Drewry - Shanghai lockdown sees fewer vessel calls… and stores up future problems

Thursday, May 19, 2022

SOURCE: DREWRY

17th May 2022


Drewry consultants warn that the latest disruption of the global container system will see things worsen for BCOs before a partial improvement.

 

The Chinese lockdowns are hitting a global container distribution system that is already severely stressed and facing reduced capacity due to pervasive congestion. A positive reading of this situation could be that the reduction in volumes will speed up the normalisation of liner network performance and port productivity. Indeed, port congestion is easing in the US and Europe.

In Shanghai, where lockdowns started in mid-March, probably the most immediate impact was on road hauliers who found themselves having to quarantine 14 days before being allowed to exit the 'infected area' and return to the port's hinterland. Obviously, this added significant cost to inbound containers that had already landed at the terminal and could not be evacuated. Other imports, as well as most export flows, were diverted to neighbouring ports like Ningbo and even Qingdao. Unfortunately, these ports were already congested themselves prior to this additional cargo influx.


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