China partly closes the world’s third-busiest port amid COVID-19 infections. The country shuts down the port after a worker gets infected with COVID-19. Amid threats of damage to fragile goods and world trade, China decides to keep the port partly shut for quite some time.
China Partly Closes the World’s Third-Busiest Port
Amid rising COVID19 cases in the country, China partly shuts down the third-busiest port in the world. The Ningbo-Zhoushan port at Meishan terminal is the third-busiest container port in the entire world. However, the port went under lockdown after a worker got infected with COVID-19. In order to provide less damage to the supply chain and global trade, the authorities decided to keep the port shut for a while. Moreover, all inbound and outbound services at the Ningbo-Zhoushan port were ceased on Wednesday until further notice. The Eastern Chinese city’s government declared that a worker has tested positive for COVID-19 at the port.
Not the First Chinese Port to Get Shut Amid the Pandemic
The Ningbo-Zhoushan port accounts for about 25 percent of container cargo via the port. According to Garda World’s security consultant’s calculations, this closure might have a heavy impact on world trade. This suspension will lead to heavy damage to the handling and shipping of goods worldwide. Besides that, the authorities also predicted a delay in sailings. However, this is not the first time that China has shut down a port. This is the second recent suspension of a Chinese port amid a surge in COVID-19 cases in the country. Besides Ningbo, the officials have also shut the Shenzhen port in late May this year. As a result, there is a huge stock of goods in the factories and storage yards. Moreover, this might also lead to an increase in freight charges.
China Might Disrupt the Market as its Shuts Down Two Important Ports
Authorities worldwide fear that this suspension will also lead to strain in international shipping. The port shipped electronic goods, textiles, manufactured goods, crude oil, raw chemicals, and agricultural goods in the first half of the year. However, experts in China believe that this outbreak will also have an impact on oil demand.
On the other hand, Chinese authorities are very strict. They will shut the port down and isolate the workers as soon as they suspect an outbreak. But, these strict measures will definitely have an impact on the market.