The Shanghai Shut-Down and Supply Chain Problems

The Shanghai Shut-Down and Supply Chain Problems

At the end of March of this year, the government of China shut-down the city of Shanghai to try to contain a COVID-19 outbreak. Shanghai is the biggest city in the world with a population of over 24 million people. The city is also on both the Yangtze and Huangpu Rivers and the South China Sea. The city of Shanghai has the very important Port of Shanghai, and the city shut-down had a major impact on the port and world shipping.

To understand the impact of closing the Port of Shanghai, let’s take a look at the importance of the port. The Port of Shanghai is the busiest container port in the world which handles well over 40 million TEU. TEU is an acronym for Twenty Equipment Unit. One TEU is equal to one 20-foot container. The port has equipment that can lift over 100 tons, and a variety of different types of cranes available.

Not only that, but the way the Port of Shanghai is designed, it can receive, load, and unload the largest container ships in the world, ships that are about 400 meters longs and have capacities of about 20,000 TEUs. So, now we know why shutting down Shanghai and the Port of Shanghai has had a big impact on global shipping.

While restrictions were starting to lift at the end of April, the problems and delays in world shipping are expected to be felt throughout the summer. Significant shipping delays impact global supply chains which are already being impacted by the war in Ukraine and sanctions against Russia. COVID-related truck shortages inside China and delays getting products to and from the port are also adding to the problem.

We will all have to wait and see how and when these supply chain problems resolve. If you need some help with your shipping and logistics, please contact Overseas Container Logistics in Vancouver at (604) 295-8236, and let us help you find the best solution for your shipping problems.

Overseas Container Logistics (OCL) is a 3PL commercial freight-forwarding company based in Richmond, British Columbia.

If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at (604) 295-8236.