The world trade was predicted the hardest test because of one port

The closure of one of China’s busiest ports, Yantian, has created a global problem in global trade. This is reported by Bloomberg with reference to the vice president of Flexport Inc. Nerijus Poskus.

It is noted that the global shipping industry, plagued by pandemic shocks, inflationary pressures, and supply delays, is facing the most serious test of strength.

So, at the end of May, it became known about the closure of the port of Yantian due to a new outbreak of COVID-19, which, however, was supposed to work again a few days later. However, now the terminal has announced plans to restore work only by the end of June.

Taking into account the recent incident with the blocking of the Suez Canal, it can be predicted that it will take several months to restore the normal operation of the port, writes Bloomberg. It is emphasized that the reason for this will be the accumulation of a large number of goods.

“The situation in Southern China is another series of disasters that have hit the global supply chain,” said the vice president of Flexport Inc.

According to him, it will take six to eight weeks to clear the congestion in Yantian. This is a concern, as supply problems will persist during the peak demand period in the US and Europe, he added. As a result, the cost of shipping increases, which slows down world trade and can accelerate the rate of inflation.

According to the agency, currently, 139 container ships are moored off the coast of China, which is 50% more than the average from mid-April to early May.

According to research firm Drewry Shipping, container prices on several routes continue to rise, and in some cases, they have exceeded last year’s figures by seven times.

At the same time, experts predict lingering capacity problems in the world’s ports, helped by record-high export figures from China, as well as the opening of the US and European economies after the pandemic.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

Spelling error report

The following text will be sent to our editors:

39 number 0.440948 time