While China’s recent COVID-19 lockdowns are sparking concerns about another massive shockwave through global supply chains, some industry analysts and insiders are anticipating minimal impact as Shanghai — home to the world’s largest container port — begins to ease lockdown measures, reports Yahoo Finance.
Ripple effect possible?
“When those ports do come fully back online, there might be a little ripple effect, but… the data is telling us right now it’s going to be short-lived,” Lucas Falasca, enterprise account executive at Freightwaves SONAR, told Yahoo Finance. “It’s not gonna send like a giant ripple through the supply chain… like we saw COVID do. It might be something that’ll be smoothed out over a couple of weeks.”
Freightwaves SONAR data showed that ocean bookings are down year to date, signaling fewer shipments, which suggests less demand for goods from China.
“The capacity for these ocean lines hasn’t tightened up as much as it has in the past even though ports don’t have the capacity that they traditionally have,” Falasca said. “That would basically tell us that there’s just less demand for freight from China to the U.S. right now.”
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Source: Yahoo Finance
