China lockdown and logistics disruptions

The transportation and shipping outlook in China is looking bleak as the country is under COVID-19 lockdowns yet again. The Port of Shanghai – the busiest port in the world is facing major disruption as a queue of vessels carrying raw materials are stranded offshore. COVID-19 restrictions on truck drivers and a shortage of port workers are also causing disruptions resulting in shipping companies diverting shipments from the Port of Shanghai. Moreover, flight activity has drastically been reduced with the shutdown of Shanghai’s Pudong International Airport. The air freight is severely disrupted, with air cargo shipments limited only to essential goods.