Covid lockdowns still disrupting Chinese supply chains

Covid outbreaks across China continue to threaten severe supply chain disruption.

Both Shanghai and Shenzhen have been placed under new restrictions, and even though their ports remain open the effects are starting to be felt.

"Most carrier staff, like those of CMA, ONE, HMM, Matson, have started working from home, which may cause delays in communication, emails and operations." said one local industry expert.

"There are trucking restrictions for vehicles traveling in and out of Shenzhen, which means no cargo from outside the restricted area can enter.”

Supply chains could also be impacted at the manufacturing stage, as Shenzhen is home to many major electronics factories.

The disruption is beginning to translate into increased vessel backlogs at ports. Last week there were 262 vessels waiting outside Shanghai and Ningbo, up from 243 the week before.

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