Shanghai has been on lockdown for over a month, and at least 40 other Chinese cities are either fully or partially on lockdown. The Beijing government’s zero-tolerance policy on Covid is halting maritime trade. The city, one of the most important manufacturing centers in China, is an integral part of today’s supply chain. Its port handled almost a quarter of the country’s freight traffic last year, according to Project44, a company specializing in supply chain transparency. There are fears that this wave will turn into a tsunami if the Asian giant’s component shortage hits other manufacturing centers in Asia. Vietnam, Cambodia, India or Japan are at the epicenter of the hurricane
Report from Royal Bank of Canada, echoing Reuters, shows that a fifth of the world’s container ship fleet is stuck in various Chinese ports. About 350 of these large ships are waiting to dock in Shanghai, up 34% from last month. This leads to delays: according to company analysts, the delivery of goods from a warehouse in China to a warehouse in the United States takes 74 days longer than usual.
In Information, they analyze this phenomenon and its implications for the global economy. Jose Manuel CorralesProfessor of Economics and Business at the European University; Paul Gilchief strategist at XTB and Pavel Gomez del CastilloHead of Communications at Credito y Caución.
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