Shanghai prepares to reopen, but soaring prices, longer-term supply-chain instability expected

AS Shanghai slowly reopens following a lockdown of almost 2 months, logistics providers are bracing themselves for the prices of containers to spike — a situation that could last up to 8 weeks, with volatile container rates likely to prevail well into next year.

Ken Ngan, honorary treasurer of the Singapore Logistics Association (SLA), said: “Prices are expected to soar immediately for exports once the port resumes full operations as many containers have been waiting ... in Shanghai.

“With alternative port options such as Ningbo, the situation could ease in about 6 to 8 weeks. Nevertheless, prices are expected to remain high, as the reopening coincides with the upcoming peak season and its accompanying surcharges.”