Update on Disruption to Yantian International Container Terminal Operations in South China (June 24,2021)

Please find below an update the latest development in Yantian International Container Terminal (YICT) and the overall situation in Pearl River Area, South China.

Key Facts:

1. YICT is tracking well on its journey of recovery. Yard utilization has further dropped to 60% while restrictions to the gate-in numbers of trucks with export-laden and the gate-in opening time remains.
2. Port omission are persisting as carriers continue expanding the list of impacted vessels. By a prominent ocean carriers estimation, vessels delays at the port is up to 4 days and expected to continue for the coming weeks.
3. Diversion of the export flow from Yantian to alternative ports like Nansha is creating unprecedented pressure in the terminal and all parties involved with export activities. Nansha port authority temporarily closed a part of the port terminal (3^rd Phase) in order to manage the huge surge in traffic for export.
4. Carriers continue to face serious equipment shortages in Shenzhen and Guangzhou area, especially for 40’GP and 40’HC.

Impact:

1. There should be no overestimation of the progress of YICT recovery as the backlog will inevitably take time to be cleared. Carriers are still struggling to improve schedule reliability with port omissions. Capacity remains highly constrained and last-minute changes on port rotations should continue to be expected.
2. Trucking capacity is restricted as vehicles and drivers are consumed by the volume of traffic. It takes up to a full working day to pick up empty containers or return export-laden.
3. Equipment shortage will continue to hamper export movement for a number of for weeks.