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China’s Zero-Covid policy to restart US West Coast port congestion

Lockdowns in Shanghai and elsewhere are resulting in another backlog of goods, waiting to be moved within China and around the world. Last year, a backlog of containers waiting to be unloaded at the ports of Los Angeles and Long Beach. That’s set to happen again due to China’s “zero-tolerance” Covid policy, which has massively slowed down Shanghai port’s container unloading as well as domestic production for exports. Once the lockdown is lifted and economic activity once again springs to life, a pileup of products from accumulated orders will surge into the US.

Hundreds of container ships and bulk ships are waiting to unload off the port of Shanghai, while air carriers have announced numerous cancellations. In order to prevent this disruption from interrupting their supply chains, some firms are looking to move supply chains out of China.

Source: thediplomat.com


Photo source: Dreamstime.com


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