CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Supply chain bottleneck in China worsening

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For metal manufacturers waiting on equipment or supplies routing through China, the pandemic-induced delays are only getting worse.

Shanghai remains under an extended lockdown and rerouting freight to avoid China’s largest city is proving more difficult and expensive as cargo facilities in other Chinese cities become overcrowded.  The logistics challenges for ocean and airfreight in Shanghai are “extreme”, according to a report in American Shipper magazine.

More than 90% of truck capacity is out of service, American Shipper magazine reports and trucks need a special permit to move in and out of the city. The permit is only good for 24 hours and only for specific routes and booked trucks can still be commandeered by the authorities and used to transport aid supplies.

American Shipper also reports that most city warehouses are closed while limited access to Shanghai’s port terminals is leaving shipping containers piled up at dockside. One large logistics company is reporting an 80 per cent decrease in container pickups from outside the lockdown area because of driver shortages and restrictions.

The Port of Ningbo is an alternative but its terminals are also becoming overwhelmed and freight rates are rising as a result, American Shipper reports.

The majority of flights in and out of Shanghai Pudong airport are also cancelled.

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