Port congestion intensifies due to China lockdown

Vessel wait times at China’s Port of Yantian are increasing, threatening delays and disruptions to an already stressed global supply chain.

Logistics software vendor Project44 tracked a 44% spike in vessel wait times at the port this week, following a Covid-19 lockdown in the city of Shenzhen. China’s zero-tolerance policy against Covid-19 forced the city of nearly 18 million people into a seven-day lockdown on March 14, when 60 cases of the virus were detected. Project44 leaders say the ripple effects are already being felt at other ports in the region, including Ningbo and Shanghai, where vessel wait times are also growing.

The shutdown has also halted activity in the manufacturing-intense region, which is home to the world’s leading producer of electronic components, Foxconn, which makes parts for Apple, Sony, Nintendo, and Hewlett-Packard, among others.

The shutdown in Shenzhen is set to end this Sunday, but Project44 leaders say more slowdowns are likely to be felt worldwide in the days and weeks ahead.

“It’s likely that the cumulative effects on the consumer electronics, automotive, and medical equipment industries worldwide will soon be felt,” according to Josh Brazil, vice president of supply chain insights for Project44.