Even though China appears to be moving in the right direction by gradually easing its lockdown of Shanghai, we aren’t going to immediately see relief from the global supply-chain congestion according to insights from major shipping companies.
As supply-chain stresses are exacerbating global inflation, threatening to further pressure on slowing global goods trade. This has meant more shippers have tried to shift to air routes but have encountered similar problems with many cancellations occurring due to staffing shortages, according to digital freight forwarder Zencargo.
Jeremy Nixon, chief executive officer of Ocean Network Express Pte stated around 130 ships are waiting off Shanghai’s port and that this disruption to supply chains has extended further south to other ports. This is seen off Shenzhen and Hong Kong where the number of container ships has hit a seven-month high of 184 vessels, at this time last year there were just 95 vessels in the area.
Nixon went on to say that scores of container ships are waiting for weeks to berth at ports from Los Angeles to Hamburg. This, combined with supply-chain issues emanating from Russia’s invasion of Ukraine, supports the weaker port figures that match stories of companies and officials who are still strained.
Due to these globally disruptive supply bottlenecks logistically World Class Wholesale, LTD. have been proactive in leaning toward sourcing from Southern Asia, Western Asia and Europe to best mitigate supply chain issues that have been occurring.
However the effects are still being felt in Europe as the Eurozone PPI excluding construction has seen a steady increase since the start of the year, it just goes to show how in a world where the landscape is continuously changing you can find significant value from staying adaptable to any geopolitical or natural event.