Global supply chains have been strained for months due to the Covid-19 pandemic and Russia’s invasion of Ukraine.Īlthough the Shanghai port remains operational, activities such as warehousing and staffing will be affected, causing delays, he said, adding that cross-country transportationmay be hindered too.
“The citywide lockdown in Shanghai is a setback to global supply chains already stretched by geopolitical tensions,” wrote Bansi Madhavani, senior economist for ANZ Research, in a report on Friday.
#CHINA PORT MAP DRIVERS#
However, due to the travel restrictions, extended waits at checkpoints, coronavirus test requirements, and potential quarantine upon return, many truck drivers are struggling to get the cargo containers delivered in and out of the port on time, according to state-controlled media outlet The Paper.Ĭongestion in Shanghai is bad news for consumers and companies around the world. Shanghai International Port Group, which runs the port, said last month that it would implement a “closed-loop system” that requires employees to stay in specific areas and adhere to certain protocols to prevent the spread of coronavirus. The city’s government, meanwhile, has said that freight operations will remain normal under the lockdown. “Consequently, there will be longer delivery time and a possible rise in transport costs,” it added. Shanghai is separated into two parts, Pudong and Puxi, by the Huangpu River.
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“Trucking service in and out Shanghai will be severely impacted by 30% due to a full lockdown on Shanghai’s Pudong and Puxi areas,” Maersk said in an advisory to clients on Monday. Maersk, one of the world’s largest container shipping companies, also said the Shanghai lockdown can cause transportation delays and higher costs. China OUT (Photo by AFP) / China OUT (Photo by STR/AFP via Getty Images) AFP/Getty ImagesĪ Covid-19 spike like the one in China is unlikely in the US, experts say. But it suggested that supply chain managers and analysts around the world “start planning for knock on effects.”Ī resident undergoes a nucleic acid test for the Covid-19 coronavirus in Shenyang, in China's northeastern Liaoning province on March 29, 2022. It remains unclear what impact the lockdown will have on the port’s vessel backlog, the firm said. However, the recent increase is far higher than both last year and normal seasonal levels,” the firm said in a statement on Tuesday. “Congestion at Shanghai usually worsens at this time of year. VesselsValue, a global shipping data provider, said the number of ships waiting to load or discharge at Shanghai’s port had skyrocketed to more than 300 this week, a near five fold increase in the past two and half weeks. It is the world’s busiest container port, handling more than four times the volume seen at the Port of Los Angeles in 2021, according to data from both cities’ port authorities. These restrictions have caused major delays at Shanghai port, which is in the eastern part of the city and was already congested. Shanghai to lock down each half of city for mass Covid-19 testing REUTERS/Aly Song TPX IMAGES OF THE DAY ALY SONG/REUTERS A delivery worker passes food to a woman over the barriers of an area under lockdown amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China March 23, 2022.
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