Closure of southern Chinese port of Yantian exacerbates global logistical problems

Following the incident in the Suez Canal earlier this year and the resulting consequences for the global economy, a further escalation of the logistical problems is now looming. As reported in the Wirtschaftswoche magazine, the port of Yantian, a key cargo handling location in the south of China, is closed. The reason for the closure is an outbreak of coronavirus in the region, according to the magazine. While the terminal at which freighters from the east berth has been able to remain partly open, the area for vessels from western countries has been fully impacted by the temporary shutdown. Many captains are therefore trying to switch to other ports, causing additional congestion in these locations. Retailers and manufacturers are expecting a further increase in freight costs, which have already risen sharply, reported the German trade and business paper Lebensmittelzeitung.