China suspended operations at the Ningbo-Zhoushan port after a worker tested positive for COVID-19, as the country implements its “zero tolerance” policy to fight the pandemic.
- The suspension covers all inbound and outbound services at the Zhoushan port’s Meishan terminal starting Wednesday until further notice. This is the second suspension of a key port in China so far this year.
- The terminal links were servicing shipments to Europe and North America. The port is also the third busiest globally in terms of container volume, with 28.72 million twenty-foot equivalent units in 2020.
- The suspension comes amid China’s “zero tolerance,” which stakeholders say is not warranted by just a single case. Analysts warn that this may not be the last shutdown moving forward.
- China has been reporting a resurgence of COVID-19 cases, attributed to the spread of the delta variant, which is highly transmissible. It recorded 140 daily cases on Monday, the highest since January.
The shutdown is expected to drive container capacity prices higher, which would likely affect consumer prices ahead of the holiday season.