Yantian port looking to resume full container operations

Hutchison Port’s Yantian International Container Terminal (YICT) have announced that they will resume full operation from 00:00 on the 24th June, with effective controls of COVID-19 in place in the port areas and daily handling capacity increasing to 27,000 teu’s when all 11 berths return to normal operating levels.

All berths, including those in the west port area, which was closed for three weeks from the 21st May until the 10th June, will resume normal operations.

The number of laden gate-in tractors will increase to 9,000 per day and the pick-up of empty containers and import laden containers operate as normal.

The conditions of accepting export laden containers will return to normal, within seven days of the vessel’s stated ETA.

Since from the COVID outbreak was confirmed in the Yantian port area on the 21st May, operational port capacity declined to 30% of the normal levels, with more than 100 vessel calls omitting the port, in disruption described as being much bigger than the closure of the Suez Canal by the Ever Given grounding earlier this year.

Delays for berthing at Yantian continue to be reported at 16 days or longer, and congestion is growing at the nearby ports of Shekou, Hong Kong, and Nansha, which was reported as being two to four days on Monday.

Ocean Network Express (ONE) has omitted over 40 calls at Yantian and transferred nearly 10 calls to the Port of Nansha, while 2M have so far cancelled 64 calls at Yantian and Shekou port. Hapag-Lloyd has omitted eight calls at Yantian port.

While the hope is that YICTs operational capacity will quickly rise from its low point of 500 containers today, other terminals including Shekou and Chiwan are struggling with surge traffic and yard density well over 90%.

Even with Yantian resuming full operations the congestion backlog will take weeks to clear and carriers omitting calls at the port is a big issue because congestion has now spread to Nansha and Shekou ports and even with the promised resolution, the effects will linger.

YICT STATEMENT

With the full support of relevant government departments and on the premise of strict epidemic prevention, Hutchison Ports YANTIAN (YANTIAN) has taken proactive measures to steadily resume normal terminal operations. Currently, COVID-19 has been effectively under control in the port area, and the operational capacity of the terminals have steadily recovered. It is now decided that from 00:00 on June 24, YANTIAN will resume full operations.

1. All berths (including the West Port area) will essentially resume normal operations;

2. The number of laden gate-in tractors will be increased to 9,000 per day, and the pickup of empty containers and import laden containers remain normal.

3. The arrangements of accepting export laden containers will resume normal with ETA – 7 (within 7 days of the vessel’s ETA) .

While the Yantian situation may begin to ease over the coming weeks, port congestion continues across Southern China and in many other regions globally. Hopefully this will begin to subside as we enter peak season for container demand – we will continually, daily and fastidiously update all our clients and partners on the real situation.

Our commercial and operations teams continue to monitor the evolving situation, overcoming challenges as they arise or mitigating their impact and providing alternative solutions where it is appropriate or necessary. It’s what we do and ensures we are ahead of the market.

Please continue to send us forecast data and order information, at the earliest opportunity. This is an essential ingredient in managing cargo bookings, cargo transit, deadlines and your expectations.

If you have any questions, concerns, or would like any further information regarding the situation in China, please don’t hesitate to contact Elliot Carlile or Grant Liddell.