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Supply Chain Concerns as China Partially Shuts Another Port

Fashion retailers are rerouting goods away from congested West Coast ports, but supply chain problems persist.
This is the second Chinese port closure in recent months and there are concerns an extended halt could impact supply for holiday season shopping. Gary Hershorn/Getty Images. (Gary Hershorn)

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.

Learn more:

How Fashion Can Tackle Its Supply Chain Crisis

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.

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