FourKites sees limited supply chain recovery from ease of lockdowns in China

FourKites®, the world’s leading real-time supply chain visibility platform, today announces that it has seen limited recovery from the ease of Covid-19 lockdowns as ocean shipment volume for both imports and exports decrease across China.

After peaking in mid-April and reaching only 10% below 12 March volumes (the day before lockdowns began going into effect) on 31 May, volume at the Port of Shanghai decreased 6% over the past week, with the 14-day average ocean shipment volume down 19% when compared to 12 March. Meanwhile, ocean shipment volume at the Port of Ningbo-Zhoushan (down 20% week-over-week and 7% above 12 March), the Port of Shenzhen (down 10% week-over-week and 18% above 12 March), and the Port of Hong Kong (down 1% week-over-week and 19% above 12 March) saw significant decreases in volume, consistent with a decline in volume across the rest of China (down 16% week-over-week and down 11% below 12 March).

FourKites continues to see a tepid recovery as lockdown effects in China continue to impact U.S. supply chains despite recent restriction relaxations. The 14-day average volume of completed ocean shipments traveling from China to the U.S. decreased by 13% week-over-week, and is again down 28% compared to 12 March. The percentage of shipments that are delayed along this route remain elevated at 35% (compared to 25% on 12 March), as supply chains continue to catch up to demand. This decrease of 4% from April highs and value consistent with the prior week points to a potential plateau.

Ocean dwell times at the Port of Shanghai decreased over the past week for imports, with the 14-day average now at 6.6 days. This is down 41% from the peak in late April and down 21% from 23 May, but remains up 89% from 12 March (the day before lockdowns began going into effect). Dwell time for exports at the Port of Shanghai have increased over the past week with the 14-day average now at 7.9 days, up 30% week-over-week and up 61% compared to 12 March. As activity in Shanghai continues to increase post-lockdown easing, the increase in export dwell times signals the Port of Shanghai is potentially struggling to keep up with export demand.

Across the rest of Chinese ports, ocean dwell time for exports continues to rise, with the 14-day average dwell time now at 9.9 days. This is an increase of 38% compared to 12 March.

Finally, FourKites has begun to see formerly increasing levels of over-the-road and rail shipments into Shanghai begin to taper off while volume out of Shanghai remains muted. While the 14-day average shipment volume being picked up from Shanghai is now at 84% below levels seen on 12 March, shipments delivered to Shanghai are only down 45% over the same period, a decrease of 16% week-over-week, 43% higher than levels seen on 14 May.

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