China congestion continues despite easing lockdowns

Congestion at Chinese ports continues to worsen despite some Covid restrictions being lifted in Shenzhen last week.

Although factories were able to re-open in Shenzhen, the port has imposed restrictions on cargo exports in an attempt to control congestion.

"Most container freight stations in Shenzhen are not operating, or are very limited, due to a lack of staff." Said one local insider, adding that "officially it's business as usual, but reality is very different."

Restrictions on truckers continue to be a major source of disruption. Even if drivers do not have Covid and are not in a lockdown, they are still having to navigate testing and quarantine rules every time they move between cities and provinces.

Last week Maersk omitted 3 calls at Shenzhen, saying that the trucking capacity issues were likely to increase vessel wait times and disrupt their schedules. The average wait time for vessels at the Yantian terminal is now 3-4 days, while at the Shekou terminal it is 5-7 days.

To make matters worse, dense fog has also been covering a number of China's ports, including Shanghai, Ningbo, and Quingdao, lowering productivity even further.

Hong Kong is also seeing major delays as China tightens restrictions for cross-border trucking, with some claiming capacity has dropped by as much as 70%.

All news