More Supply Chain Disruption as Typhoon Chanthu Approaches China


Another typhoon is heading towards China’s southeast coast, prompting another round of flight cancellations and port disruption in Shanghai and Ningbo.

Typhoon Chanthu is expected to make landfall  in the Zhenjiang Province later today.  The storm, with average sustained winds of 86 mph, was downgraded from a super typhoon to a strong typhoon after narrowly missing Taiwan on Sunday.  While Chanthu is expected to weaken as it approaches China’s east coast, gale-force winds, heavy rain, and flooding are expected along some areas of southeastern Jiangsu province, Shanghai, and northeastern Zhenjiang.

According to Mainfreight, all container terminals on the southeast coast, including Shanghai and Ningbo, have been closed until further notice, and warnings have been issued to vessels in the area to adjust navigation plans and leave typhoon-affected waters.  Port operations in both Shanghai and Ningbo had only recently returned to full capacity following temporary closures due to Typhoon In-Fa in late July and  COVID-19  lockdowns in August.

All flights leaving Shanghai, which has already suffered from reduced handling capacity due to COVID restrictions, Ningbo, and Hangzhou airports have also been cancelled.

Rail service has also been suspended in several cities across the region.

The temporary closure of the key export hubs is expected to further slow global supply chains, which are already stretched thin ahead of the holiday season, and could push freight prices higher.