Explosion at Ningbo Port Seen Impacting Supply Chains

Container xChange, an online container trading and leasing marketplace, is warning of serious repercussions following the recent explosion aboard the Yang Ming vessel YM Mobility at Ningbo Port, China.

The incident, which has led to the closure of one of the world’s busiest container terminals, is expected to significantly impact global supply chains, especially on the main trade lanes out of Asia.

The incident took place on August 9 when a container loaded with hazardous materials exploded aboard the YM Mobility while it was berthed at Ningbo Beilun’s Phase III Terminal. The explosion, which involved organic peroxide materials, has led to the closure of the terminal until further notice.

YM Mobility is operated by Yang Ming and deployed on the Far East to Middle East route (CGX). The company said the cause of the incident is still under investigation but preliminary findings suggest that an explosion occurred in a container loaded with dangerous goods. According to the shipper’s declaration, the container was a reefer used as a substitute for a dry container, without requiring power connection.

“With this closure, Ningbo Port is no longer operational, compounding existing supply chain disruptions exacerbated by Typhoon Gaemi in July,” said Christian Roeloffs, cofounder and CEO of Container xChange.

Roeloffs emphasized that the disruption at Ningbo Port, combined with pre-existing congestion at major Asian ports, would lead to deteriorated ocean schedules and further delays in container availability. Companies must brace for increased dwell times, potential rerouting of shipments, and a tightening of available container supplies, especially for hazardous and dangerous goods.

Container Xchange recommended several actions to companies, including exploring alternative shipping routes, increasing safety protocols, staying informed with regular updates, and planning for extended dwell times to mitigate disruptions from the Ningbo port closure.

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