The impact of the shutdown in shanghai

Since March 28, Shanghai is still under strict lockdown. It brings tourism to a standstill, while retail, education, health services and more have all be forced to slow down. The impact on the transportation industry is particularly severe. Truck drivers from all over the country are required to comply with Shanghai's strict epidemic prevention testing and quarantine regulations, which have led to widespread queues and delays for trucks, driving up freight prices. Therefore, logistics companies are switching to the nearby Ningbo port or even the much further Qingdao port in an attempt to prevent supply chain chaos around the city.

“Trucking is the main issue we have,” said Mads Ravn, executive vice-president and global head of air freight procurement at DSV, one of the world’s largest freight brokerages. He added that “Basically everything else is not moving but is being diverted away from Shanghai to other parts of China. It’s affecting every commodity you can think of,” he said. “It will have a global effect on almost every trade.”

China is grappling with its worst coronavirus outbreak since it first emerged in Wuhan more than two years ago. Restrictions that were supposed to split the city in two for a staggered nine-day lockdown is unclear when they will be eased.