China has decided to partially close the Ningbo-Zhoushan port after a worker was tested positive for COVID-19. The closure of the world’s third-busiest container port is worrying industry players worldwide who fear a repeat of the worst impact of the pandemic. The Port of Los Angeles said throughput volumes dipped in June after China suspended the Yantian port due to an outbreak. The Port of Los Angeles said something similar could happen following the partial closure of Ningbo-Zhoushan.
Shipping industry sources said the market is concerned about the disruption that the closure might evoke. They said that charterers are already adding pandemic contract clauses as insurance to protect them from paying for stranded ships. The Baltic Dry Index, an international benchmark for bulk shipping costs, has climbed more than 10% since a month ago as the COVID-19 delta variant started to spread rapidly. The Ningbo-Zhoushan port shutdown has not affected US ports, but it could hurt companies relying on container exports from China.
