- The key Chinese ports of Shenzhen and Hong Kong face congestion, which rose to the highest level in five months due to COVID-19 lockdowns. It could pose possible delays to goods heading to the U.S. this summer, reported Bloomberg.
- Ryan Closser, a director at FourKites, states, “Shenzhen is the second-busiest port next to Shanghai, so we will expect to see significant volume shift to the other ports within China. A couple more weeks of the shutdown may not have a huge disruption, but the longer the area is shut down, the more of a ripple effect it will have.”
- With infections in Shanghai still on the rise, measures to combat the virus could affect transporting goods to the world’s biggest port.
- Congestion and longer waiting times have been observed at Shenzhen’s Yantian and Shekou container terminals as of Tuesday, shipping carrier CMA CGM SA stated in an advisory to customers.
- Also Read: China-Europe Rail Lines, The Latest Supply-Chain Issue: Bloomberg
- With the U.S. seeing container-ship congestion ease in Los Angeles and Long Beach on the West Coast, the lockdowns in China have come at an inopportune time for consumers, Bloomberg notes.
- Trans-Pacific delays have shifted mainly to Asia, with China seeing 14% more vessels than a median count from April 2021. Ships in the U.S. are 6.2% less than the median.
- Photo by 46173 via Pixabay
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.