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Supply Chain Update - Asia ports

Following our most recent advisory on the situation at Yantian port and the impact on global supply chains, please find an update below:

While the number of open berths at Yantian port increased to 8 as of 2 days ago, the port will not be fully operational before the end of June. The target is currently to reopen all berths by the end of the month. 

Reports have shown there is a reduced number of vessels waiting to berth, which is due to a large number of vessels omitting the port, more on this here. As reported, Hong Kong, Chiwan, Shekou and Nansha port are seeing congestion as a result of vessels omitting Yantian and choosing alternative routes.

The situation at Yantian port is causing disruption more significant than the recent blockage of the Suez Canal by the Ever Given. This is due to the current situation having already impacted the ocean freight trade for several weeks (rather than 6 days as was the case with the Ever Given), with Yantian being a key gateway port to the rest of the world, handling around 13.5m TEU a year (about 36,400 TEU a day).

The backlog of cargo is estimated to be around 400,000 TEU now and the supply chain impact is estimated to affect shipments all the way up to Christmas with rate increases up to 1000% on the usual spot rate (source: the Loadstar) and serious capacity shortage around one of the busiest times of the year expected as reported on by the BBC.

Please be reminded to contact us as early as possible to discuss your supply chain planning, possible routing and transport solutions. Please contact your local Woodland representative or reach out to us here.

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