260,000 TEU of unshipped cargo waiting at Shanghai
New analysis from Maritime consultants Drewry has showed that Covid lockdowns have caused a huge backlog of cargo at the port of Shanghai, with an estimated size of 260,000 TEU.
If the estimates are accurate the backlog would be enough to fill dozens of container ships.
The greatest uncertainty is when China’s lockdown restrictions will end, and the ‘bullwhip’ impact this will have across the supply chain." Drewry's report explained.
“Liner shipping schedules will also take at least one rotation to normalise. This would mean that, even if lockdowns were to end today, the predictability and capacity of the container distribution system would be jeopardised during summer peak season.”
Many within the industry had previously hoped that the backlog in Shanghai would be able to resolve itself before the peak season started, but it is now increasingly looking like 2022's peak season will see even more disruption than 2021's.