Another Supply Chain Shock On Deck: Cargo Backlog Ripples Beyond Shanghai As Lockdown…

Read more on this subject: Pandemic
News Story Source:, by Tyler Durden
Rerouting freight to avoid the extended lockdown in Shanghai, where daily confirmed COVID cases topped a record 17,000 this week, is becoming more difficult and expensive as cargo facilities in other Chinese cities become overcrowded, logistics companies and carriers warn.

More than 90% of truck capacity is out of service. Trucks are prevented from moving in and out of the city without a special permit, which is only valid for 24 hours and only on specific routes. "Even with this arranged, it is possible for booked trucks to be commandeered by the government to transport aid supplies," Seko Logistics said in an update for clients. 

Most warehouses in the city are closed. Pactl, the large airport cargo terminal operator, only has skeleton operations. 

Limited truck access to Shanghai port terminals is causing shipping containers to pile up and slowing ship transfers.

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