COVID disrupts shipping in China | congestion Shanghai

COVID has once again disrupted shipping in Chinese ports. Many ships choose to sail to Shanghai, the largest container port in the world, in order to avoid COVID delays in other ports. But Shanghai is also experiencing increasing congestion as a result. Shipping schedules have been delayed by about a week. In time, this will also have an impact on European ports, which are also already overloaded.

In the nearby port of Ningbo, several cargo services have been suspended due to corona contamination. Ships are also being diverted to Xiamen to the south, shipping data show. This is causing new problems in the supply chain that was already under pressure of COVID-19.

An increasing number of Chinese cities are experiencing COVID outbreaks, leading to the imposition of strict measures. This is also This is also causing disruptions in the production process. Car manufacturer Toyota has already shut down a production site it has in partnership with China’s FAW. Other companies seem to be following that lead as well.

The rigorous testing of workers and truck drivers in the run-up to the New Year’s break at the end of this month is putting further strain on already overburdened supply chains. China in fact has strict quarantine rules for people who test positive for corona. This prevents them from going to work.

In Shenzhen, the technological center in the south of the country, the testing policy has led to a queue of ships forming at the port. One of the ports terminals has imposed restrictions on accepting goods. Containers are now not allowed to arrive until three days before ships are scheduled to arrive.

In the northern Chinese city of Tianjin, workers are required to be tested for corona to control the spread of the virus. This takes at least half a day. The capacity of freight transport is about 50 percent of the normal level. Drivers are tested daily anyway if they want to enter the port area. The virus has now also surfaced at the port of Dalian.

Capital Beijing, where the Olympic Games are scheduled to start in a few weeks, is only 30 minutes by train from Tianjin and a few hours from Dalian. People there are still encouraged to celebrate Chinese New Year mostly at home. The question is whether even stricter rules will apply.