In the vortex of lockdowns of Chinese ports the supply chain

of Anastasia Vamvaka

The lockdown in Shanghai has been extended indefinitely, a move that creates further uncertainty in the Chinese supply chains but also in the global market for new aggravating delays in freight.

Global supply pressures, which began to ease in early 2022, are deteriorating again as problems are exacerbated by the war in Ukraine and lockdowns in China, threatening to slow growth throughout the global economy.

Lloyd’s Intelligence data show that on April 4, 140 ships carrying containers were waiting outside the ports of Shanghai and nearby Ningbo.

Almost all of Shanghai is now in lockdown, with most residents unable to leave their homes, even for food, while some businesses, such as container piers, are allowed to operate in conditions where workers sleep in the workplace. .

As a first management measure, carriers have largely focused on reducing truck capacity and closing factories and warehouses, which has led ships to avoid Shanghai for the ports of Ningbo, Qingdao and Tianjin, which also had and these problems of delays.

Commenting on the developments, Maersk said that the lockdown in Shanghai could cause transportation delays and higher costs.

“Trucking in and out of Shanghai will be severely affected by 30% due to the complete blockade of Shanghai’s Pudong and Puxi districts,” Maersk told customers on Monday. Shanghai is divided into two parts, the Pudong and the Puxi, by the Huangpu River.

“Consequently, there will be longer delivery times and a possible increase in shipping costs,” he added.

Reuters reported that Tesla’s plant in Shanghai did not start operating yesterday as planned. Over the weekend, CEO Elon Musk wrote on Twitter that the company had seen an “extremely difficult quarter due to supply chain disruptions.”