The Strategist

Reuters: Chinese New Year will further exacerbate global transportation problem

02/03/2022 - 07:42

Chinese New Year celebrations have been cited as the culprit behind the worsening global problem of international freight traffic. This was reported by Reuters, citing analysts interviewed by the agency.

Ansel Adams via flickr
Ansel Adams via flickr
Agency interlocutors said that just preparations for the Lunar New Year led to an increase in delivery time of goods from Chinese ports in the Belgian Antwerp from 68 to 88 days. A year earlier, the same journey took an average of 65 days.

Travel time from Dalian in China to Felixstowe in the UK has increased from 81 to 85 days, compared to 65 days in January 2020. A similar problem has arisen in the US, particularly in major cities in California.

Reuters notes that market participants expect even more problems and supply chain disruptions due to upcoming plant closures in China and some other Asian countries in connection with the Chinese New Year.

The supply problems began worldwide in 2020 amid the coronavirus pandemic, restrictions imposed in various countries, especially China, and plant closures due to it. In 2021, a major port in the Chinese city of Dalian was closed several times to receive and dispatch cargo due to outbreaks of the disease.