A long way from and to China
After Seko Logistics’ Hong-Kong-based regional headquarters first announced that Chinese ports were closing and that vessels would be diverted from Shenzen, the situation has rapidly deteriorated. The lockdowns in 19 provinces so far, affecting Shenzhen, Shanghai, Suzhou, Guangzhou and Beijing amongst others, will seriously hamper container movements at the regional ports.
Data provider Container x Change commented on this and other burdens of the supply chain: "On top of this, war will just prove to be another disruption amongst the other innumerable factors for China’s supply chain."
So far, the immediate impact of the war on container prices is limited. The average prices for teu containers have declined by an average of 10-15% since February, while the average prices for 40 feet high cube containers have increased slightly at the port of Shanghai while declining at Ningbo and Qingdao since January up until the second week of March.
Yet Johannes Schlingmeier, co-founder and CEO of Container x Change, sees a change of the tide: “Lockdowns in China will further reduce capacity and cause a surge in already inflated shipping prices. The shockwaves will be felt across the USA and America, and almost everywhere in the world.”
Moreover, the anticipated closure of the Asia- European railway, which transports about 2.5% of Asia-Europe cargo, will cause the high-value cargo to be pushed to ocean freight which is already low in capacity. (sh)