AS the world's third-largest box gateway Ningbo fights a Covid outbreak that has resulted in the lockdown of its Beilun district since last weekend, cargo owners are diverting freight away from the port to ship through Shanghai and Xiamen.
While Ningbo's five container terminals, including the three in Beilun, are operating normally, the lockdown has led to trucker shortages and warehouse closures, making it impossible to get products to and from factories in the lockdown areas, reports IHS Media.
"We are seeing an increase in shippers reassigning cargo to Shanghai or Xiamen ports [instead of Ningbo]," said Nick Xu, regional director/key accounts management at freight forwarder Rhenus Asia Pacific.
Mr Xu said transport options include trucking containers to the two ports or using barge services via the Zhapu feeder port or container train services via Hangzhou to Shanghai. But the cost of those alternatives has doubled and space availability is critical, he added.
About 20 percent of truckers have been given access permits, while the majority are in quarantine.
"We're hearing from suppliers that the situation is improving but we have gotten no specifics," said the logistics manager at a US consumer products wholesaler. The source said factories supplying the company are working, but because they are in the lockdown zone nothing is moving in or out.
"We still have pending shipments impacted," the executive said.
The city's latest Covid outbreak could affect US$4 billion worth of imports and exports there for just one week, risk consultant Russell Group said earlier.
That figure, based on the period between January 1-8, includes $236 million of integrated circuit boards and $125 million of clothing, Russell Group said.
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