Unfavorable conditions for supply chains due to lockdowns in Vietnam and China

There is a 100,000 teu pile-up at Ho Chi Minh City’s Cat Lai port due to lockdown in South Vietnam. To add on to it all China, Shanghai and Ningbo ports are reportedly also facing additional congestion from new restrictions owing to Covid.

Yard density at Cat Lai is currently around 85% as per a news report from Saigon, with 106,700 teu clogging the terminal, although few containers were cleared over a week ago.

As per reports there has been a speedy increase in the volume of over-dwelled import containers at Cat Lai, which negatively impacted vessel handling, leading to implementation of measures to have shippers pick up their cargo, additionally   free transport to nearby depots.

Furthermore, equipment shortages still persist, ever since the pandemic began.

Freight rates have shooted up five times and seems to be getting really out of control as per sources.

According to a latest update, few factories are expected to reopen this week, which indicates towards worsening of empty container availability.

Factories are reopening and manufacturing is ramping up which will lead to severe equipment shortages in the southern provinces in weeks to come, equipment supply in the north is also “extremely tight”.

From a vessel schedule standpoint, sailings have mostly continued as per plan, though with some departure delays.

Some 14 transpacific sailings are expected to be delayed in next couple of weeks, owing to the deteriorating Covid situation in China. Congestion is becoming worse in both Shanghai and Ningbo, an early warning of the coming impact of new Covid restrictions. There is a speculation over the possible impact of another nationwide lockdown in China. At the moment, the main impact is on vessel crew, who are facing additional testing and restrictions on change-overs.

A forwarder feels that if Chinese ports close or if vessels are not allowed to berth, it would cause immense trauma for logistics.

SLA Logistics is extending core shipping services to the global agency networks, affiliated associations and local merchants who are trusted patrons to our services.

Contact Us

JAFZA, Dubai, UAE.
Allright Reserved - SLA Logistics