· A recent increase of COVID-19 cases has been plaguing eastern China and forced a two-stage lock down to be announced in Shanghai on Sunday. This comes after a similar lock down in Shenzhen. The shut-down is expected to remain in effect until testing can be completed on the approximate 26 million residents. As a result of this large-scale closure delays in cargo movement should be expected despite the port remaining open at this time. Warehouse and depots are closed, and trucking volume is severely limited. Resulting in very little container movement currently.
· In 2021 the Shanghai port managed 47 million of the worlds TEU volume, so it is clear this shut down will likely impact supply chains throughout the world in the weeks ahead. The total scale of this impact will be unclear until later however officials are warning this will place an additional complication to a continuing supply chain crisis felt around the world.
· The length of time the Shanghai port will remain closed is not known, however they are planning to test the residents in key areas to allow the reopening of bridges and access points as soon as possible.
Wednesday March 30, 2022
Comments