China’s Zero Tolerance To COVID-19 Is Choking Supply Lines

Several Chinese ports are facing congestion as vessels due to call at Ningbo are being diverted and cargo processing is slowed partly due to stricter disinfection measures under China’s “zero-tolerance” coronavirus policy.

On Tuesday, more than 50 container vessels were queuing at Ningbo port, China’s second-largest marine center, Refinitiv data showed, up from 28 on Aug. 10 when a COVID-19 case was reported at one of its terminals.

Leading international shipping groups have warned their clients of delays and route adjustments. At least 14 vessels operated by CMA CGM, five Maersk vessels and four Hapag-Lloyd ships have decided to skip Ningbo, while dozens of vessels are adjusting their schedules, the shipping groups said.

China’s economy is losing momentum as a result of new coronavirus restrictions and global supply chains face further strains with the curbs adding to queues at major Chinese transportation hubs, already stretched by a resurgence of consumer spending, shortage of container ships and logjams at ports.

Source: GCaptain

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