HONG KONG — CNN Business today reported that China’s zero-COVID policy has been affecting port congestion around Shanghai with spillover effects occurring in other ports as well. Analysts predict global shipping will be plagued through the summer months as well.
Citing data from Project44, a global supply chain tracking consulting firm, indicated that shipment delays between China and the U.S. have quadrupled since March. By the end of April, ships from China to Seattle were taking four days longer to arrive, up from three days in March.
Trucking to and from Chinese ports is being disrupted due to COVID quarantine and testing restrictions. Josh Brazil, director of supply chain data insights at Project44 said, delays “will continue into the summer months” due to shipment delays even if companies are able to quickly ramp up normal operations in Shanghai.
Almost 20% of container vessels worldwide are waiting outside congested ports according to Windward, a global maritime data firm. Windward estimates that one-fourth of those ships are waiting outside of Chinese ports.
Chinese ports include seven of the world’s top 10 largest ports. The port of Ningbo-Zhoushan, which is about 100 miles from Shanghai and is the world’s third largest port, is experiencing increased delays, according to Lloyd’s List Intelligence.
With a domino-like affect, shipping delays have been affecting manufacturers who are waiting longer to receive raw materials for production. Inventories of finished goods are also increasing due to the trucking issues within the country.
Related stories:
Jean Marie Layton is senior editor for upholstery at Furniture Today. A design and furniture aficionado, she has worked as a writer/editor in industry and non-profits, in academic administration and in retail furniture sales. She pursued a master’s degree in the history of design at Parsons/Cooper-Hewitt and has a BA in history from Mount Holyoke College and an MA in liberal arts from Stanford University. Reach out to Jean Marie with your story ideas, tips and more at [email protected]
