Fresh Outbreak Of Covid-19 Threatens Shaky Supply Chain

A fresh outbreak of Covid-19 cases globally is threatening to further weaken an already shaky supply chain, dimming hopes the delays that slowed production of everything from cars to gaming consoles in 2021 might abate this year.

- Kang Wan Chern

It also raises the likelihood of inflation and goods shortage for Chinese New Year on Feb 1.

Omicron is spreading in China as workers travel home for the festivities, with at least two major port cities, Dalian and Tianjin, facing operational disruptions after reporting cases last week.

Ships are now heading for Shanghai, causing growing congestion there and delaying schedules for container ships at a time when factories are closing for the festive period.

Even before the cases were detected in China, Maersk, the world’s largest shipping line, had told its customers in a Jan 11 advisory that the fresh wave of outbreaks is impacting its ability to move cargo and causing delays in customers’ supply chains. It added that trucking services in the port city of Ningbo have also been suspended due to restrictions.