China Port Congestion and Looming Global Supply Chain Crisis

Port congestion in China has turned into a severe crisis as the port at Shanghai has been running at half capacity for the last month. With 24.3% of container vessels waiting outside of Chinese ports and globally, there is a lag in shipping items from warehouses as vessels are stranded and behind schedule. This has worsened due to reduced trucking capacity and a lack of manpower as a consequence of strict lockdown measures. Containers are left unattended at ports until moved, with lead times on imported containers rising drastically. Rerouting of cargo to alternate ports has also contributed to the congestion and delays impacting manufacturing, with commodities stuck in transit.