The closure of Ningbo Beilun’s Phase III Terminal is expected to have significant ripple effects on the primary trans-Pacific trade routes from Asia and the global supply chain during the peak shipping season.
As reported by Stuart Chris for FreightWaves, container operations at Ningbo have been halted following an explosion involving hazardous materials on the Yang Ming vessel YM Mobility. The explosion, which reportedly involved organic peroxide materials, occurred at one of the world’s busiest intermodal hubs.
Fortunately, no injuries were reported, but the terminal remains closed until further notice.
Ningbo, the world’s third-busiest container port, handled 33.35 million twenty-foot equivalent units (TEUs) in 2023. The timing of this shutdown is particularly challenging as record peak volumes for North American imports are forecasted for August. This follows an “early peak” in June, when shippers rushed to move holiday merchandise in anticipation of further supply chain disruptions later in the year.
“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 CEO of Container xChange, a Hamburg-based online container marketplace, in a customer advisory.
Roeloffs warned that the disruption at Ningbo, combined with ongoing congestion at major Asian ports, will likely worsen ocean shipping schedules and delay container availability. “For container trading companies and those involved in container leasing, this incident presents some straightforward challenges worth accounting for,” Roeloffs noted. He advised companies to prepare for longer dwell times, potential re-routing of shipments, and a tightening of available container supplies, particularly for hazardous and dangerous goods.
Container xChange recommended that shippers explore alternative routes through other ports but cautioned that congestion at nearby hubs would likely increase. Additionally, shippers should plan for extended delays, adjust inventory levels, and modify delivery schedules to account for the longer dwell times expected at major ports.
