Maritime News |Port Strategy
Congestion at the world’s busiest container port is costing an estimated US$4.5 billion a week in lost trade, according to analysis by risk management organisation, Russell Group.
Further analysis over 12 – 19 January 2022 shows that trade worth US$635 million from Shanghai, China to the United States is currently under threat, as Covid restrictions continue to wreak havoc on supply chains. Vessels are over a week behind schedule as major Chinese ports including Ningbo and Tianjin lock down in response to a surge in cases caused by the Omicron variant.
The Port of Shanghai is the world’s busiest container port Photo: wikimedia
“Our new analysis from the ALPS Scenario Factory shows the precariousness of global trade,” said Suki Basi, Russell Group managing director.
“In this climate, a lockdown in a major port can have a knock-on effect on another port, in this case Shanghai, which is unable to cope with demand, resulting in delays that disrupt organisations and consumers alike.”
Shanghai is experiencing a rise in Covid cases but the authorities have largely contained the issue to a restricted area rather than enforcing a lockdown here and across further major Chinese cities.
Imports are under threat too as more than US$559 million dollars’ worth of ICBs that are normally imported into Shanghai are also being delayed.
Source: Port Strategy
Comments are closed.