How Covid-19 disrupted Chinese export performance Temporary Edge Protection Systems

Shanghai lockdown stokes global supply chains anxiety.

A serious illness in Shanghai, 25 million Shanghai residents locked inplace.

Johann Wuttke, president of the European Union Chamber of Commerce in China, said freight volumes in the world’s largest manufacturing nation were falling sharply. “If China gets a little cold, the rest of the world’s supply chain gets a big one” he said.

Shanghai is the world’s largest container port, handling more than 20% of China’s import and export trade last year.

The number of container ships waiting at the port of Shanghai and nearby Ningbo,Zhoushan etc has more than doubled since early April and almost tripled from a year ago, according to the survey.

The traffic jam is mainly the result of truck delivery to Shanghai being blocked.

Ships carrying metals such as copper and iron ore have to wait inplace because trucks cannot move goods from the port to processing plants,also thousands of manufacturers in Shanghai City,Jiangsu Province,Zhejiang Province etc can not get the raw materials for production and their warehouse is full of finished cargos that can not ship out.The European Chamber estimates that shipping and trucking companies are experiencing long delays and that cargo volumes at the port of Shanghai are down about 40% from pre-lockdown levels.

Japan has learned a more painful lesson about the Chinese supply chain than South Korea.

When COVID-19 broke out, Japanese companies were unable to ship masks to Japan, even though they were producing them in factories in China.

It is because of this painful realization that Japan has long put supply chain restructuring on the agenda, ahead of South Korea in putting supply chain safety first.

In recent years, a number of Japanese companies have moved factories from China to Southeast Asia, India and Africa.

In addition to the most affected Japan and South Korea, Southeast Asia and Europe and the United States, the impact is not small.  China is at the upper end of the industrial chain in Southeast Asia and the lower end of the industrial chain in Europe and the US Temporary Edge Protection Systems.

The U.S. Consumer price index rise to a 40-year high of 8.5% in March from 7.9% in February, according to labor Department data released April 12.  Us prices have been rising and inflation has been above 6% for six consecutive months, well above the Fed’s average 2% target.

It used to be that shipping from China to South-east Asia was one of the cheapest in the world.

However, the recent surge in demand from Southeast Asian countries has led to a rise in freight rates on this route, with some heavy containers rising by more than 50%.  Among them, Vietnam is particularly prominent.

Freight to Ho Chi Minh City, Vietnam, now costs more than $1,800 per tall container, and even more to Haiphong.

Shanghai is not only the Shanghai of the Chinese people, but also the Shanghai of the whole world Safety Guardrails.

Shanghai, which gradually came to the fore in modern times, now become one of the largest ports in the world with advanced manufacturing capabilities. The City cluster in the Yangtze River Delta where it is located has the most complete manufacturing supply chain in China and even the world.

It can be said that it is the supply chain advantage created by Shanghai’s long-term linkage with the Yangtze River Delta that makes it the reality that Shanghai has the most advanced manufacturing cluster in China Fall Prevention Systems.

Fortunately,after a brief period of static administration,the well-known Shanghai is “COME BACK”!