China | Fragile global supply chains with no end in sight: Ship jam off Shanghai

German industry is bracing for potentially serious consequences due to a shipping congestion at the world's largest container port in Shanghai

Many cargo and container ships are backed up outside the port of the Chinese metropolis of Shanghai. This is shown in the graphic based on a current map excerpt from Fleetmon, an online tracking portal for ships. The reason for the congestion is the strict lockdown imposed on the city by the Chinese government. This also affects port employees, which is why the world's largest port is currently operating with significantly fewer staff.

German industry is bracing for potentially serious consequences due to a shipping bottleneck at Shanghai, the world's largest container port. Industry president Siegfried Russwurm told the German Press Agency in Berlin: "German industry fears disruptions to production processes in the coming weeks. Those sectors most affected are those that rely on deliveries of raw materials or components, as well as the shipment of their finished products by sea."

Measured by container throughput, the Port of Shanghai is the world's largest port. 47 million TEU (Twenty-foot Equivalent Unit, a unit of measurement for container size) were handled there last year. The largest European port is Rotterdam, which handled 15.3 million TEU. In Germany, the Port of Hamburg recorded the highest cargo throughput, handling approximately 111 million tons of goods in 2021. This puts the Port of Hamburg significantly ahead of the ports of Bremerhaven and Wilhelmshaven. The graphic below provides an overview of the world's largest cargo ports.

Fleetmon uses Automatic Identification System (AIS) signals from ships to display traffic volume. These signals are used in shipping to exchange navigation data via radio. Every ship over 20 meters in length is required to transmit an AIS signal. This signal includes call sign, ship type, GPS position, dimensions, and similar data.

German industry is bracing itself for potentially serious consequences due to a shipping jam at the world's largest container port in Shanghai

Many cargo and container ships are jammed up in front of the port of the Chinese metropolis Shanghai. This is shown in the graphic based on a current map section from Fleetmon, an online tracking portal for ships. The reason for the congestion is the tough lockdown imposed on the city by the Chinese government. This also affects port employees, which is why the world's largest port currently has to manage with significantly fewer staff.

German industry is bracing itself for potentially serious consequences due to a shipping jam at the world's largest container port in Shanghai. Industry President Siegfried Russwurm told the German Press Agency in Berlin: "German industry fears disrupted production processes in the coming weeks. Particularly affected are industries that rely on raw material or construction component deliveries as well as the shipment of their finished products via sea transport."

In terms of container throughput, the port in Shanghai is the largest port in the world. 47 million TEUs (Twenty-foot Equivalent Unit, unit of measure for container sizes) were handled there last year. The largest European port is in Rotterdam – 15.3 million TEU were handled there. In Germany, the Port of Hamburg recorded the largest cargo throughput. Around 111 million tons of goods were handled there in 2021. This puts the Port of Hamburg well ahead of the ports of Bremerhaven and Wilhelmshaven. The chart below provides an overview of the world's largest cargo ports.

Fleetmon uses Automatic Identification Systems (AIS) signals from ships to display traffic volumes. These are used in shipping to exchange navigational data via radio. Every vessel over 20m must transmit an AIS signal. It transmits, among other things, call name, vessel type, GPS position, dimensions and similar data.

Fragile supply chains: Supply chain under pressure – Image: Xpert.Digital / Travel mania|Shutterstock.com

Global supply chains are still strained by the pandemic. Many countries have implemented numerous anti-pandemic measures, triggering significant delays in value and supply chains. For example, control and quarantine zones at logistics hubs have led to supply bottlenecks. As a result, many suppliers have been hampered in their production and have been unable to fully meet their delivery obligations. A lack of components can quickly and severely disrupt production processes. Added to this are the shortages of workers due to illness or travel restrictions.

Is the global supply chain tearing apart due to ongoing problems and regional crises? – Image: Xpert.Digital / Iaroslav Neliubov|Shutterstock.com

We recently wrote about this: “As has been described countless times before, globalization has severely strained supply chain structures, making them vulnerable to unexpected crises beyond their control. However, it has also failed to strategically sensitize them in a relatively short time. This means that no easing of the situation along the supply chain in logistics or intralogistics is in sight for the future.”

Now is the time to act. Anyone who only acts now is late – and there are many! As early as 2012, a survey revealed that 16.2% of companies polled had no solutions or strategies for supply chain risk management. A response is urgently needed now, because the current situation is here to stay. And what many aren't even considering: the danger of a chain reaction and the potential consequences of further crises is real. Can anyone seriously say that's it?

Logistics Library (PDF) – Image: Corona Borealis Studio

Data is reviewed and its relevance assessed at regular intervals. This usually yields a number of interesting pieces of information and documentation, which we summarize in a PDF presentation: our own data analyses and marketing intelligence, as well as external market observations.

Ship congestion off the European ports of Rotterdam and Antwerp – Image: FabianIrwin|Shutterstock.com

Global supply chains are still strained by the pandemic. Many countries have implemented numerous anti-pandemic measures, triggering significant delays in value and supply chains. For example, control and quarantine zones at logistics hubs have led to supply bottlenecks. As a result, many suppliers have been hampered in their production and have been unable to fully meet their delivery obligations. A lack of components can quickly and severely disrupt production processes. Added to this are the shortages of workers due to illness or travel restrictions.