According to reports, freight is having to be rerouted around Shanghai due to the extended lockdown, resulting in higher costs and greater difficulties getting cargo from point A to point B.
Cargo facilities in other Chinese cities that are having to accommodate the changes are fast becoming overloaded, which is causing a ripple effect throughout the logistics sector.
According to American Shipper (Freight Waves), the supply chain problems that have developed throughout China as a result of the Shanghai lockdown are now extreme. More than 90 percent of truck capacity is currently out of service, and those trucks that are still in service face problems getting in and out of the city without a special permit.
The permits currently available are only valid for 24 hours at a time and only work for specific, pre-set routes.
“Even with this arranged, it is possible for booked trucks to be commandeered by the government to transport aid supplies,” announced Seko Logistics in an update to its clients.
Most warehouse spaces in Shanghai are also closed, while Pactl, one of the largest airport cargo terminal operators in the world, is stuck with “skeleton operations.”
“Limited truck access to Shanghai port terminals is causing shipping containers to pile up and slowing ship transfers,” American Shipper explains.
“Seko said its team in Shanghai has seen an 80 percent decrease in container pickups from outside the lockdown area because of driver shortages and restrictions, with drivers requiring a special pass and negative COVID test results.”
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Mediterranean Shipping Co., the world’s largest container vessel operator, is also now having to offload refrigerated containers at other ports outside of Shanghai because there are currently no available power plugs in the city.
Unless customers specifically request a change in destination within seven days of the time it is needed, reefers are being discharged at intermediate or alternate ports of the carrier’s choosing.
Additional freight charges for transshipment, storage, equipment rental and electrical connections are also being applied in such scenarios.
“If the situation does not improve soon, it may be necessary to abandon the voyage and advise you from where your container may be collected,” said MSC in a notice to its customers.
Another carrier called Ocean Network Express said overcrowding at two major container terminals in Shanghai could prevent its vessels from discharging their reefer boxes. Other ocean carriers are skipping Shanghai entirely due to these problems.
At the Port of Ningbo, which is taking some of the rerouted traffic, congestion is building. Consequently, freight rates there are spiking, adding more costs to an already inflationary situation for the supply chain.
Beyond the Port of Ningbo, many other cargo terminals at other ports are experiencing delays due to overcrowding. Airports are also suffering, including Shanghai Pudong International Airport, which is now completely out of commission.
Those freight loads that have successfully made it through the bottlenecks are experiencing delays in processing, some of which are being caused by new “disinfection” requirements for the Fauci Flu.
Unfortunately, the situation is expected to worsen as other cities in China go into lockdown due to rising “cases” of the Wuhan Disease. As this continues, increasingly more ports will suffer, resulting in more and more problems for the supply chain.
Seeing as how a bulk of the world’s consumer goods come from China, everyone will be affected by what is currently transpiring in the name of “public health.” So brace yourself: things are about to get even uglier.
The latest news about how the Shanghai lockdown is driving the supply chain into further ruin can be found at Collapse.news.