Shanghai is back in action


As China rolls back restrictions on most parts of Shanghai, port operations appear to be approaching normal levels. It mainly handles mother vessels that connect China with the US and Europe.

It’s good news for the global supply chain as Shanghai, which has the world’s largest container-handling port, is finally lifting its lockdown. As Shanghai reopens, this is a significant sign that everything will be back to normal. With the opening up of Shanghai, shipping movements will enhance, vessel availability will increase, and container slots will improve.

Analysts nonetheless continue to worry about the possible ripple effect across the global supply chain and the potential for ports in North America and Europe to be challenged by a new surge in volumes. Nonetheless this port could be also swamped with container imports of raw materials urgently needed by starved factories in the hinterland.

To effectively help foreign trade enterprises, Shanghai encourages port enterprises to reduce or exempt cargo storage fees for a specific period, encourages shipping companies to reduce or exempt demurrage fees for a specific period, and advocates port- and shipping-related enterprises to reduce or exempt import- and export-related logistics operation costs, the Chinese Ministry of Transport’s website said.