Shanghai Covid Outbreak Exacerbates Global Supply Chain Issues

Author Name: Emma Hau – Marketing Analyst at FreightAmigo | 8/4/2022

Shanghai’s daily Covid infections set a record for the sixth straight day on Thursday (7th), as citywide mass testing identified almost 20,000 cases in Shanghai.  The indefinite extension of Shanghai lockdown is causing significant slowdown of operations at the city’s major ports.

Shanghai is undergoing lockdown due to a new wave of Covid.  The lockdown and virus testing implies truckers cannot get to the docks to pick up boxes.  Limited trucking availability is therefore disrupting the clearance of import cargos.  Even when the port is under “normal operation status”, port operation is impeded in general.

EU Chamber of Commerce in China members estimated that Shanghai port volumes are down by about 40% week-on-week due to lockdown measures.

To minimize the impact from Shanghai lockdown, shippers and forwarders are shifting to ports in Ningbo and Xiamen, airports in Zhengzhou and Chongqing, which are close to Shanghai.

Lockdown measures were imposed on 28th March to curb Covid outbreak.  Until now, Shanghai has yet to give an indication of when lockdown measures will lift, fueling greater uncertainty for those involved in global supply chain.

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