The critical need for safety preparedness

On August 9, 2024, a container loaded with hazardous materials exploded aboard the YM Mobility while it was berthed at Ningbo Beilun’s Phase III Terminal, causing a 60 hour closure to operations.

“For container trading companies and those involved in container leasing, this incident presents some straightforward challenges worth accounting for. The disruption at the Ningbo Port, combined with pre-existing congestion at major Asian ports, will lead to a deterioration of ocean schedules and further delays in container availability in the coming weeks,” said Christian Roeloffs, cofounder and CEO of Container xChange.

”Companies must prepare for increased dwell times and a tightening of available container supplies, especially for hazardous and dangerous goods.”

Recommended actions

Mr Roeloffs emphasised that there are important steps that customers and stakeholders should take over the next few days to mitigate further disruption.

Firstly, consider reroute shipping routes by exploring and evaluating alternative shipping routes through less congested ports to avoid delays.

There should also be regular updates from shipping partners and port authorities, which are crucial for real-time operational adjustments. 

In addition, a plan needs to be created for extended dwell times. Longer dwell times at major ports should be anticipated so inventory and delivery schedules need to be adjusted accordingly. Inventory levels could be increased to mitigate disruptions.

The port should also prevent reoccurence by prioritising rigorous inspections and adherence to safety protocols, especially for hazardous goods.

“Container xChange’s platform facilitates communication and collaboration between container traders and leasing companies worldwide, helping to coordinate responses and find solutions quickly. Our network can help users secure containers from alternative sources to manage inventory and avoid delays,” said Adrian Degode, customer success & operations lead, Container xChange.

“Our comprehensive coverage includes protection for both total and constructive total loss, general average and more, ensuring that container traders and leasing companies can mitigate financial impacts and maintain operational stability.”

As of 12 August, the terminal has gradually begun resuming normal operations.