podcast | Maritime chaos in Shanghai worsened by war and hits Beijing

The maritime traffic jam in China, mainly in the port of Shanghai, has worsened in recent weeks for the expansion of the omicron variant and for the war in Ukraine, which limits the possibilities when it comes to reestablishing global supply chains from complications like this. Since the start of the pandemic, the Asian giant has maintained its “zero covid” policy and strict confinement as a way to stop the spread of the disease. Those closures have paralyzed ports and practically entire cities. The difference, now, is the situation.

Núria Lacacigeneral secretary of the Spanish Shippers Association, explains to ‘La Información’ that its associates (including large companies such as Repsol, El Corte Inglés, DHL, Galp, 3M or Gullón) are already feeling the effects of the stoppage in Shanghai -the world’s largest port- on their exports. The ships with their containers are stuck. “We have merchandise anchored and waiting there,” she explains, and warns that towards mid-May and if the situation continues “all the boats and equipment will be there, so there will no longer be containers or ships to move our goods“.

In his opinion, the effects of this closure may be more severe than those of the past container crisis due to the concurrence of the war in Ukraine. While, Alicia Garcia Herrerochief economist for Asia-Pacific natixis, considers that the effects of this shock (which is not really a new situation for the country) are added to a macroeconomic environment that had already gone wrong for the second power in the world. Chinese growth has stagnated if imports are taken into account and the Xi Jinping government will have a hard time meeting the forecasts it had set.

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