Potential Backlogs Ahead For Shanghai

The Covid situation has improved in Shanghai and Chinese officials remain hopeful of an early June end to lockdowns. However, this may well cause supply chain issues as Shanghai swings into operation.

While the eight-week lockdown has been operational, export output has been down around 60% in the region, with industry experts now estimating that up to 250,000 TEU of export cargo was not shipped from Shanghai during that time.

Vessels were simply not calling at the port and diverting elsewhere due to the lack of cargo, and in some cases voyages were cancelled altogether.

Concerns are now mounting that when Shanghai lockdowns are lifted, the world’s busiest port will be flooded with additional volume that will coincide with the traditional peak season demand. If this is the case, we could see the industry temporarily returning to the low capacity issues that have wreaked havoc with global supply chains.

The Jenkar team will be monitoring developments closely. If you would like to know more on the above, or find out about Jenkar’s extensive range of Asia logistics solutions, then please do not hesitate to contact us.