A major explosion has occurred on a Yang Ming boxship while berthed at the port of Ningbo-Zhoushan in China in another incident that raises serious safety concerns.
"This type of incident should never happen and is another example of how one failure in ocean container shipping can have catastrophic consequences," says Peter Sand, Xenetal chief analyst.
Sand pointed out that if this explosion had happened at sea rather than at a berth in a port, the crew and ship would have been in even more perilous danger.
"An investigation will take place and the industry must learn from it. Container ships are used to transport hazardous and potentially explosive cargo, so it is of paramount importance that robust safety measures are in place," he noted.
The explosion in Ningbo follows other major incidents in 2024, including the collapse of Baltimore Bridge in March and an electrical fire onboard Maersk Frankfurt during its maiden voyage through the Arabian Sea last month.
Ningbo-Zhoushan is the second most important container shipping port in China behind Shanghai, handling more than 100,000 TEUs each day.
Xeneta data shows average spot rates on the major fronthaul trade from Ningbo to the United States West Coast increased by 146% between 30 April and 1 July amid the impact of the ongoing conflict in the Red Sea region on container shipping.
Average spot rates on the trade to the US West Coast have since softened, falling by 18% to stand at US$6,510 per FEU on 9 August.
Sand does not believe the explosion on YM Mobility will have a significant impact on the market.
"Ningbo-Zhoushan is a hugely important and well-connected port in the Far East, second only to Shanghai in China and on par with Singapore. It is a critical hub for container shipping and this incident is deeply concerning from a safety perspective, but it is unlikely it will have a significant impact on the market," he stated.
