Why is China facing congestion at one of the world’s largest container ports?
Days before the Lunar New Year holiday, exporters in Shenzhen faced logistical challenges as they rushed to load goods from Yantian Port, one of the world’s busiest container terminals.
An eight-day power outage could severely disrupt supply chains and delay shipments.
The impending imposition of additional tariffs on Chinese goods by the United States also added urgency to the situation.
These potential tariffs, which the US government was then considering, created an environment of uncertainty and encouraged exporters to speed up shipments before new trade restrictions were imposed.
According to Reuters, the Lunar New Year holiday and the possibility of tariff hikes led to increased trade activity at Yantian Port.
This cargo traffic rush led to congestion at the port, with long queues of trucks waiting to enter the port and container ships competing for berths.
Increased shares
Yantian Port announced earlier this week that it would increase its daily container volume quota by 15% to 15,000 units between January 20 and 28. The port handles one-third of Guangdong Province’s international trade and one-quarter of China’s exports to the United States.
Truck driver Li Guoliang usually takes very little time to deliver a container full of goods to the container yard at the port. But on Thursday night, it took him two hours to complete this task, according to Reuters.
The main reason is that the port has limited container capacity and yard space as factories rush to ship goods before the holiday, causing congestion.
Another transportation company told Reuters that a truck driver of the company was also stuck in the port area for more than 24 hours on Thursday.
US tariff threat
US President Donald Trump announced on Tuesday that his administration is actively considering imposing a 10% punitive tariff on goods imported from China.
These potential tariffs are intended to address trade imbalances and alleged unfair trade practices but could have serious consequences for both countries.
The president said February 1 could be the deadline for a final decision on the matter.
Once implemented, the 10% tariff would make Chinese products more expensive for US consumers and businesses, potentially reducing demand for those goods.
This could lead to a decline in Chinese exports to the United States and affect many areas of the Chinese economy.
In response to President Trump’s threat to impose tariffs, China’s Ministry of Commerce said on Thursday that China is willing to work with the United States to maintain a stable and healthy economic and trade relationship.
According to Reuters, American buyers and Chinese factories had already taken action before Trump took office on Monday.
China’s exports to the United States increased in December as some American companies expected Trump to impose new tariffs, shipped goods in advance and increased inventory of goods such as toys, furniture and electronics.
Rising transportation costs
The container throughput of Yantian Port reached 17.365 million TEUs in 2024, a record high, up about 7% from the previous year.
The increase is in line with Shenzhen’s 14.6% increase in exports, which reached a record high of 2.81 trillion yuan in the same year.
Freight rates from Shenzhen Fuyong Logistics Hub to Yantian Port more than doubled to more than 2,500 yuan ($345) this week due to increased traffic congestion.
The congestion also resulted in an additional container pick-up fee of more than 1,000 yuan at Yantian Port. The increased tariffs have affected exporters’ performance.
Lee blamed the traffic congestion on Trump’s tariff threats.
Why is China facing congestion at one of the world’s largest container ports?
Days before the Lunar New Year holiday, exporters in Shenzhen faced logistical challenges as they rushed to load goods from Yantian Port, one of the world’s busiest container terminals.
An eight-day power outage could severely disrupt supply chains and delay shipments.
The impending imposition of additional tariffs on Chinese goods by the United States also added urgency to the situation.
These potential tariffs, which the US government was then considering, created an environment of uncertainty and encouraged exporters to speed up shipments before new trade restrictions were imposed.
According to Reuters, the Lunar New Year holiday and the possibility of tariff hikes led to increased trade activity at Yantian Port.
This cargo traffic rush led to congestion at the port, with long queues of trucks waiting to enter the port and container ships competing for berths.
Increased shares
Yantian Port announced earlier this week that it would increase its daily container volume quota by 15% to 15,000 units between January 20 and 28. The port handles one-third of Guangdong Province’s international trade and one-quarter of China’s exports to the United States.
Truck driver Li Guoliang usually takes very little time to deliver a container full of goods to the container yard at the port. But on Thursday night, it took him two hours to complete this task, according to Reuters.
The main reason is that the port has limited container capacity and yard space as factories rush to ship goods before the holiday, causing congestion.
Another transportation company told Reuters that a truck driver of the company was also stuck in the port area for more than 24 hours on Thursday.
US tariff threat
US President Donald Trump announced on Tuesday that his administration is actively considering imposing a 10% punitive tariff on goods imported from China.
These potential tariffs are intended to address trade imbalances and alleged unfair trade practices but could have serious consequences for both countries.
The president said February 1 could be the deadline for a final decision on the matter.
Once implemented, the 10% tariff would make Chinese products more expensive for US consumers and businesses, potentially reducing demand for those goods.
This could lead to a decline in Chinese exports to the United States and affect many areas of the Chinese economy.
In response to President Trump’s threat to impose tariffs, China’s Ministry of Commerce said on Thursday that China is willing to work with the United States to maintain a stable and healthy economic and trade relationship.
According to Reuters, American buyers and Chinese factories had already taken action before Trump took office on Monday.
China’s exports to the United States increased in December as some American companies expected Trump to impose new tariffs, shipped goods in advance and increased inventory of goods such as toys, furniture and electronics.
Rising transportation costs
The container throughput of Yantian Port reached 17.365 million TEUs in 2024, a record high, up about 7% from the previous year.
The increase is in line with Shenzhen’s 14.6% increase in exports, which reached a record high of 2.81 trillion yuan in the same year.
Freight rates from Shenzhen Fuyong Logistics Hub to Yantian Port more than doubled to more than 2,500 yuan ($345) this week due to increased traffic congestion.
The congestion also resulted in an additional container pick-up fee of more than 1,000 yuan at Yantian Port. The increased tariffs have affected exporters’ performance. Lee blamed the traffic congestion on Trump’s tariff threats.
