According to Bloomberg News, congestion in the main ports like Hong Kong and Shenzhen are experiencing congestion due to the coronavirus lockdowns, and the level of congestion has reached a peak in the last five months, causing delays in the goods that are to be delivered in the United States during this summer season.
As many as 174 vessels are anchored or are being loaded off the hubs of South China, which is the largest since October 21st, at a time when the area was battling with the after-effects of Typhoon Kompasu. A similar queue of ships is also growing in Shanghai.
According to the director, Ryan Closser, at the Four Kites, which is a provider for supply-chain information, Shenzhen, in terms of being busy, is the second busiest port which is next to Shanghai, so he states that it is being expected that the volume shift is likely to take place in the other ports within China. He also said that perhaps a few more weeks of the shutdown might not cause considerable disruption, but the after-effects will be greater if the area remains shut for a longer period.
Congestion in March
Bloomberg News reports that coronavirus lockdowns in China have led to increased container ship counts at many prime hubs, just as vessels coming in from the United States are arriving one after the other for loading.
The delays have resulted since China has imposed lockdowns again and the most stringent of all restrictions ever since there was an outbreak two years ago. However, Shenzhen, a technology hub, is lifting the lockdown and has instructed the factories and truckers to participate in the virus’s mass testing procedure.
In Shanghai, the rate of infection is still on the rise, triggering concerns that the measures to battle the virus might impact the transportation of goods to the largest port in the world. As revealed by CMA CGM SA, the shipping carrier, in an advisory to the customers, congestion and more extended waiting periods are being seen at Shekou container and Shenzhen Yantian terminals Tuesday.
Bloomberg News reports that the lockdowns have resulted when the timing is not congenial as the customers in the United States are witnessing congestion of container ship ease a little in Los Angeles and Long Beach on the West Coast.
The Trans-Pacific delays have moved to Asia, with China seeing 14% more vessels than the median count from April 2021. Ships in the United States are less than the median by 6.2%.
