Are you interested to know about china’s shipping ports?

Do you want to know more about “china port closure”?

Coastal ports in China provide for the transfer of coal, containers, imported iron ore, grain, and roll-on-roll-off activities between the mainland and islands and access to the sea at depth. 

For the first ten months of the fiscal year 2021, Chinese ports received 235.48 million TEU. Compared to the same period in 2020, this represents an increase of 8.4 percent.

Here we discuss all of china’s major container shipping ports; therefore, continue scrolling.

Table of Content

Chapter 1:  10 Major China’s Container-Shipping Ports

Chapter 2: What are Container ports in China, and What can be done to improve a port’s connectivity

Chapter 3: Is It China’s Port Closures that Are Causing Supply Chain Disruption?

Chapter 4: COVID Bites at Chinese Ports, Putting Global Supply Lines at Danger

Chapter 5: China’s Zero-Covid Policy

Chapter 6: China’s Yantian Port Resumes Full Operations

Chapter 7: Frequently Ask Question About Container Ports in China

Chapter 1:  10 Major China’s Container-Shipping Ports

1. Port of Yingkou

Port of Yingkou

Last but not least is the Port of Yingkou. This port is located in Northeast China.

Yingkou has experienced an increase in traffic each year, handling more than 4,000,000 TEUs in 2010, and even more in 2016, with 5.92 million TEUs.

The Port Of Yingkou handles a variety of cargoes, including:

  • Grain
  • Sugar
  • Coal
  • Steel
  • Minerals
  • Vehicles

Despite the port’s annual throughput being high, 2015 was the year it joined the global top 50 container ports.

2. Port of Xiamen

Port of Xiamen

The Port Of Xiamen, located on the Jiulongjiang River (province of Fujian), is second to the last list.

 The Xiamen Port is situated near Taiwan. This makes it the nearest mainland port. Also, it was the first port to ship cargo directly into the Kaohsiung Port in Taiwan.

This is the reason for the high throughput of the Xiamen Port. 2013 saw a Port of Xiamen produce 8.08 million TEUs per calendar year.

It is also famous for its services, which offer 65 shipping routes to more than fifty countries.

3. Port of Dalian

Port of Dalian

China’s largest ports ranked in terms of their size. The Port of Dalian ranks among the top five, covering 134 miles of water area and 5.8 miles of land.

This deepwater port serves as a transshipment hub in China for containers and connects to more than 160 other countries.

Although still making it to the top 10 most important ports in China regarding annual throughput, Dalian is showing a significant decline.

It also registered the largest annual percentage drop in throughput. Port of Dalian is experiencing a 41.7% drop in container throughput.

 This also reduces 3.7million TEUs per year.

Several factors may cause the rapid decrease in container throughput:

  • Hinterland shifts
  • Weakening GDP
  • Reefer shipments are choosing to ship to the Yingkou Chinese port areas.

4. Port of Tianjin

Port of tianjing

Looking at Northern China from different perspectives, the Port of Tianjin ranks as the country’s largest port.

 It also boasts the 100-kilometer-long largest man-made maritime port in China. The Port at Tianjin was previously known as Port at Tangu. It was an early trading port in China and began operations as early as during the Han Dynasty.

The Tianjin port is known for handling huge quantities of cargo. These numbers continue to rise year after year. Below is a summary.

Port Tianjin’s annual TEUs handled have shown a strong growth rate. Location is an important factor in this success.

 The port serves 11 Northern provinces of China, including Mongolia, and is the nearest port to Beijing.

Tianjin’s port connects Northeast, Central, & West Asia, making it one of the most connected ports in Asia.

5. Port of Qingdao

Port of Qingdao

The Port of Qingdao also handles 17.44 Million TEUs annually, according to 2016 data.

The Qingdao port broke the record for handling 20,000,000 TEUs annually in 2019, evidence of its continuous traffic growth.

The Qingdao terminal is a transshipment and special port for reefer shipping. The port is well-known for its large terminal transports, handles, and stores iron ore.

This goal is achievable considering the Qingdao port ranks sixth in metal ore processing.

6. Port of Hong Kong

The Port Of Hong Kong was once the largest port on the globe. Its throughput has declined, and it is now in second place, down from its previous position in 2004.

Over the years, the throughput and traffic in Hong Kong have been declining steadily. It dropped from 21 miles in 2009 to 20 miles in 2016 and was even less in 2017.

However, the port in Hong Kong remains in contention for being one of China’s most important ports, despite its declining throughput.

7. Port of Guangzhou

Port of Guangzhou

China’s Guangdong Province’s principal port is the Port of Guangzhou. It is found in the Pearl River, an important location to access Macau and Hong Kong.

 The port was once number one in China’s most important cargo ports during the Ming-Qing dynasties. But it has maintained its good reputation.

Guangzhou port handled 21.8 million TEUs in 2018. This is a big improvement in its 2016 throughput, 17.59 Million TEUs.

This steady traffic growth can be attributed to the Port of Guangzhou’s expertise in handling goods for the industrial, agricultural, and manufacturing sectors.

Its geographical location allows it to service nearby provinces like Guizhou and Guangxi and Sichuan, Jiangxi, or Yunnan.

8. Port of Ningbo-Zhoushan

The Port of Ningbo Zhoushan has the largest port in China. It handles 28.72million TEUs each year.

 That number increases at a remarkable 4.3% annually. Ningbo Zhoushan ranks third among the top 10 largest Chinese seaports.

 It’s also the first port capable of handling 1,000,000 tons of cargo in one year.

 It’s also one of the three largest ports globally, with an annual container volume exceeding 28 million TEUs.

These numbers are quite staggering. It’s worth looking at what materials they handle when considering how Ningbo Zhoushan port could achieve them.

The Port Ningbo Zhoushan can handle large quantities of crude oil ore and store liquid chemicals.

A key factor in the port’s high annual throughput is its location at the Maritime Silk Road Economic Belt intersection point.

9. Port of Shenzhen

Port of Shenzhen

Port of Shenzhen has been called the bridge that connects South China and the rest of China. It is located in Guangdong Province.

 It serves as the main port and gateway to Hong Kong and the Pearl River Delta.

There are two parts to the Port of Shenzhen, the eastern and western ports. These supports take the Port of Shenzhen to 260km.

Its strategic position has made it an appealing import and export option for companies worldwide, especially the tech sector, which numbers thousands in Shenzhen.

The Port of Shenzhen handled a record 23.98m TEUs in 2016. This figure increased to 27.7m in 2018.

The Port of Shenzhen is the second largest port in China and the third world.

10. Port of Shanghai

The Shanghai port is China’s busiest and largest, contributing to its position on the China main ports list.

In 2017, the Shanghai port handled an average of 40 million tonnes of EUs. Shanghai Port is capable of handling over 100,000 TEUs every day.

This exceeds the 33.7million TEUs per year handled by Singapore Port. Since its opening nearly 40 years ago, the Shanghai port has experienced tremendous growth in its size and capacity.

The Yangshan Deep Water Port can be found at the Port of Shanghai. This port is regarded as the world’s largest automated container terminal.

It is strategically placed near Zhejiang, Jiangsu, and Zhejiang. Because of its rapid growth, the Shanghai Port is expected to continue to expand in size and capacity.

10.Port of Shanghai

 It is anticipated that the port’s annual growth rate will be 8.3%.

· Port of Shanghai Background

The Yuan Dynasty granted official city status to Shanghai’s Port of Shanghai in 1297. In 1684, the Qing Dynasty permitted ocean-going ships to use the port.

The port then became the most important in the Yangtze region by collecting customs duties for all trade.

The port became an international trading port in 1842 under the Treaty of Nanjing.

It became more accessible when foreign countries were freed from local rules after the Treaty of the Bogue of 1843 and the Sino-American Treaty of Wangsai of 1844.

After the Second Sino-Japanese War ended, the Japanese grew to be an important community and built the port’s first factory.

China took the port under its control in 1949. This was a major development that severely impacted foreign trade at the port.

· Port of Shanghai Facilities and Services

Shanghai’s port is home to two bulk cargo terminals and three breakbulk terminals. The terminals are located within the Luojing Wusong and Longwu regions.

The cruise terminal spans 160km 2. It also has an 850m-long bay wall and four large landing areas.

 It can hold one million passengers per year. You can find various services at the port, including pilotage, tugboats, shipping tally, agency, and port Information Technology Service.

· Port Terminals

Port Terminals

Shanghai’s Port of Shanghai has three major container port areas: Wusongkou Waigaoqiao Yangshan.

 Container terminals span more than 13 km and have 43 berths and 156 quay cranes.

Shanghai Container Terminals Company, a joint venture of Hutchison Port Holdings Limited(HPH) and SIPG, manages Wusongkou. SCT runs three container terminals in China: Zhanghuabang Terminal, Jungong Road Terminal, and Baoshan Terminal.

SCT also offers container cleaning, management and storage, delivery, and electronic data interchange.

· Port Expansion

Yangshan Deepwater Port, due to the insufficient water depth at its mainland, was developed in four phases.

The deepwater port, located in the East China Sea, is 30km from the mainland. A bridge of 32.5km connects it with the mainland.

The $7.5bn investment to build Phase I of the terminal opened it in December 2005. The terminal can operate at a depth of 16m, and it has five berths.

The terminal handled 3.1million TEU during its first year.

Phase II of this terminal was built at $7bn. It opened its doors in December 2006. The terminal is capable of handling approximately a 2.1million TEU.

  It has four berths. Phase III began operations in 2008. The operation of Phase IV was started in December 2017.

 It is the most advanced and largest automated container terminal, with two million TEUs handled during its first year.

Chapter 2: What are Container ports in China, and What can be done to improve a port’s connectivity

Globalization is known for its containers, handled annually in hundreds of thousands at worldwide container ports.

A network of efficient container ports connected by regular shipping services is key to minimizing trading costs.

Port performance is crucial for countries to be competitive in trade. Ships can save an hour in port, resulting in lower port infrastructure and ship capital costs.

This also means that shoppers will spend less on inventory holding.

1. Go Digital

Go Digital

Physical connectivity and digitalization go hand in hand. Trade benefits from the Internet of Things, artificial intelligence, and blockchain are also available to port and shipping operators.

2.  Connect Domestic, Regional, And International Networks

Limitations on regional or domestic shipping markets restrict the ability of shipping companies to consolidate their cargo.

 International lines that can carry domestic and feeder cargo are more competitive and allow shippers to access international markets.

3.  Maintain A Level Of Competition

It is necessary to conduct a preliminary analysis before granting port concessions to terminal operators involved with shipping lines through a vertical integer.

 Such operators can attract port visits from related lines and alliances on the one hand.

maintain A Level Of Competition

However, such vertical integration could deter other lines from calling port and limit shippers’ options.

4.  Modernization Of The Port

Port clients, i.e., shipping lines and traders, need fast, reliable, and efficient services to ship and cargo.

 Ports must invest continuously in their technological and human capacities. Public and private cooperation is essential in this regard.

5.  Increase The Size Of The Hinterland

Ports should be able to attract goods from neighboring countries and local production centers.

 There is a shared interest between seaports and traders from neighboring countries, especially landlocked ones.

Investments into corridors, regional trucking marketplaces, cross-border commerce, and transit facilitation could help expand ports’ hinterlands.

6. Promote Sustainability

Port stakeholders may include traders, shipping companies, and social partners and communities.

The increasing demands of stakeholders on ports are to fulfill their social, environmental, and sustainability requirements.

7.  Monitor Ports’ Connectivity

Investors, policymakers, and port authorities must continuously monitor trends in the global maritime network, the geography of commerce, fleet deployment, and port performance.

UNCTAD’s Revision of Maritime Transport and the online statistical data (and country profiles) support this monitoring objective.

Chapter 3: Is It China’s Port Closures that Are Causing Supply Chain Disruption?

Is It China's Port Closures that Are Causing Supply Chain Disruption

1. What Caused The Supply Chain Crisis?

The COVID-19 pandemic has undoubtedly caused the current supply-chain bottlenecks. China’s initial lockdowns, in early 2019, saw many factories stop production and operate at significantly reduced capacities.

The subsequent global lockdowns caused a drastic drop in consumer spending and a significant decrease in demand.

China had its factories shut down, and the Chinese consumer strained their finances overseas.

Global trade stagnated, and Chinese imports & exports declined by 6.7% and 11.4%, respectively, in Q1 2020.

2. Slow Shipments And High Shipping Costs

Shipping times are significantly reduced due to delays caused by logistic bottlenecks. Freightos reports that shipping times between China (and the US) took an average time of 80 days.

Another result of the supply glut is a shortage of shipping containers. There is fierce competition between companies for containers.

 This has led to increased freight costs and higher prices.

The rate of container shipping between the US-China exceeded US$20,000 by August 2021.

3. Rising Costs Of Raw Materials

3.Rising Costs Of Raw Materials 

The skyrocketing cost of freight containers is partially to blame for the soaring raw materials prices.

This impacts Chinese manufacturers of everything you can imagine, from toys to cars batteries to automobile batteries.

This further fuels inflation in countries worldwide as high-cost materials are transferred to consumers.

A key component in producing electric cars (EVs) batteries is lithium carbonate.

China’s lithium prices in December 2021 had increased by 485.8 percent compared to the same period in 2020, exceeding US$40 per kilogram for the first time, according to Benchmark Mineral Intelligence (BMI).

This will increase the price of EVs in 2022.

4. Factory Closures

China’s COVID-19 spores have also caused the closure of factories in China, further impacting supply chains.

 It has also contributed to the slowing down of the economy in 2020.

Factory closures took place in Nanjing, one of the main centers of the Delta variant outbreaks, during the summer of 2021.

A recent outbreak in Zhejiang, China, in December 2021 prompted the partial Ningbo Port closure.

factory closures

It also resulted in the closure of several factories, including Ningbo’s and Shaoxing’s, which are important exporters.

In the wake of an Omicron-related outbreak, several factories, including those in Tianjin and Volkswagen, had to suspend production by January 2022.

5. What Is The 2022 Outlook For Supply Chains?

Most analysts agree that disruptions in the supply chain will continue through 2022 and possibly into 2023.

The high prevalence of COVID-19 is a sign that there are still severe staffing shortages in ports and logistics centers in countries like the US.

 This means that congestion will remain a problem over the coming months.

However, it is possible that a new COVID-19 virus could be spread. New lockdown measures will be implemented if this happens, and workers will be allowed to take sick leave.

The other side is that, except for a new COVID-19 model, as other nations move to a living with the COVID model, lessening lockdown restrictions might mean a decrease in imports as societies return to service-oriented consumption.

 This could help ease some of the world’s overburdened supply networks.

6. How Will These Impact Chinese Exports?

Despite the supply disruptions in 2021, China saw very strong exports. They grew 29.9% over the year to achieve a record-high trade surplus.

 This was due to high demand in the developed world.

There are signs that the global export boom may be ending in 2022.

 First of all, despite the high average growth rate for 2021, the growth rate had slowed in the second half.

China Customs data showed that December’s trade growth was 20 percent, less than 27.8 % year-on-year growth.

 However, it was slightly slower than November’s growth rate (22.2 percent).

7. Can We Expect More China Port Closures?

Can We Expect More China Port Closures

China has not indicated that it will ease its zero-tolerance policy toward COVID-19 as it stands now.

 This is especially true for high-profile events like Beijing Winter Olympics and Paralympics.

These events will occur from February 4th to 20th and March 4th to 13, respectively.

The 20th Party Congress, scheduled to be held in fall 2022, is another important event.

This event is of high importance, as President Xi Jinping has been expected to be sworn to the office for a third term.

The government must maintain high levels of confidence throughout this period. It is crucial to keep COVID-19 low for this goal.

8. The Obstacles To Supply Chain Recovery

China port closures contribute to continued disruption in the global supply chain, but they are not the only factor.

  Stable operations and high productivity will be essential for restoring global supply chain stability.

Because the current system is fragile, even small bumps could cause delays that can significantly impede progress on congestion relief.

Chapter 4: COVID Bites at Chinese Ports, Putting Global Supply Lines at Danger

COVID Bites at Chinese Ports

SINGAPORE 16 March (Reuters) – Container ship lines outside major Chinese ports are increasing as COVID-19 outbreaks at manufacturing export hubs, and other global supply chain shocks create new challenges for global supply chains ship owners, logistics firms, analysts.

China is experiencing the highest number of COVID-19 cases since the outbreak in Wuhan in early 2020.

The spread of the Omicron variant has caused movement controls in China. They have also been placed in Dongguan and Shenzhen, key manufacturing hubs.

China’s main ports remain accessible, and vessels continue to dock. But congestion is building up, and some container ships are rerouting to avoid delays.

1. Supply Chain Crisis

Container loading is declining massively at Shenzhen’s Yantian terminal, the fourth-largest container port in the world. This is because port workers, truckers, and factory workers have stayed home.

Lars Jensen, Vespucci Maritime’s CEO, said that this implies that it will be more difficult to transport cargo from ports to and to the ports.

 Therefore, whether terminals are open or closed becomes a moot point.

2. “Whiplash Effect”

Similar COVID lockdowns in Yantian last year saw operations at Yantian reduced to one-third their capacity.

This led to a larger disruption of global shipping that the Suez Canal closed for six consecutive days last year following the Ever Given container vessel’s sinking.

Maersk Director, the world’s largest container liner, observed last year.

3. Inflation

Because of bottlenecks in other export hubs nearby, such as Hong Kong or Shanghai, vessels might need to wait for congestion to load cargo.

 This will cause phones, televisions, and toys to take longer to arrive in the United States.

  Shipping lines also face the possibility of Omicron variant OVID cases rapidly escalating in China.

This could lead to greater disruptions and impact on already rising global inflation.

Chapter 5: China’s Zero-Covid Policy

Chapter 4China's Zero-Covid Policy

Analysts predict that China’s new “zero tolerance” policy toward Covid will worsen this year’s already stressed supply chain.

 Some experts warn that this might not be China’s last port closure. As long as Beijing continues to hold this position, Dawn Tiura, CEO of Sourcing Industry Group, a group for the sourcing industry and procurement industry -said that China’s stance would have “severe” supply chain consequences.

1. Implications of China’s ‘Zero Covid’ Stance

China’s zero-tolerance to Covid means that this latest port disruption maybe not be the last, Nick Marro of the Economist Intelligence Unit, head of global trade.

2. China Expected To Raise Handling Fees

The increased ocean freight rates are likely to cause a rise in container handling fees at Chinese ports.

The potential mark-ups will be a boon for terminal operators looking to make higher returns. But there are worries about whether this will cause Chinese government intervention.

It is committed to reducing the financial burden on shippers already struggling with high shipping prices.

Ningbo Zhoushan is the third-largest container port on the planet. It has already stated that it will raise its handling fees for import and export boxes by around 10%, beginning in the new year.

 It has been speculated that it will follow the lead of other domestic competitors.

3. China’s Lead in the Container Port Business?

China is the biggest exporter and importer of containerized goods. Manufactures eight of every ten new containers, is a leading shipbuilder, and has the fourth-largest liner business.

It shouldn’t surprise that China dominates the global container port rankings. This is despite ocean trade increasing rapidly.

Chapter 6: China’s Yantian Port Resumes Full Operations

1. Supply Issues and Soaring Prices

1.Supply Issues and Soaring Prices

Highlights from this week: Western governments contemplate a response to oil shortage; EU debates how to counter soaring gas price; talks to speed renewable energy projects; COVID-19 lockdowns China, a concern to container shipping markets.

  • Oil markets confront Ukraine crisis and uncertain demand (00.12)
  • Policy leaders meet to discuss emergency energy measures at 01:11
  • China locks down container shipping market (02/20)

2. Russian Urals Crude Falls

China’s Yantian Container Port announced on June 24 that it had resumed its full terminal operations.

This will provide relief to all those involved in the global logistics chain.

With a heavy backlog of ships and vessels in the queue, the port has announced that it will soon resume normal operations.

Nearly a month had passed since the return to normal operations of the port following an outbreak in Shenzhen coronavirus.

Yantian International Container Terminals (YICT) has issued an update stating that all berths will return to normal operations.

 They will also allow export-laden containers to be accepted within seven days from the vessel’s arrival.

Due to the severity of congestion and subsequent delays at the port, measures taken against the spreading virus have caused severe congestion over the past month.

These problems now reach the neighboring ports Nansha & Shekhou and key Southeast Asian ports.

3. Long Term Demand for SAF Could Run Into Supply Constraints

3.Long Term Demand for SAF Could Run Into Supply Constraints

Many countries have either proposed or adopted long-term SAF blending targets.

However, with limited supply likely to limit growth to 2050, many countries may not be able to meet their blending targets.

S&P Global Commodity Insights project that SAF consumption by 2050 will reach 5.8% of global jet fuel demand based upon current and pending commercial commitments.

 However, demand for SAF is concentrated in Europe, the US, and Asia.

S&P Global calculates that if all countries meet their 2050 SAF blended targets, it will result in an annual supply requirement equivalent to 17.5 billion gallons (1.14 million BOE/d) across all types of sustainable aviation fuels biofuels, and synfuels.

4.  Supply Constraints

Given the current SAF supply volumes, which are estimated at just above 200 million gallons each, an amazing 17.3% growth would be required to reach a minimum of 17.5billion delivered volumes by 2050.

This requirement for growth could be conservative, given the potential that more countries will announce targets or allow blending to happen even in countries not having targets.

5. Commercial Obligations

5.Commercial Obligations

S&P Global monitors nearly 120 production facilities already in operation or planning.

This allows us to evaluate the likelihood of our supply requirements being met. These production facilities total approximately 11.5 million gallons.

However, these facilities are often driven by commercial realities and aim to maximize the production of renewable fuel diesel.

S&P Global believes that the supply will rise by almost eightfold by 2020, which is remarkable and sufficient to meet all medium blending targets.

 However, this picture changes dramatically from 2030-to 2050. Expected supply availability drops significantly below combined national blending goals.

S&P Global, in response to this shortage, has created a database that tracks commercial-level SAF offtake commitments.

The database includes more than 46 airports receiving regular SAF distribution (plus 36 batch deliveries) and numerous industry consortia, which have signed offtake agreements or set aspirational targets for blending.

6. Balancing Supply And Demand

S&P Global projects that by 2050 there will be 8.7 Billion Gallons of SAF available due to feedstock constraints.

This forecast is positive as market drivers may shift RD production towards SAF.

Also, policy support measures are being developed that could enhance the commercial case for SAF.

From a demand standpoint, there is great upside potential. Countries like China and India are large growth markets for jet fuel demand and could establish a supportive policy framework for SAF penetration.

 Technological improvements could also increase the SAF blend wall limit in commercial aviation.

Chapter 7: Frequently Ask Question About Container Ports in China

faqs about containe ports in china

1. How Many Container Ports Does China Have?

China has 34 major ports and over 2000 minor ports.

2. Which Are China’s Largest City And Its Main Port?

Synonymous with global trade, Shanghai has the largest container and cargo port in containers and tonnage. A grand business district, two large international airports, and the world’s fastest train (the Maglev) are part of the Shanghai network.

3. How Many Shipping Ports Does China Own?

China owns over 100 ports in approximately 63 countries, and it’s a vast accumulation of national shipping infrastructure.

4. Where Is China Building Ports?

Radio Free Asia reported on China’s construction of a new military port at Bata within the Central African Nation of Equatorial Guinea. It is the first Chinese port built along West Africa’s Atlantic coast.

Conclusion

Container shipping is subject to path dependence. Major regional connections exist between China and the maritime areas of East-Southeast Asia (West Europe) and North America.

 Container shipping connections from China to these regions have become the major backbone of China’s container ship network.

 These connections are expected to get more concentrated.