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Covid-19 - latest impact on global supply chains

Recent weeks have seen new COVID-19 cases impact port operations at China’s 3rd largest port, Yantian, with a chain effect impacting surrounding ports including Hong Kong port.

While Yantian has been fully operational since last Thursday (24th June), it is expected to take several months to clear backlogs of cargo, especially with peak season approaching.

The domino effect of the Asia ocean freight issues has been felt across global supply chains, resulting in a worldwide struggle with container and equipment shortage, blank sailings, rerouting and an unprecedented increase in rates as well as impact on trucking, the industry is also struggling with the effect of COVID-19 outbreaks outside of China:

Vietnam:

Vietnam has seen a quick increase in COVID-19 cases with shipping lines and agents now working from home, lockdown zones and port restrictions having been put in place and some factories having closed, resulting in clients having to move production, slowing down an already pressurised situation considerably.

Indian subcontinent:

India’s continued fight with Covid-19 and its impact on local communities has affected what is one of the world’s players in importing and exporting considerably. With some ship owners going as far as seeking freight premiums for loading or discharging cargoes in India, delays in delivery of cargoes and a considerable increase in transportation cost has been the result. While Delhi and Mumbai are opening back up again, other states are still in lockdown.

South Africa:

South Africa has also seen a surge in cases, as a third wave of infections has reached the highest recorded numbers since January, which is thought to result in a more severe lockdown over the coming days as the local infrastructure struggles to cope.

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