Port of Ningbo Explosion Yet Another Catalyst for Potential Congestion
A terminal at China’s Port of Ningbo-Zhoushan reopened Monday after an explosion on a container ship forced it to close over the weekend.
The Yang Ming Mobility was berthed at Ningbo’s Beilun Phase 3 Terminal when a container exploded Friday, sending a vast plume of flames and smoke into the air. Immediate firefighting measures were taken, Yang Ming said in a Saturday statement.
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Initial investigations suggest the explosion came from lithium batteries and the organic compound tert-butyl peroxybenzoate, which must be stored in temperatures not exceeding 30 degrees Celsius. The items were reportedly held in a reefer container, which is designed for goods that need to be temperature controlled during shipping.
All crew members and on-site personnel were safe, and no casualties have been reported.
“Once the incident is fully resolved, Yang Ming will assess the possibility and feasibility of vessel repairs, cargo transshipment and schedule adjustments, with the safety of personnel and the vessel as the top priority,” the ocean carrier said.
Luckily, the explosion did not severely affect vessel and container handling operations at the port, according to a Monday update from logistics services and freight forwarding giant Kuehne+Nagel.
But berthing schedules will have to be adjusted as the terminal catches up from its nearly three-day closure, which may result in long-term delays and even congestion.
Dwell times of up to nine days were already being reported prior to the explosion, according to Worldwide Logistics Group.
“Delays will affect other ports throughout the area including Shanghai, Xiaman, Hong Kong, Singapore and Port Kelang,” said Willy Fong, president of Worldwide Logistics Group’s APAC region, in a customer advisory. An alert from Freightos also reported that numerous ships scheduled for Ningbo were rerouted to ports like Shanghai and Qingdao, causing congestion and delays at these locations.
Kuehne+Nagel expects delays of up to four days for containers loaded or booked on the YM Mobility. According to the firm, all containers onboard the vessel have remained on the ship and await further investigation.
Ningbo-Zhoushan, the world’s third-busiest container port handling 35 million 20-foot equivalent units (TEUs) in 2023, had already been hit by Typhoon Gaemi in late July. This came as import demand from both the U.S. and Europe started to peak, exacerbating schedule disruptions already felt on Asia’s main export trade lanes.
As of July 24, Ningbo-Zhoushan was the second-most congested port worldwide, with average combined anchor and berth time of 5.2 days, according to supply chain visibility platform Beacon.
“For container trading companies and those involved in container leasing, this incident presents some straightforward challenges worth accounting for. The disruption at the Ningbo Port, combined with pre-existing congestion at major Asian ports, will lead to a deterioration of ocean schedules and further delays in container availability,” said Christian Roeloffs, co-founder and CEO of online container trading and leasing marketplace Container XChange.
Roeloffs stressed that regular updates from shipping partners and port authorities will be crucial in adjusting operations in real time, and that companies should maintain open lines of communication to adjust operations. Additionally, he called to prioritize rigorous inspections and adherence to safety protocols, particularly for hazardous goods, to prevent similar incidents.
“Ningbo-Zhoushan is a hugely important and well-connected port in the Far East, second only to Shanghai in China and on par with Singapore. It is a critical hub for container shipping and this incident is deeply concerning from a safety perspective,” said Peter Sand, chief analyst at ocean freight and air freight benchmarking platform Xeneta, in a Friday blog post.
However, Sand said the incident was unlikely to have a significant impact on the wider container shipping market, and ocean freight rates.