https://www.bnnbloomberg.ca/china-typhoons-create-latest-supply-chain-threat-as-ports-shut-1.1636362
Heavy rain, high winds and flooding this year are tying up global trade as the already overstretched shipping industry struggles to recover from disruptions ranging from Covid-19 outbreaks to geopolitical unrest. There may be worse to come, as officials predict more typhoons will hit China this month.
“Each time a port is forced to close, containers continue to pile up, adding to existing delays,” said Alex Hersham, CEO of digital freight-forwarder Zencargo. “And as this season is expected to be heavier than usual for tropical cyclones, we can expect more delays like this.”
Supply chains have faced a string of bad luck this year. A Covid-19 outbreak among port staff was to blame for a partial closing of Yantian in May, leading to container goods piling up for a month. As ships diverted away from southern China, some factories in the nearby manufacturing hub of Guangdong shut down because of excess inventory that couldn’t be exported, according to analysts and logistics intelligence firm project44.
“The impact of Yantian’s closure was unprecedented on the supply chain because it serves one of the world’s largest manufacturing bases,” said Salmon Aidan Lee, head of polyesters at consultant Wood Mackenzie Ltd. “If we have a few more typhoons that come our way, and knock down production a few days each time, this problem will get worse.”