Shenzhen’s Yantian Port, a critical global shipping hub, experienced significant congestion in the days leading up to the 2024 Lunar New Year holiday. Exporters rushed to ship goods ahead of the holiday and potential US tariffs on Chinese imports, contributing to increased wait times and higher shipping costs.
Yantian Port, responsible for a third of Guangdong’s international trade and a quarter of China’s exports to the United States, attempted to mitigate the congestion by increasing its daily container quota by 15% to 15,000 units between January 20th and 28th. However, this proved insufficient to alleviate the backlog.
Truck drivers reported significant delays, with wait times to transport containers quadrupling compared to normal operations. One driver described a two-hour wait to deliver a container to a port yard, while another trucking company reported a driver being stuck in the port area for over 24 hours. The limited container quota at the port, coupled with limited space at container yards, exacerbated the congestion caused by the pre-holiday rush.
The looming threat of new US tariffs on Chinese goods further fueled the rush to export. Former US President Donald Trump had discussed a potential 10% tariff on Chinese imports, with a possible decision deadline of February 1st. While the Chinese Ministry of Commerce expressed willingness to cooperate with the US on trade relations, the uncertainty surrounding potential tariffs prompted exporters to expedite shipments.
This preemptive action by Chinese factories and US buyers, including frontloading shipments and building up inventories, had already contributed to a surge in China’s exports to the US in December. In 2024, Yantian Port handled a record 17.365 million standard containers, a nearly 7% year-on-year increase, reflecting the broader growth in Shenzhen’s exports.
The port congestion resulted in a sharp increase in trucking fees, impacting exporters’ profits. Fees from Shenzhen’s Fuyong logistics hub to Yantian Port more than doubled, rising from 1,000 yuan to over 2,500 yuan ($345). In addition to higher trucking fees, exporters also faced potential container drop-off fees exceeding 1,000 yuan due to the congestion.
Some truck drivers directly attributed the congestion to the threat of US tariffs, questioning why factories would rush shipments before the Lunar New Year holiday if not for the impending trade uncertainties.
The congestion at Yantian Port highlights the significant impact of trade tensions and holiday schedules on global supply chains. The pre-holiday rush, combined with anxieties surrounding potential tariffs, created a perfect storm of factors that led to significant delays and increased costs for exporters. This situation underscores the interconnectedness of global trade and the vulnerability of supply chains to external pressures.
