Shanghai port congestion surges ahead of lockdown
Vessel queues at the port of Shanghai climbed well above seasonal averages in March, creating the potential for prolonged congestion after China's largest city yesterday entered a staggered lockdown in response to spiking Covid-19 cases.
Over the past month, the number of ships waiting to load or discharge in Shanghai increased by roughly five fold to around 300, according to research firm VesselsValue. At the same time last year, roughly 100 vessels were waiting in the port of Shanghai, while the 2017-2021 average for this time of year is around 75 vessels.
The bloated vessel queues have primarily been created by dry bulkers and tankers, each of which account for roughly one-third of the total number of vessels waiting in the port. If the lockdowns create logistical problems that prolong the congestion, it would provide upward pressure to freight rates by tightening tonnage supply.
Nearly all of the oil tankers waiting in the port are smaller-sized vessels involved almost exclusively in intra-Asia shipments, according to Vortexa data.
The government of Shanghai imposed a full lockdown of the Pudong district on the east side of the city's Yangpu river to conduct mass testing for four days starting 28 March. A lockdown of the city's Puxi district, on the west bank, will follow during 1-4 April. Residents are restricted to their homes, and public transport services have been halted.
The lockdown follows a spike in the number of total Covid-19 cases, including asymptomatic ones, to over 12,000 in the week ending 25 March. But it comes as a shock to residents, because, as recently as 26 March, city authorities had insisted that a full lockdown would not be necessary due to Shanghai's economic significance.
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