China Ningbo-Zhoushan port is closed. What will happen NEXT
China Ningbo-Zhoushan port is closed. What will happen NEXT
China has shut down a key terminal at its Ningbo-Zhoushan port, the third busiest port in the world, after one worker was found to be infected by Covid — a move that will likely put further pressure on already stretched supply networks.
China’s stance will lead to “severe” supply chain consequences.
All inbound and outbound services at the Meishan terminal at the Zhoushan port were suspended on Wednesday until further notice.
The terminal is key to servicing shipments to Europe and North America.
Supply chains have already been majorly disrupted this year by crises such as the shortage of shipping containers, and the Suez Canal incident.
In June, Covid infections triggered disruptions at shipping hubs in Southern China, including the key Shenzhen and Guangzhou ports — the first time that China suspended operations at ports due to Covid cases.
“Container shortages were already straining global supply chains. Given that Ningbo-Zhoushan is the third-largest container port in the world, this shutdown makes an already bad situation much worse,”
Analysts warn that there will be further delays, and consumers will likely have to bear the costs as the holiday season approaches.
Container capacity will likely get more expensive, and shippers will likely pass costs on to consumers, heating up global inflation further ahead of the key holiday season.
Retailers will face much uncertainty heading into the holiday season, and inventory challenges will be one of them.
“Interruptions to trade not only pose problems for shipping and consumers, but also manufacturers who rely on critical imported components,”
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