Australian Goods Risk Being Delayed as China’s Lock-downs intensives with Shipping Ports Jammed
- Ship queues grow in China as Covid lock down take hold
- Congestion could delay goods heading to the Australia
Congestion in the key Chinese ports of Shenzhen, Shanghai and Hong Kong due to Covid-19 lock downs has risen to the highest level in five months, posing possible delays to goods heading to the Australia this winter.
There were approximately 174 vessels anchored or loading off the South China hubs, the largest number since Oct. 21, when the region dealt with the aftermath of Typhoon Kompasu.
Congestion and longer waiting times have been observed at Shanghai , Shenzhen’s Yantian and Shekou container terminals
Shenzhen is the second-busiest port next to Shanghai, so we will expect to see significant volume shift to the other ports within China.
We suspect that a couple more weeks of shutdown may not have a huge disruption, but the longer the area is shut down, the more of a ripple effect it will have.
The delays come as China has imposed the strictest Covid-19 controls since the initial outbreak two years ago. Technology hub Shenzhen is lifting a week-long lock-down after ordering factories to shutter and truckers to participate in mass testing for the virus.
The queue of ships is also growing at Shanghai as Infections in Shanghai are still on the rise, spurring concern that measures to combat the virus could affect the transport of goods to the world’s biggest port.
Although the Shanghai port remains operational, activities such as warehousing and staffing will be affected, causing delays, he said, adding that cross-country transportation may be hindered too & These restrictions may send freight rates soaring again.
The citywide lock-down in Shanghai is a setback to global supply chains already stretched by geopolitical tensions.
Congestion in Shanghai is bad news for consumers and companies around the world.