Shanghai is gradually recovering from a grueling COVID lockdown that has effectively paralyzed the city since March. Although Shanghai’s harbor, which processes one-fifth of China’s shipping volumes, has remained open, it has been working at a significantly reduced capacity. Many cargoes have been canceled, delayed, or redirected to other Chinese mega-ports including Ningbo-Zhousan.

With the city set to reopen entirely on June 1, the port will be in high gear as manufacturers rush to clear backlogs, with major ramifications throughout the world. It exemplifies how global supply networks in 2022 have been destabilized in ways that were not obvious at the start of the year. It was projected continuous disruption in January while the global economy recovered from the outbreak. In reality, things have worsened.

Other important Chinese ports, such as Shenzhen, have also been hit by lockdowns. Then there’s Ukraine. The battle has caused costs for products and services to grow much faster than expected in 2022, complicating logistics.
Source: MENAFN