Congestion at Shanghai port threatens international trade
The port is operating at 25% of its capacity and there is an additional problem with container trucking
The new coronavirus outbreak in China and the restrictive measures imposed by the government continue to collapse the port of Shanghai, one of the main hubs of international trade and the largest port in the world. One of the main effects worldwide is a supply crisis, as already happened in China in October 2020.
The port of Shanghai is still collapsed, there is no transport available to transport containers, and its activity remains limited to 25% due to the anti-covid-19 measures which have been in place for more than a month now. The consequences will be reflected all over the world, and the situation is in a climate of uncertainty as the authorities are not informing the time of extension of the measures.
“At the moment we are having problems with exports. Our containers are on ships at anchor waiting to be unloaded in the port of Shanghai, but the lack of personnel means that they cannot carry out the operation. More than 500 ships are waiting to be unloaded,” said Nuria Lacaci, general secretary of the Spanish Shippers’ Association (ACE) to Logística Profesional. Lacaci admitted: “The paralysis of the port will have a very negative effect on the global supply chain”.
According to a report published by ‘BBVA Research’, China’s economic outlook has changed in the face of the confinement of the city of Shanghai. Year-on-year growth in industrial production slowed to 5%, down from 7.5% the previous month.
Source: Logísitca profesional, EFE, BBVA and El Periódico.