The lockdown in Shanghai is expected to end in June

The lockdown in Shanghai is expected to end in June, with restrictions gradually lifted. A sudden return to near-normal levels of manufacturing and general economic activity could have some impact on an already overwhelmed global container distribution system. Once Shanghai fully reopens and the manufacturing engine starts to heat up, there could be a surge in U.S. and European containers. In addition, U.S. import demand remained strong in April, despite inflationary pressures and pandemic constraints. If trade remains strong, port congestion in the U.S. and Europe could worsen significantly, creating further delays and costs for already struggling shippers.

Previously, in March and April, manufacturers cleared their warehouses to clear their stocks and rushed out shipments. Shipping companies were still able to maintain a certain loading capacity. In May, the cargo volume became less, and many carriers launched air and aviation responses to effectively support freight rates.

The industry estimates that the wave of shipments emerged in mid-June. Maersk’s latest Asia-Pacific report predicts that after the epidemic is brought under control, it means that port throughput will soon expand, and the capacity of routes to the United States may increase. Then the price rise is an inevitable trend.