Omicron outbreaks have exacerbated shipping congestion across the globe, with major Chinese and U.S. ports affected. Experts forecast that supply chain bottlenecks will continue into at least the second half of this year. With a fresh wave of COVID-19 outbreaks spreading in China, Chinese Communist Party (CCP) officials have launched mass lockdowns and testing, driven by the central government’s “zero-COVID” policy. Consequentially, major manufacturers have closed their plants, triggering labor shortages and blockages at ports. Economists warn the potential impact of the current pandemic could be alarming as more challenging bottlenecks are likely to surface in the future. Bloomberg reported on Jan. 13 that after the COVID-19 outbreak in Chinese port city Ningbo, shipping firms ordered their cargo vessels to turn to Shanghai to avoid delays, causing overcrowding in the world’s largest container port. Meanwhile, Ningbo, the world’s third largest container port, suspended part of its freight services while some …
Port Congestion Worsens as Omicron Variant Exacerbates Global Supply Chain Crisis
January 24, 2022
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