China’s covid outbreak already wreaking havoc on supply chains

A fresh wave of Covid infections in China has struck shippers at just the wrong time. Post-Chinese Lunar New Year, manufacturing output was steadily on the rise in China, giving cause for fresh optimism. However, this latest development has burst the bubble of retailers who were using this period to replenish stocks and build safety inventories.

China’s no tolerance policy to COVID is a major threat to stabilising global supply chains. The stop-start nature of mass lockdowns in the face of relatively minor outbreaks, means that global manufacturing could be shuttered at a moment’s notice.

With fuel prices hitting record highs and inflation through the roof, further disruption in the supply chain is the last thing that companies and consumers need right now. Sharing data and information between stakeholders will be critical for all as supply chains manoeuvre through disruptions and growing uncertainty.

 

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