The World’s busiest shipping port located in Shanghai went under a full lockdown at the end of March under China’s zero COVID tolerance…
The World’s busiest shipping port located in Shanghai went under a full lockdown at the end of March under China’s zero COVID tolerance policy. When cases allegedly rose, China extended the lockdown indefinitely. Shanghai hosts the busiest container port in the world, and its inability to operate is contributing to the supply chain crisis. A member of the EU Chamber of Commerce’s Shanghai Chapter estimated that volume was down by 40% during the first week that the ports were prohibited from operating. There is no set date for when the port will resume operation.
It is estimated that the lockdown currently imposed has imprisoned an alarming 25 million Chinese citizens in their homes, but the implications of shutting down the world’s largest shipping port amidst a supply crisis will send aftershocks throughout the global economy. To understand how crucial Shanghai’s port is to the global flow of goods, the Port of Shanghai hosts over quadruple the volume of the Port of Los Angeles (one of America’s largest shipping ports).
Those in the industry warned that this would cause problems. One of the largest international container companies, Maersk, said that Shanghai’s shutdown would cause a 30% rise in trucking costs alone.