Mixed reports about Chinese port operations are now pouring in. These reports are fueling concerns about the impact strict Shanghai lockdowns, made in an effort to decelerate the sudden influx of COVID-19 cases, could have on the global supply chain.
With the major city now shut down in its entirety despite confirming recent infection decreases, it now reports an increase in the number of ships waiting at the port. Recent reports released by CNN and VesselsValue confirmed the loading and unloading complications. The total number of ships awaiting check-in at the world’s largest port surpassed 300 last week, nearly five times more than the previous weeks.
"Congestion at Shanghai usually worsens at this time of year. However, the recent increase is far higher than both last year and normal seasonal levels," the firm said in a statement on Tuesday (April 5).
Following reports of port congestion in Shanghai, the Shanghai International Port Group (SIPG) released a statement contradicting what had been reported, noting that the port had not seen delays since February and that wait times were, on average, around 24 hours. The organization did note, however, that COVID-19 testing requirements for truckers was causing some issues.
The shutdowns intended to restrict Shanghai’s 26 million residents, one of 23 cities forming part of China’s zero-COVID policy, are set to expire Tuesday (April 5). According to a member of Shanghai's expert COVID-19 team, the closures are justified by the “large scale” infections found throughout the cities at recent mass testing sites.
"Containing the large-scale outbreak in our city is very important because, once infected people are put under control, we have blocked transmission," she said at a briefing.
Although Shanghai's international port remains open for business, the lockdown restrictions are impacting truckers, warehouses and other links in the supply chain. Some truckers are hesitant to enter Shanghai, afraid that they won't be allowed to leave. Oil prices have added onto the economic inconveniences, driving up the cost of trucking in China by as much as 10%.
China houses 28.7% of all global manufacturing output, compared to the U.S’s 16.8%, according to The American Prospect. Its extreme COVID-19 mitigation measures in 2020 and 2021 caused various disruptions related to the global supply chain and drove up the cost of many goods, with transporters struggling to move products from warehouses to ports.