Lockdown in Shanghai: Congestion is spreading – Fares are rising

By Anastasia Vamvaka

Changing the route of goods to avoid the extensive lockdown in Shanghai, where daily confirmed COVID cases exceed 17,000 – a record this week – is becoming more difficult and expensive as warehouses in other Chinese cities are overcrowded, logistics companies and carriers warn. .

The logistics challenges for shipping and air transportation in Shanghai are extreme. Most warehouses in the city are closed. The limited access of trucks to the terminals of Shanghai Port is causing the accumulation of containers and the slowdown of ship transports.

Mediterranean Shipping Co., the world’s largest container shipping company, said on Thursday it would start unloading refrigeration containers at other ports because there are no power plugs available for connection in Shanghai. “If the situation does not improve soon, you may need to cancel the trip and let us know where your container can be picked up,” MSC said in a customer alert.

Several companies have announced that they will bypass the mooring in Shanghai due to traffic restrictions, which will intensify congestion at terminals once the restrictions are lifted.

The congestion is spreading

Meanwhile, terminals in other ports, such as Ningbo Port, are also filling up with containers and facing equipment shortages as more goods are diverted from Shanghai, carriers say. As a result, Ningbo fares are rising.

AIT Worldwide, based in Itasca, Illinois, informed customers that cargo terminals at other airports were now reporting their own delays with Shanghai Pudong International Airport virtually closed.

In Zhengzhou, for example, incoming and outgoing air shipments may take up to seven days to pass through a queue and another three to four days to process. Companies also redirect cargo to Wuhan, Hangzhou and of Nanchang.

International passenger and freight airlines responded by canceling most flights to and from Shanghai Pudong Airport. Delta Air Lines, for example, said this week that it would not handle cargo there until at least April 18.

AP Moller-Maersk gives priority to the air

AP Moller-Maersk on Friday renamed its Star Air subsidiary Maersk Air Cargo as the Danish shipping container giant prioritizes integrated logistics offers and the sale of air freight services directly to customers with a single brand.

The reorganization is Maersk’s latest step in expanding its air cargo business. In November, it agreed to acquire German transport company Senator International for $ 644 million. The main activity of the Senator is the management of air freight for cargo owners. The market, which is expected to be completed in the first half of the year, will double Maersk’s air cargo volume.