· As the Shanghai shutdown continues analysts are concerned about the growing impending ripple effects to come. The closure of most of the city has lasted much longer than initially anticipated, and although not the first lockdown seen in China, the consequences being felt on the inland supply chain are staggering. Areas feeling this inland supply chain crunch are warehouses, factories, and truckers and as this lockdown continues the affects through the industry will be widespread.
· In the short term it should be noted that container carriers have in large part been able to sustain their planned schedules, however there is an increased likelihood of blank sailings and port omissions as the lockdown continues. A lower utilization on vessels should also be planned outcome according to analysts.
· Looking past the short term expected effects, market speculators have indicated they there is a strong possibility a portion of Shanghai production will relocate to avoid future long terms closures. As this occurs increased pressure could be felt at other Asian ports. This could be an effect that would last years past the current lockdown.
Friday April 22, 2022
Comments