Fears of knock-on congestion from Dalian closure
Chinas Dalian port has reopened to traffic following a oil pipeline explosion earlier this week, but operations at Dalian Port Group crude oil terminal remain suspended pending a full investigation into the cause of the incident.
However, the fear is that a knock-on effect of the closure may well lead to extra congestion in the area.
Dalian handles a moderate amount of iron ore, coal, and soybean imports in addition to other commodity trade, and it’s expected that Qinhuangdao and Caofeidian will see more activity, with both of them picking up any overflow of coal imports. However, its China’s grain that will have been impacted most.
Andrew Winkler of Commodore Research said: “Dalian is an important part of China’s domestic grain trade, with the government ramping up the internal north-south corn trade and June’s total corn loading at the port up 48% over the prior year at 322,000 tonnes.”