The renewed tightening of COVID curbs in Beijing on Thursday has again tormented the expectations and sentiments for the supply chain. It is clear that the lockdowns are not easing out and the disruptions are continuing to keep supply chain professionals distressed.
Not only Shanghai was in lockdown, right now Beijing and its biggest harbour Tianjin is still in lockdown. All cities are so interlinked that it influences the whole of China. For instance, Shanghai is the main hub to produce car parts and Shenzhen is for assembly. Since no parts are dispatched to Shenzhen, nothing can get assembled and thus exports out of Shenzhen also experience slow down.
It has become particularly challenging to find open depots and moving units in Shanghai.
One of the prominent topics covered in the market commentary last week was the container prices continuing to decline in China while the average container prices globally improve (inthe month of May).
There is also a very interesting scenario building up for supply chain leaders trying to diversify their risks and trade blocs which will result into more complex trade lanes. Developing a greater control over the container flow is the biggest worries of the supply chain leaders worldwide as macro economic, geopolitical disruptions continue to torment the demand and supply balance of containers.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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