China is locking down cities.

With their zero-COVID policy, China has locked down several industrial cities, such as Shanghai. To fight the viral outbreak that has occurred throughout China. Extending the supply chain issue even further, global demand for Chinese export has fallen due to the lockdown that has been put into place.

A cargo ship sailing with cargo.
Photo by Mika Baumeister on Unsplash

Supply chains are still affecting business.

Local businesses worldwide are getting hit the hardest by the supply chain issue that has been ongoing since the start of the pandemic. Smaller companies are getting hit the hardest as suppliers first fill out orders to bigger businesses.

Even so, large corporations are still getting a beating as well. Companies such as Nike and Apple are experiencing delays in getting their products out as they are still sitting in containers. Even more, pressing is shortages of materials needed to build equipment, devices, and vehicles.

Nike logo on the side of a building.
Photo by wu yi on Unsplash

Congested Ports

Ports are being contested worldwide, and major European cities have seen shipping delays more than double since Shanghai was put on lockdown. There are backlogs of goods waiting to be shipped out of China to various major cities. In Shanghai, the port is not operating, but there are not enough workers and truck drivers to bring the containers back inland to get them stocked up.

The U.S west coast is facing a dilemma; the USA is expecting a surge of imports in June once the lockdowns in China have been lifted. As a result, the west coast ports will be quickly overwhelmed, and port congestion is inevitable for the U.S ports. Furthermore, warehouses in the U.S are at a capacity with railways backed up with goods due to lack of equipment.

The supply chain issue will persist for another year, making it difficult for businesses and consumers to receive the goods they want.

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Eric Stortsworth
Eric Stortsworth has been a passionate student and scholar, interested in the world. He writes about many different topics adding a little twist of light hearted fun in his articles.

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