The expansion of deepwater terminals at Yangshan islands in Shanghai is getting into full swing, with the city’s government pledging to build world-class infrastructure and spur growth as part of its latest effort to shore up confidence in the city’s foreign trade.

Zhang Xiaohong, a Shanghai vice mayor, told the North Bund Summit, a shipping industry conference, on Friday that new port facilities under construction will gain international prominence and effectively buoy China’s trade with foreign partners.

“Construction [of terminals] at the northern side of Xiao Yangshan has gone into full swing,” he said. “When they are complete, the waterway from Yangtze River to the ocean can be better utilised to bolster Shanghai’s status as the world’s shipping hub.”

Zhang was referring to the 51.3 billion yuan (US$7 billion) harbour project that will eventually handle 11.3 million 20-foot-equivalent units (teus), nearly a quarter of Shanghai’s total container throughput last year.

Construction of the deep water port began in 2002 following China’s entry into the World Trade Organization, a watershed event that resulted in thriving trade emanating from the Yangtze River Delta around Shanghai.

Shanghai International Port Group, the state-owned operator of terminals in the city, announced last September that it would start building the new terminals the following month.

Extreme weather, particularly typhoons and hurricanes in North Asia and the United States, resulted in congestion building up in major ports.

Linerlytica’s report today stated that vessel queues went up in the week that ended on 10 September.

North Asia, particularly, had been battered by heavy rain amid the typhoon season, with Super Typhoon Saola, Typhoon Khanun and Typhoon Haikui hitting China, Japan, South Korea and Taiwan.

Linerlytica estimates that around 400,000 TEUs were in the vessel queue in ports in each region of North Asia and North America, where Florida state was lashed by Hurricane Idalia.

Ships had to wait up to three days to berth, due to the disruptions to port operations in Hong Kong, Shenzhen, Kaohsiung, Ningbo and Busan.

However, the congestion has already started to clear in North Asia by the end of last week with terminals and gate operations all reported to be back to normal.

In North America, there has been a build up across the East Coast with wait times of up to four days with Savannah, Norfolk, Baltimore and Charleston currently the worst hit.

However, with shipping supply exceeding demand, the bottlenecks have not halted the downward slide in freight rates. On 8 September, the Shanghai Containerised Freight Index (SCFI) fell below the 1,000 mark again, losing all gains in the previous seven weeks.

Taiwan’s Maritime Port Bureau has warned Norwegian marine insurer Hydor that it could be blacklisted, alleging that the latter has failed to help facilitate the clean-up resulting from the sinking of container ship Angel on 21 July.

The vessel was loaded with 1,349 containers, and when it sank outside Kaohsiung port, 776 boxes were submerged with the ship and 160 containers sank after floating. In all, 216 containers were promptly recovered and taken to various Taiwanese ports, while 87 boxes sank while being towed. Another 110 containers were beached near Kaohisung. Retrieving the drifting containers was hampered by Typhoon Doksuri.

MPB emphasized that after Angel sank, Taiwan International Ports Corporation, Taiwan Coast Guard, Ocean Conservation Administration, and the Fisheries Agency, were fully involved in the response processes.

The bureau alleged that Hydor did not come forward to deal with the fallout, which affected fishermen’s livelihoods as the containers drifted to other parts of Taiwan, presenting navigational hazards.

MPB claimed that after a stern request, Hydor’s representative participated in an emergency meeting, but asserted that it did not provide any valid insurance cover to Angel.

Container News’ checks of Hydor’s website did not turn up Angel among the insurer’s covered ships.

MPB pointed out that there was a need to clarify Hydor’s relationship with the sunken vessel, as well as its related obligations. In the meanwhile, the resulting oil slicks, drifting containers and fishermen’s monetary losses should be resolved.

With Hydor on the warning list, its insured vessels would need to have their coverage reviewed by Taiwanese authorities before being allowed into Taiwanese ports. Should Hydor be blacklisted, all its insured ships will be barred from Taiwan.

Mediterranean Shipping Co. (MSC Group) is reportedly moving close to striking a deal to pick up a minority stake in PSA International’s new terminal at India’s Nhava Sheva Port (JNPT).

PSA Mumbai, also known as Bharat Mumbai Container Terminals (BMCT), began Phase I operations in February 2019, with a capacity of 2.4 million TEUs annually. The Singapore-based company was awarded a 30-year concession for the public-private-partnership (PPP) project in 2014, involving a total investment of US$1 billion.

According to industry sources, MSC Group is eyeing a 26% stake in the terminal, the second phase of which is under construction and targeted for commissioning in early 2026.

“In return for the stake buy, MSC is expected to get dedicated access to a 400-metre berth in Phase II of BMCT’s capacity,” sources told Container News. “This means significant operational and commercial advantages for the carrier.”

The Geneva-based liner has a string of weekly calls at Nhava Sheva, which deploy some of the largest vessels in trades out of India. Most of MSC’s larger services currently call at DP World Nhava Sheva, while some have berthing windows at BMCT.

The PSA partnership will likely lead to concentration of MSC calls at BMCT. According to industry observers, exclusive berthing rights in a single berth could accommodate up to seven calls a week, making up about 1 million TEUs annually.

“Carriers that have long-term growth plans for India are increasingly looking at adequate terminal capacity in the North Western region where the supply-demand scenario is expected to remain tight in the mid-to-long term as the economy expands,” an analyst said.

BMCT’s every phase has been designed with three berths, featuring a quay length of 1,000 metres and sophisticated harbour equipment capable of handling 16,000 to 18,000 TEU capacity vessels.

The acquisition move, if it materialises, could heat up intra-port competition at Nhava Sheva, as CMA CGM Group recently won a 30-year concession to modernise and operate the port’s oldest box terminal under an equal-ownership joint venture with Mumbai-based JM Baxi Group.

Both MSC and CMA CGM already have established terminal partnerships with Adani Group's Mundra Port.

Additionally, Bollore Africa Logistics, which MSC acquired last year, owns 49% of Dakshin Bharat Gateway Terminal, the busiest container handler at India’s Tuticorin Port, also known as V.O. Chidambaranar.

PSA Mumbai has logged impressive throughput growth in recent years, racking up 1.71 million TEUs in fiscal 2022-23. The terminal already hosts more than 10 weekly scheduled containership sailings.

Nhava Sheva Port includes two box facilities operated by DP World and one by APM Terminals.

The Abu Dhabi-based facilitator of logistics, industry, and trade, AD Ports Group, signed a Memorandum of Understanding (MoU) with the China Machinery Engineering Group Corporation (CMEC GROUP), a state-owned key enterprise directly managed by the central government of China aimed at fostering infrastructure development on a global scale.

Under the agreement, the two entities will explore collaboration opportunities across various regions, with a focus on the Middle East, Central Asia, South Asia, South East Asia, East Asia, Africa, South America, and Europe.

the companies will cooperate in various sectors, including global industry and infrastructure development, financing, construction, operation, and maintenance, leveraging their respective strengths and expertise.

Additionally, the partnership will extend to global economic cities and free zone development, as well as international logistics.

Valid for three years, the MoU seeks to achieve mutual benefits and establish a long-term strategic cooperative relationship based on trust and shared resources, aiming to expand the global logistics market.