A terminal has been closed at the Ningbo-Zhoushan port in eastern China, the world’s third busiest, halting all inbound and outbound containers due to what it described as a “system disruption” in a statement, but is likely due to an employee at the terminal testing positive for Covid-19, according to a Bloomberg report.
The terminal accounts for about 25 percent of container cargo through the port and is the second recent shutdown at a Chinese port due to Covid-19 infections, after the closure of Yantian port in Shenzhen from late May for about a month.
That closure lifted soaring freight rates, which are at record levels and a source of inflation. It’s feared this latest disruption will further strain supply chains and cause prices to rise even further.
An extended halt at the Ningbo-Zhoushan port could have particularly serious consequences, impacting supply for Black Friday and holiday season shopping in the West.
Between factory lockdowns and a shipping crunch, the pandemic is making it difficult for brands to take advantage of surging demand. BoF spoke with experts about how to make the best of a bad situation.