GET READY! The ‘mother of all supply chain shocks’ looms as China closes major ports due to pandemic
As if there weren’t enough bad economic news: The War Room opened its first hour on Friday warning viewers about the upcoming “mother of all supply chain crises.”
Zero Hedge reported on the upcoming Biden crisis on Thursday.
And, as we’ve also discussed in recent weeks, a place where this slowdown in growth is emerging, in addition to the upcoming deterioration in US consumption, its “covid-zero” policy in general, and its ports blocked by covid in particular. .
But what was until recently a minority opinion confined to our modest website has since expanded and, as Bloomberg writes overnight, the effects of restrictions on China while the country maintains its zero-covid policy. “They are beginning to affect supply chains in the region.” As a result of the slow movement of goods through some of the country’s busiest and most important ports, shippers are now being diverted to Shanghai, causing the kinds of chain delays at the world’s largest container port that led to bottlenecks. bottle of massive congestion last summer that finally resulted in a record number of container ships waiting off the coast of California, a glut that has not been eliminated to this day.
TRENDS: Indígena carried his father for hours through the jungle to get vaccinated against covid-19; then the father dies weeks later
With shipping schedules already facing delays of about a week, carriers are warning of the impact on already delayed gateways in Europe and the US. HSBC economists warn that the global economy could be headed for the “mother of all” supply chain crises If the highly infectious omicron variant that is already flooding much of the world economy spreads across Asia, especially China, then manufacturing disruption will be inevitable.
“Temporary, one would expect, but hugely disruptive nonetheless.” in the coming months, they wrote in a research note this week first pointed out by Bloomberg.