Container Freight rates to increase on more China lockdowns

28 Mar 2022 CW Team

The number of container ships waiting off Qingdao port continues to rise as the country doubles down on its Covid Zero policy, adding more delays to an already strained global supply chain.The increased delays across China are expected to increase freight rates.

According to data, nearly 72 vessels were spotted off Qingdao port in Shandong, which almost doubled at the end of February. The increased delays across China are expected to increase freight rates.

This year, the volumes of container ships are being exacerbated by lockdowns aiming to curb new coronavirus outbreaks.

Salmon Aidan Lee, head of Wood Mackenzie, told the media that the Covid-19 pandemic situation has worsened in the past few days at Qingdao. He expects freight rates to increase because of increasing delays.

There is also a growing backlog of containers off Shanghai Ningbo and Zhoushan ports. There were 262 ships, up from 243 a week ago. However, the situation in Shenzhen and Hong Kong has eased a bit, down to 162 vessels.

The rapid spread of the pandemic had already strained supply chains reeling from the Russia-Ukraine war. Shipping lines like AP Moller-Maersk have cancelled their services to Russia and halted some rail shipments from China into Europe.

China has locked down Shenzhen and the northeast province of Jilin to control the pandemic, threatening technology and auto manufacturing output. The Yantian container port operations are continuing normally.

China's zero-tolerance policy has led to several partial closures of ports over the past year, exacerbating concerns about disruptions to supply chains and increase in production costs. The surging price of global oil and gas due to the Russian-Ukraine are increasing inflation risks in China as factory costs remain high.

Image Source

Also read: Mangalore port's container terminal to begin operations by March-end

Infrastructure Urban

07 Jul 2026

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Air India and SIAEC to Explore MRO Joint Venture in India

Air India and SIA Engineering Company (SIAEC) have signed a memorandum of understanding (MoU) to explore the formation of a maintenance, repair and overhaul joint venture in India. The MoU, signed on Friday, will examine collaboration to develop India as a global aviation MRO hub and to serve growing needs across the Indian and regional markets. SIA Engineering Company, part of the Singapore Airlines Group which holds a 25.1 per cent stake in Air India, will bring technical expertise alongside Air India's established airline operations network. The partnership builds on existing cooperation be..

Assam and Centre Review Aviation Projects Push Silchar Airport Approval

Assam and the Centre on Thursday, July two reviewed a series of aviation infrastructure projects aimed at strengthening air connectivity across the state, with the proposed greenfield airport at Silchar emerging as a key priority. The review formed part of broader efforts to position Assam as a major aviation and logistics hub for the north east. Officials outlined timelines and preparatory work that they said would guide the next stages of project approvals. The Chief Minister met the Union Civil Aviation Minister at Rajiv Gandhi Bhavan in New Delhi and described the meeting as very productiv..