What does Shanghai (China) do to overcome difficulties in the transport sector?

It has been almost a month that Shanghai city has been under pressure blockade order Strict. In addition to affecting people’s daily life, imports and exports from China’s most populous city are also facing difficulties. Nearly a third of the cargo that was supposed to leave the port in Shanghai is stuck. Meanwhile, many boats are still anchored offshore due to lack of cargo to unload.

Lack of transportation, 40-50% reduction in truck volumes, difficulty accessing transport permits, staff, materials and goods to and from the city and beyond, are just some of the many challenges. that companies face. As a result, many companies here have been forced to turn to rail transport to ensure their goods can be exported.

Companies are currently using a model called “oceanic rail” to send containers to nearby rail hubs before they are delivered by truck to their destination port. The port of Lucao is the place to receive up to 90% of the volume of goods transported in this way.

Mr. Wang Mingwei, Permanent Director of Luchao Port Center, said: “Currently, transportation by container trucks and dump trucks is limited because of the blockade. Therefore, railway is an alternative solution in this area. urgent case. We estimate that this April, about 50,000 containers will be transported by the ocean railway.”

Port of Lucao therefore plays a very important role in connecting and stabilizing the global manufacturing supply chain, especially the auto industry.

“We quickly helped companies such as GM, Volkswagen and Tesla so that their products could be transported by rail at any time,” added Mr. Wang Mingwei.

In March alone, more than 17,000 cars were handled and transported at Lucao. However, the partners of Chinese manufacturers are especially concerned when goods have to go around like that to be able to leave the port. Because the price will certainly go up when it reaches the consumer. For example, Germany, according to news agency DW, almost a third of sea trade between Germany and China passes through Shanghai, so the company predicts that consumer goods will almost certainly be more expensive this summer.

Across the Atlantic, importers also forecast that US consumers will feel prices skyrocket this July after what’s happening in Shanghai. Commodity price hikes will take place in the second quarter after soaking up the effects of the stockpiling of goods at China’s ports.

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