The port of the metropolis has been hit hard by the city’s tough lockdowns.
(Photo: dpa)
Munich According to Allianz shipping experts, the mega-traffic jam in the world’s largest container port in Shanghai will continue to confuse global supply chains for months to come. The corona lockdown in the Chinese metropolis is largely paralyzing the port.
“That cannot be solved quickly,” said Justus Heinrich, who is responsible for ship hull at Allianz subsidiary AGCS worldwide. It will take at least one to three months to get the situation under control. In any case, shipping is currently experiencing unprecedented port congestion, which puts crews and port personnel under great pressure.
Since the beginning of the corona pandemic, the industry has suffered from sometimes major delays in the delivery of raw materials and supplier parts. Shipping containers are scarce – millions of them are missing, Heinrich said at the presentation of Allianz’s annual shipping study.
The industry boom means that non-container ships are also being used to transport the metal boxes, old ships are being used longer and maintenance intervals are not being observed. That harbors risks – and now the war in Ukraine with its consequences is added to that.
Top jobs of the day
Find the best jobs now and
be notified by email.
Ships have already been lost in the Black Sea, others are stuck in ports in Ukraine. Ships have their own war insurance, which, unlike hull insurance, steps in if ships have to be lost. After a fixed waiting period of six to twelve months, ships that can no longer leave the ports can be declared a total loss. Allianz experts are also worried about a possible oil embargo against Russia. If the heavy fuel oil becomes scarce, shipowners could be forced to use other, perhaps inferior fuels, which lead to damage to the machine.
More: Deliveries of goods arrive weeks late, prices for container transport rise. Some retailers are fighting back with unusual measures.