Covid Outbreak Puts China On Go-Slow

China faces its biggest Covid challenge since the initial outbreak in Wuhan, with around 17 million people being placed under lockdown since the weekend.

The country has operated a strict no-tolerance approach to the virus, but after reporting 3,300 cases yesterday, hot spot lockdowns have been instigated in provinces throughout the country.

The latest outbreak is expected to lead to major disruption for logistics in China, most notably in the areas of Shanghai and Shenzhen. While local ports remain open, factory workers in these regions have been forced to work from home and truck drivers are now operating under stringent testing conditions. These new measures are effective immediately and continue for at least the next week.

Many other ports and regions have been moderately impacted by the lockdowns and we expect output to be slow in the short term.

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