China shipping: freight rates tumble as coronavirus controls slow export growth
- Container rates from Asia to Europe and the US West Coast have fallen by more than 20 per cent since the lock down of Shenzhen in March, according to Freightos
- Strict zero-Covid controls have slowed China’s export momentum in recent months, with cargo volumes from the world’s No 2 economy continuing to slide over May
High shipping rates that have plagued Chinese businesses over the past year have tumbled more than 20 per cent since March, as export growth in the world’s No 2 economy stagnates due to stringent lockdowns in Shanghai and other parts of the country.
Although daily coronavirus cases have dropped to one tenth of their peak level in Shanghai, and some factories have resumed production, restrictions in many parts of the city are tightening. Manufacturing and trucking capacity has been restrained and there has been a significant drop in the availability of goods and port output.
Shanghai Port, the world’s largest port in terms of container throughput and a major gateway for goods produced in nearby manufacturing hubs, has remained operational since the lockdown began six weeks ago, but export volume has been shifted to the nearby Port of Ningbo, said Xu, a shipping agent based in Jiangsu province who only gave his surname.
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“Our business in the first half this year was so much worse compared with last year, we can hope for a better second half,” Xu said.