Covid congestion costs

Further analysis over 12 – 19 January 2022 shows that trade worth US$635 million from Shanghai, China to the United States is currently under threat, as Covid restrictions continue to wreak havoc on supply chains. Vessels are over a week behind schedule as major Chinese ports including Ningbo and Tianjin lock down in response to a surge in cases caused by the Omicron variant.

“Our new analysis from the ALPS Scenario Factory shows the precariousness of global trade,” said Suki Basi, Russell Group managing director.

“In this climate, a lockdown in a major port can have a knock-on effect on another port, in this case Shanghai, which is unable to cope with demand, resulting in delays that disrupt organisations and consumers alike.”

Shanghai is experiencing a rise in Covid cases but the authorities have largely contained the issue to a restricted area rather than enforcing a lockdown here and across further major Chinese cities.

Imports are under threat too as more than US$559 million dollars’ worth of ICBs that are normally imported into Shanghai are also being delayed.