Input Stories

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.

Dealing with your own supply chain issues? Identify alternate providers of the materials you need with CONNEX Marketplace, the SaaS platform connecting U.S. manufacturers, primes, suppliers and government buyers. New users can enjoy a free subscription for the first year with code CM1YR22NAM. Visit connexmarketplace.com to start.