29th April, 2022
Dear Valued Gava Customers,
On March 27th, authorities in Shanghai began a snap lockdown after mass testing revealed a “large scale” of COVID-19 infections, which has significantly impacted supply constraints.
At the port of Shanghai, the largest container port globally, ships are heavily backed up, waiting to unload their cargo. According to shipping analytics firm Windward, 20% of the world’s roughly 9,000 active container ships are currently sitting in traffic jams outside congested ports. Close to 30% of that backlog alone is in China—double the domestic congestion rate in February—where a virulent Omicron wave is snarling supply lines.
Windward says the lockdowns in China, which began in mid-March, have nearly doubled the number of container ships loitering off the country’s coast. As of April 19, Windward recorded 506 vessels awaiting berthing space at Chinese docks, up 195% from the 260 halted offshore in February. Before the lockdowns started, congestion at China’s ports accounted for only 14.8% of the global container backlog, versus roughly one-third now.
Beyond the port of Shanghai, restrictions on cross-border trucking and movement throughout the city have prevented workers from off-loading and on-boarding shipping containers, creating delays.
This graph from the Maritime and Aviation Intelligence firm VesselsValue puts the depth of the crisis into perspective. It illustrates the staggering number of ships waiting to load or discharge their cargo in Shanghai compared to historical averages.
As always, our goal is to maintain agreed service levels and minimise service disruptions. We understand delays are frustrating and upsetting, so please understand that these are challenging times, and sometimes our best endeavours may fall short of our desired outcomes due to elements outside of our control. We ask that you please take this into consideration.
At Gava Australia, we will do our absolute best to deliver your goods on time and keep you well informed of any changes/ issues that arise in the industry. Should you have any questions, please don’t hesitate to contact us at Gava Australia.
For additional updates and information on the Latest News in the industry, please visit our new Gava Website: www.gava.com.au/blog
Regards,
Gava Australia
