Critical port congestion in China threatens carmakers
By Namrita Chow2022-04-27T12:11:00
Volkswagen is one of a number of carmakers battling disruption to international parts supply and local working conditions because of China’s zero-Covid policy
Severe congestion at the port of Shanghai is threatening car production around the globe and parts suppliers in China are targeting alternative ports for export, such as Ningbo-Zhoushan, the world’s third busiest container port. However, calling times at Ningbo have already increased to between three and four days because of diverted shipping.
Inland, meanwhile, the Chinese government began reopening national highways and logistics hubs from April 25. Logistics companies do need to obtain a national pass so that their vehicles can travel during this period to and from high-risk areas but means goods can be transported between 22 provinces and municipalities, including the cities of Shanghai, Tianjin and Hebei, as well as the provinces of Jiangsu, Zhejiang and Fujian.