Supply Chain

Blanked Shanghai sailings slow to materialise

As Shanghai enters the fourth week of an indefinite lockdown, container shipping lines are skipping calls at main Shanghai terminals, with more blank sailings anticipated as vessels waiting at Chinese ports double. Until the lockdown situation is resolved, which appears challenging when putting the Omicron variant against zero-tolerance, we expect drops in export demand, port

COVID update: Shanghai lockdown impact

China’s economy grew faster than expected in the first quarter, expanding 4.8%, but the risk of a sharp slowdown over coming months has risen as Shanghai’s lockdown is extended indefinitely and further COVID-19 curbs may follow.  Nearly all of Shanghai is now under lockdown, with most residents unable leave their homes, even for food, while

US east coast port congestion continues to build

Reacting to fears of labour disputes and disruption at west coast ports, many US importers diverted cargo from Asia to the east coast – only to find that Atlantic congestion may be worse than on the Pacific. Importers on the west coast are getting their cargo quicker than their peers on the Pacific coast, with

Shanghai supply chain update– Lockdown extended indefinitely

The lifting of COVID restrictions in parts of Shanghai this week has been postponed after nearly 20,000 new cases were reported on Monday. While the primary port terminals and airport remain open, most workers are in locked-down neighbourhoods and the impact on production and inland logistics is severely limiting supply chain operations. With limited goods available to despatch, demand for air

Sea freight challenges in India and Sri Lanka

Leading container shipping line MSC is reducing Indian ports of call, in order to sustain a weekly sailing frequency on major commercial routes. As the shipping line struggles to sustain a weekly sailing frequency on major commercial routes, Mediterranean Shipping Co (MSC) is reducing Indian ports of call, with services between India the United States

April global logistics update; Five key supply chain disruptors

Since the early days of 2020, the COVID-19 pandemic has disrupted global supply chains, creating shortages of goods, even though ships, trains, trucks and planes continued to run, to the best of their ability. The infrastructure that supports global supply chain operations has struggled to absorb the continuing impacts emanating from COVID-19; including the need

Bracing for continued fuel surcharge increases – if it moves it needs an engine

Fuel prices were already on the way up before Russia decided to invade its neighbour and the additional volatility and uncertainty created by the conflict in Ukraine are significant enough to drive oil and fuel prices to levels not seen before. Or at least since the 1970’s relatively. Average low-sulphur marine fuel prices had already risen to $726/mt prior to the Ukraine

China lockdowns impact on logistics

Following their seven-day lockdown, Shenzhen has reopened for business, but it could take weeks for cargo flows to recover, with vessels queuing and Yantian port throughput down 40%, amid concerns that COVID surges in other regions will affect supply chains, as strict controls, restrictions on inland transport, extensive testing and lockdowns has ramifications on supply chain operations. With a third of the world’s manufacturing

China ship queues growing with further disruption to schedules

Despite key Chinese ports, including Shenzhen and Shanghai, operating normally, land-side logistics disruption, in the wake of the latest Covid-related lockdowns is inevitable and vessel queues are growing. Queues of container ships outside major Chinese ports are lengthening, despite ports continuing to function normally – though with limited capacity – because many of the most profound