How the Shanghai shutdown ripple effect is impacting port volume

Oakland, Calif. – As supply issues continue in Shanghai, the Port of Oakland reported a second straight monthly loss in volume for April.

The Port reported today that total volume through April dropped 7% from the same period a year ago. This follows an 11% loss in March. Containerized import loads through Oakland fell 17% in April, while exports sagged 18%.

The Port attributed much of the decline to factory and port shutdowns in China, Oakland’s largest trade partner. The Port said disruption at Shanghai, the world’s busiest port, is delaying U.S.-bound import shipments, and that wreaks havoc on ocean carrier scheduling.

“U.S. exports have been hampered by vessel schedules thrown into disarray in China,” said Port of Oakland Maritime Director Bryan Brandes. “Most of Oakland’s business depends on the Asia-U.S. trade route.”

The Port said Oakland said cargo flow has been affected by additional factors, including:

A drop in the number of ships stopping in Oakland
Importers slow to retrieve shipments, thereby crowding container yards and slowing cargo discharge from ships
A container shortage making it harder to load export shipments

The Port did say however, that it believes supply chain relief could be incoming. Shanghai cargo activity has recently picked up, and the Port is talking to shipping lines about increasing the number of Oakland vessel calls.

“The pace of cargo operations should accelerate as vessel schedules normalize,” said Brandes. “That’s welcome news as Oakland prepares for peak shipping season, which industry experts say will begin earlier this year. Retailers are likely factoring in more time for receiving their goods based on the shipping delays they have been experiencing during COVID.”

The Port of Los Angeles comparatively posted another huge month in April, its second biggest April in its 115-year history, after April 2021.