How will China’s latest Covid-19 measures impact global supply chains and logistics?
Rising Covid-19 cases in a number of Chinese cities is likely to have an impact on global supply chains and logistics.
Sea freight at Shanghai Port
Shanghai port, the largest container port in the world, is now subject to lockdown to halt the rise in Covid-19 cases.
This week, local authorities in Shanghai escalated restrictive curbs in China’s biggest city.
The transportation of containers in and out of Shanghai is likely to be severely disrupted in the coming days. Warehouses and storage yards for containers are also being temporarily shut down. The shutdown of Shanghai port is likely to see a rise in freight rates caused by delays. Some freight has been redirected from Shanghai to Ningbo port, increasing costs and transit times.
UK retailers were already warning consumers about delays and the prospect of higher costs for finished goods after Covid-19 restrictions were imposed at Yantian port (Shenzhen) in early March. Restrictions at both Shanghai and Yantian ports are likely to create further issues for global supply chains over the coming months.
The Ukraine crisis has recently had an impact on both air and sea freight in Europe and North Asia.
In the United Kingdom, businesses shipping goods into and out of the European Union have faced added complexity and increased paperwork requirements due to Brexit. Recent delays at Dover have been caused by the cancellation of P&O ferry services.
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