Shanghai port in danger of unprecedented congestion of ships and goods

Supply chain expert David Leaney warns that, Shanghai port Excessive pressure on cargo traffic will likely cause delivery delays throughout the rest of 2022.

Blockade order to prevent COVID-19 for the city Shanghai Along with new quarantine regulations, the number of ships and goods has never been jammed. In addition, costs are also pushed up. This is believed to be a major blow to the global supply chain, which has been reeling due to the COVID-19 pandemic and Russia-Ukraine tensions.

The Port of Shanghai is the busiest container port in the world. According to statistics, each month about 2,000 ships enter and exit Shanghai port, handling four times the volume of goods passing through the port of Los Angeles (USA), according to data from the port authorities of both cities. city ​​in 2021.

However, now with the new quarantine regulations, Shanghai port is overloaded and faces an unprecedented volume of ships and cargo congestion, causing significant delays and chaos in shipping. goods worldwide.

Cargo operations at the international container port in Shanghai, China. (Photo: Reuters)

Digital satellite images recorded at this port located on the east coast of China show that a large number of ships are “stuck” here.

Speaking on the Today Show on April 30, Mr. Leaney said: “This is affecting a lot of different items. Delays can last for weeks or months. If you’re ordering something of great value, or especially something with a microchip attached. , these wait times could be even longer, as they will have separate supply chain issues”.

According to Maersk, one of the world’s largest container shipping companies, the blockade of Shanghai could lead to congestion and drive up costs.

The company stated: “The freight service to and from Shanghai will be affected by up to 30% as the city’s Pudong and Puxi areas, separated by the Huangpu River, are both completely blocked off. , delivery time and shipping costs will increase”.

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