Ningbo Trucker Strike Update

As an update to our notification from yesterday, the Journal of Commerce has reported this morning that some carriers are starting to divert vessels to Shanghai away from Ningbo due to the continued backlog and congestion caused by the ongoing truckers’ strike. Trucks are blocking access to the terminals as well as container depots as warehouses are overfilled with cargo. With the strike continuing to escalate and likely last into the weekend conditions at the terminals in Ningbo are likely to worsen.  The expected rerouting of containers into Shanghai to avoid the strike in Ningbo will also create further gridlock at the terminals there and exacerbate ongoing vessel and container shortages.

Earlier this week, over 100 truck owners went on strike at Ningbo Beilun port.  The key focal point of the strike is trucking freight rates.  Truckers claim rates, which were set by Ningbo Port,  have been stagnant for 8 years and that an increase is necessary due to doubling of diesel prices during this time.  Officials from the Ningbo Container Transport Association formulated a new rate, increasing previous rates by 12%, but the protest began before news could be announced.  As the protest subsided, it appeared all was well.

However, tensions are still high and the protest has now become violent.  Drivers are campaigning for higher pay, and now over 7,000 drivers have joined in.  Trucks who continue to handle work have been damaged and police, who have tried to intervene, have been attacked.

We will continue to monitor the situation and advise you of any important updates.