Go to News

China port delays continue

The strict confinement of Shanghai, China due to a resurgence of covid-19 has increased the pressure on global supply chains.
During the course of April, Shanghai has been extending restrictions in many places in the city, which is the financial center of China. In fact, the port of Shanghai had already suffered major delays. So expanding measures against covid-19 may have complicated congestion and further increased already high transport costs, according to experts, since although the authorities have reopened the western part of Shanghai after nine days of confinement in neighborhoods in the eastern part with positive cases, the economic impact will be reflected in the near future.

Effects of the confinement in Shanghai
These restrictions have caused significant delays in the port, located in the eastern part of the city, which was already congested. It is the busiest container port in the world.
It is still not clear what impact the confinement will have on the accumulation of ships in the port, for which the effect of the repercussions has been planned.
The Port Group Shanghai International, which runs the port, said last month they would implement a "closed-loop system," which requires employees to stay in specific areas and adhere to certain protocols to prevent the spread of the coronavirus.
Sin However, due to travel restrictions, long waits at checkpoints, testing requirements and possible quarantine upon return, many truckers have struggled to get cargo containers to the port on time, according to the state media outlet The Paper.

The perspective of the impact on global logistics
The congestion in Shanghai also implies an impact on the shipping times of consumers and companies around the world, in a domino effect in budgets and the economy. While not a cause for alarm as Europe has extended support to ease the pressure on the Shanghai port situation, it is important to consider for the coming weeks as the situation continues.