Key sourcing regions in China are experiencing the worst flood in decades, devastating supply chains, with red alerts declared in Wuhan, Anhui, Jiangxi and Zhejiang due to heavy rains.
Heavy rain and floods have become a standard part of the summer rainy season in China, but the impact is being felt more this year due to the significant disruption of critical PPE and medical supply chains.
A week ago the areas impacted by the floods were mainly rural areas, with no major manufacturing, which meant minor impacts to shippers
After days of rain, meteorologists expected between 4 and 6 inches of rain in Sichuan, Anhui, Hubei and Henan provinces, with the country’s flood warning system set to its highest level and supply chains impacting with varying degrees of disruption.
More than 2 million people have been evacuated along the Yangtze River, with 142 dead or missing since the flooding began in June.
It has also caused over 116 billion yuan ($17 billion) in damages, and impacted more than 2.4 million hectares (6.1 million acres) of crops in July.
The Yangtze River is as an essential transport route between major manufacturing hubs including Wuhan, Chongqing, Nanjing, and Chengdu. On transporting cargo to the coastal seaports like Shanghai.
Along the river are 15 freight terminals, which handle over 19 million TEUs yearly.
The floods have severely disrupted river operations, leading to delays and congestion.
Transit times from the inland ports to Shanghai port have been revised:
By Yangtze river feeder
Wuhan to Shanghai: 10-12 days
Chongqing and Chengdu to Shanghai: 10-14 days
By Road transport
Chongqing/Chengdu/Wuhan to Shanghai: 3-4 days