Due to strict lockdowns in China and global shipping congestion, the global economy threatens to further worsen supply problems. According to the Kiel Institute for the World Economy and the Port of Rotterdam Authority, the number of ships sailing west from China has decreased. However, there is no fear that deliveries from China will come to a complete standstill.
London shipping consultancy Drewry estimates that 260,000 containers destined for export around the world were not loaded at the port of Shanghai in April alone. “A decrease in westbound freight volumes due to the lockdown in Shanghai is expected, but it will be limited,” said a spokeswoman for the port of Rotterdam.
Nevertheless, according to the German Mercator Institute for China Studies (MERICS), both consumers and industry will feel the effects. German retailers sold a wide variety of China-made products, from electronics to furniture and clothing to toys, said MERICS analyst Jacob Gunter.
Consequences will only be noticeable in a few weeks
Until last week, the Kiel Institute for the World Economy (IfW) found no decrease in import volumes in Rotterdam or Hamburg. But in mid-May, according to the IfW, freight volume in the Red Sea was nearly a fifth lower than would be expected in normal times. With the ships underway for several weeks, lockdowns in China are delaying deliveries from European companies as the ships are underway for several weeks.
“We assume that the situation will continue to worsen in the coming days and weeks as ships still arrived leaving the port of Shanghai before the closure,” explains Bertram Brossardt, general manager of the Association of Bavarian Business. “We will only feel the actual consequences of the lockdown in Shanghai for a while, but very drastically,” he fears.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
