How will Shanghai’s Pandemic Lockdown Impact Supply Chain?

The city of Shanghai and its 25 million people are under an indefinite lockdown as China deals with its largest Covid-19 outbreak since the pandemic started. The good news is that China has kept the ports open. The bad news is that the critical shortage of truck drivers is impacting shipping volume, with one source estimated a 26% decrease in early April.

These lockdowns will impact supply chain in two ways. First, shipping lines will change their routes, meaning blank sailings for certain trade lanes. Second, the backlog of cargo will grow until things get back to normal. Depending on how long the lockdowns are, pent up stock in Chinese factories and warehouses will turn into a flood of goods bound for North America and Europe, like it did in 2020.

Our team in Shanghai are keeping healthy and will continue to monitor this situation on a daily basis, keeping our customers updated.

Source:
1. Shanghai’s lockdown is making the supply chain look like 2020 again, Quartz, April 11, 2022. Accessed April 18, 2022.