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Shanghai Implements Fresh COVID-19 Restrictions

New restrictions to curb COVID-19 in Shanghai included highway closures that are impacting exports from the city’s port, according to CNBC.

What’s happening: Trucks full of cargo and containers were unable to enter the port, leading to materials shortages for several companies. 

  • After the Shanghai highway closures, exporters were forced to turn to the Port of Ningbo and other smaller ports.
  • The Port of Ningbo is now dealing with increased congestion, which is likely to lead to additional shipping delays and materials shortages.

The affected areas: Residents in 15 of Shanghai’s 16 districts were ordered to be tested for the omicron variant this past weekend and five districts banned residents from leaving their homes.

  • “The districts include Pudong, home to Tesla’s gigafactory, Merck, Covestro, L’Oreal, Thermo Fisher, SC Johnson, Siemens, Bosch, SAIC-GM and Advanced Micro-Fabrication Equipment; and the specialty chemical manufacturing district of Xuhui.”

What they’re saying: “Production and manufacturing are basically resumed in Shanghai, but once there are quarantines, transportation and drayage are affected to a certain extent,” said the logistics company Orient Star Group.

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