China’s coronavirus lockdowns could trigger ‘shock waves’ across global supply chains

Another major port lockdown in China could have a ‘phenomenal’ impact on global supply chains still recovering from two years of pandemic-related setbacks

Strict virus-containment efforts by local governments will weigh on cargo movement inside and out of China, while raising shipping prices, logistics experts say

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Lockdowns in China are likely to knock back the global supply chain recovery. Photo: AP

Published: 9:30pm, 14 Mar 2022

Rising coronavirus cases in China, including in economic powerhouses Shenzhen and Shanghai, are stirring fears about severe disruptions to the global shipping industry and supply chain, according to industry insiders.

As the country grapples with its most severe outbreak since the initial wave in early 2020, Beijing has doubled down on its “dynamic zero-Covid strategy”, prompting local governments to impose stringent prevention measures, including lockdowns.

On Sunday, 19 out of 31 mainland provinces reported local infections, with recorded daily infections across the country reaching 2,243.

Experts have warned that strict containment efforts by local governments will weigh on cargo movement inside and out of the country.

Lockdowns in China will further reduce capacity and cause a surge in already inflated shipping prices

Johannes Schlingmeier

“Lockdowns in China will further reduce capacity and cause a surge in already inflated shipping prices,” said Johannes Schlingmeier, co-founder and CEO of Container xChange.

“The shock waves will be felt across the US and America, and almost everywhere in the world.”

China’s tech hub Shenzhen in the southern province of Guangdong entered a de facto lockdown for this week, when three rounds of mass testing will be conducted.