Despite signs of recovery, Shanghai port congestion to continue
Chinaās government has eased Covid related restrictions on the port of Shanghai, and there are some signs of a recovery. But the congestionās ripple effect continues around the world, as labor and infrastructure restrictions still plague the Chinese port.
Ā The Global Times reported that Shanghaiās ācontainer throughput in April [was] recovering to 80 percent of last yearās levelsā.
In an interview, Jeremy Nixon, CEO of Ocean Network Express Pte., recognised that āevery government is doing their best to address the issue, but labor [...] and infrastructure shortages still existā.Ā
āWeāre putting more ships into service, but we canāt magic up more when weāre running outā, he added.Ā
This sentiment is echoed in a report by Bloomberg, which concluded that the easing of Shanghaiās lockdown as a result of a drop in COVID-19 cases wonāt necessarily bring immediate relief to the global shipping crisis.Ā
Chinaās Zero Covid Policy has affected supply chains, hampering both production and delivery. Last month, according to data from Windward, a fifth of all the worldās containerships were stuck in port congestion.
In a statement, the Port of Oakland described how disruption in Shanghai, home to the worldās largest port and major transportation hub, had also causedĀ āa ripple effect on ocean carrier schedulingā across the globe.
From Los Angeles to Hamburg, scores of ships have been waiting for weeks to berth at ports. In Vancouver, the wait is three weeks. Port of Oakland cargo is down by 7 percent on the same time last year, with imports and exports falling 17 and 18 percent, respectively.
There is currently a queue of 130 vessels waiting off Shanghaiās port, with the number of container ships spotted in the Shanghai and Ningbo-Zhoushan region still 11 percent above the last yearās median.Ā
Furthermore, Shenzhen and Hong Kong hit a seven-month high with 184 vessels waiting on Tuesday, in comparison to just 95 this time last year. Planes, trains and trucks have also experienced similar problems.Ā