Coronavirus-related restrictions in China could lead to disruptions in the country, which in turn will hold back the recovery of the global supply chain, said Parash Jain, head of shipping at HSBC.
"If we talk about trade, any failure in China from the zero tolerance policy for coronavirus can negatively affect the entire global supply chain," said Jane, and recalled that the recent surge in cases of coronavirus has led to blockages and restrictions in China's largest port hubs.
Since the beginning of the pandemic, China has reacted harshly to the detection of cases of coronavirus, sometimes closing entire factories or ports as a result of a single case. The government has also imposed strict quarantines and travel restrictions to combat outbreaks. However, all these measures have put pressure on manufacturing and transportation operations around the world, exacerbating the supply chain crisis. Meanwhile, the spread of the Omicron strain has increased fears that the shipping industry could be hit again.
"Due to the pandemic, some of the major container shipping lines are trying to control the entire supply chain more strongly, increasing investments in ground logistics and terminals. Overall, the latest disruptions are likely to force carriers to rethink their working methods," said Jane.