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Shanghai Port Strike Affects Ocean Transportation and Logistics

As some of you may know, there is a current situation regarding truckers and the ability to move containers in and out of the port of Shanghai.

The situation stems from the rising costs of fuel, and truckers in Shanghai not being able to raise their fuel surcharge charges to compensate. The ultimate result has been a strike by truckers that to this point, continues to affect traffic around Shanghai, although a quick resolution is anticipated (read further).

Details of the strike are summed up as follows:

-Chinese government regulations do not allow truckers to adjust their charges for fuel. Starting on 4/20/11, truckers went on strike to protest.

-Serious delays and congestion on containers moving into the port was seen on 4/20-4/22/11. On-strike truckers blocked access, and in some cases even attacked any trucks trying to move into the port, disabling any traffic.

-On 4/22/11, the Chinese government stepped in and eventually allowed truckers to adjust their fuel surcharges. Delays on 4/22 decreased significantly, although delays upwards of 4 hours were still experienced toward the end of the day.

-This situation is expected to clear up by Monday in Shanghai. In order to accommodate for the delays on inbound containers, most steamship lines have delayed vessel cutoff and departure dates by 2-4 days.

At this point, due to the expected quick resolution to the strike, we do not have any plans to reroute containers to alternate ports. LEGACY will continue to provide relevant updates as more information becomes available.

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