On Wednesday of this week, China closed a crucial terminal at its Ningbo-Zhoushan port, the third-busiest port in the world, after positive COVID-19 tests of workers. This occurred at the same time that nearby Shanghai ports are seeing their worst port congestion in three years, according to Reuters.
These shutdowns come when shipping rates are already significantly elevated, putting pressure on companies that rely on goods from overseas, and forcing prices for key products like electronics, food, and furniture even higher.
Shipping container rates from China and East Asia to the West and East coasts of the US have jumped over 270% and 220%, respectively, this year, according to the Freightos Baltic global container freight index.
Global supply chain disruptions are now the norm, not the exception, which is causing more companies to implement localization strategies. NAC is working with Siemens and Deloitte Consulting to help companies localize their manufacturing and supply chains, because global shipping won’t improve anytime soon.