![]() ![]() “The supply-chain situation in Shanghai continues to worsen. Lars Jensen, the CEO of the shipping industry adviser Vespucci Maritime, said that he doesn’t see any immediate end in sight to production and logistics disruptions in China either. You’re going to have a lot of pent-up orders,” he said. That means, once lockdowns end, there’s going to be an “overwhelming movement of goods” that cripples supply chains, Jon Monroe, an ocean shipping and supply-chain expert who runs Jon Monroe Consulting, told FreightWaves on Friday. In 2020 alone, the U.S imported roughly $435 billion worth of goods from Chinese cities and sent another $125 billion to the country in exports, according to the Office of the United States Trade Representative. imported more goods from China than anywhere else in the world over the past decade. That’s rough news for the American consumer, given the fact that the U.S. “Even with air and ocean ports open, the length of the shutdown could make this iteration the most significant logistics disruption since the start of the pandemic,” the shipping company Freightos said in an update to clients this week. Global supply chains are set to take a hit.Īfter all, Shanghai is home to the world’s largest port, and although it has largely remained open, trucks are struggling to unload cargo due to strict permit regulations, causing shipping containers to stack up. ![]() ![]() And with Chinese President Xi Jinping doubling down on the country’s zero-COVID approach, what happens in China isn’t likely to stay there. The strict lockdowns have left some residents desperate for food and led to viral videos of Shanghai residents screaming from the windows of their high-rise apartments. Experts are warning China’s recent string of COVID-19 lockdowns is about to send another shock through global supply chains.Īt least 373 million people-in cities that represent roughly 40% of China’s gross domestic product-have been affected by the most recent wave of lockdowns across China, Reuters reported last week. ![]()
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