China’s coronavirus lockdowns jam ports in Hong Kong and Shenzhen, risking further ‘chaos’ for supply chains
- Shenzhen and Hong Kong ports are seeing their worst delays in months, as coronavirus restrictions, including lockdowns, affect normal operations
- Lockdowns will delay container movement at southern Chinese ports, which will impact shipments to the US ahead of summer, analysts say
Congestion at ports in Shenzhen and Hong Kong reached an all time high this week as authorities implement stringent coronavirus restrictions to contain local outbreaks, posing a threat to shipments heading to the United States over summer, analysts said.
The latest round of lockdowns in mainland China has been a major setback to global supply chains, which have been slowly recovering from the initial impact of the virus that upended global trade and transport two years ago.
“Shippers must think ahead and prepare for the worst as port congestion worsens, freight rates shoot up and capacity deteriorates,” said Dr Johannes Schlingmeier, co-founder and CEO of Container xChange, an online marketplace for container logistics.
In the long term, this will create more chaos as rates climb higher, capacity tightens and shipments are delayed.
Although Shenzhen has been gradually lifting a week-long lockdown and its port has remained open, workers have been ordered to participate in mass testing, affecting productivity and increasing congestion.