

 

We continue to do everything we can to mitigate the impact of congestion at Yantian and other South China ports, protecting our customers’ supply chains and providing alternative solutions where necessary. 

If you have any questions, concerns, or would like any further information regarding the situation in Yantian, please don’t hesitate to contact your account manager, or me directly.

News