Declining world supply chain pressures are being challenged by new disruptions in China tied to the coronavirus pandemic, the New York Federal Reserve reported on Friday. The easing of China’s restrictions has resulted in a massive wave of coronavirus infections, which threaten to keep pressure on the ability to ship goods out of China. Freight booking cancellations are increasing at the ports of Shanghai and Shenzhen as “factories cannot operate properly due to a lot of workers getting COVID.” Congestion is also building off of the Ports of Ningbo and Qingdao as well, per Chinese logistics company HLS. Qingdao, the sixth-largest port in the world, is reported as having factories with only “1/4 labor force and can not ensure normal production.” Logistics managers are warning of very soft volume after the Lunar New Year with cancelled or delayed bookings for the 2nd half of January and early February.
