Shipping Companies to Use Alternative Ports as Tianjin Port Recovers

Shipping Companies to Use Alternative Ports as Tianjin Port RecoversTianjin Port ambitions to become the third busiest port by handling capacity are now gone due to the recent explosions that happened. A number of companies will likely use other northern ports as alternatives to Tianjin. China Port and Harbors Association executive vice president Chen Yingming sated that even with operations in Tianjin Port has returned to normal after last week’s explosions, the handling capacity will be reassigned to other major ports including Qingdao and Rizhao in Shandong and Dalian and Huludao in Liaoning.

One of the biggest concerns for the shipping and manufacturing enterprises are support facilities that was found in Tianjin Port were damaged in the accident. This has placed extra pressure on the local government and Tianjin Port Co to build the port as the biggest shipping center in North China in the span of four years. Tianjin Port use to have an annual capacity of 540 million metric tons of goods in 2015 and it began developing consultancy, shipping and finance services to compete with other international shipping hubs in Singapore and Hong Kong.

A supply chain management solution provider based in Copenhagen said that its early to say whether shipping operations in Tianjin will return to normal since most of the key facilities have been destroyed in the explosion. Although some shipping lines will accept bookings again, analysts are recommending customers to use Qingdao and Dalian as alternative ports until further notice.

Under the current global trade situation, overcapacity in all shipping lines made it difficult for shipping companies to pursue sustainable economic development and to avoid any risks they choose other ports to berth their ships.

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