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‘Companies are beginning to panic’: Experts say China’s lockdowns will make inflation and the supply chain nightmare even worse
Fortune ^ | 4/23/22

Posted on 04/23/2022 4:06:07 PM PDT by EBH

A supply chain nightmare

One in five container ships is now stuck at ports worldwide, with 30% of the backlog coming from China. And Lars Jensen, the CEO of the shipping container industry consulting firm Vespucci Maritime, told Fortune that the full impact of China’s policies will only begin to reveal itself over the coming weeks.

“Companies are beginning to panic. The downstream impact is coming, and it’ll be heavy.” John Bree, the chief risk officer at Supply Wisdom, said. “The latest China lockdowns combined with the Russia-Ukraine war is too heavy a burden. The global chaos is going to further exacerbate disruption and take inflation to a new level.”

Bree’s statement is backed up by recent reports from investment banks, which are also warning of the economic impacts of China’s lockdowns. Bank of America analysts led by Ethan Harris said in a note to clients on Friday that it’s yet “another adverse supply shock for the global economy” that will weaken growth and extend the period of high inflation.

And Dylan Alperin, head of professional services at the supply chain software firm Keelvar, noted that transportation costs make up 7.7% of global GDP, which means delays at ports typically lead to rising inflation.

“The freight cost for a single container from China to the U.S. went from $5,900 last year to $15,764 today,” Alperin said. The impact of those price increases alone could significantly drive inflation up globally, he added.

(Excerpt) Read more at fortune.com ...


TOPICS: Chit/Chat; Food
KEYWORDS: china; lockdowns
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To: EBH

It’s amazing to me how fast the Democrats have F’ed up the entire world.


21 posted on 04/23/2022 6:25:22 PM PDT by Newbomb Turk
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To: EBH

Don’t buy anything from China.


22 posted on 04/23/2022 6:28:41 PM PDT by OKSooner (Fire Kevin McCarthy and his boyfriend Luntz, and fire Mitch too. Not next week, do it right now.)
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To: EBH

All part of “the plan”.


23 posted on 04/23/2022 6:33:48 PM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: Newbomb Turk

It truly is amazing.


24 posted on 04/23/2022 7:33:15 PM PDT by EBH (Hold My Beer. 1776-2021 May God Save Us.)
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To: EBH

So who will Democrats blame? Trump? Putin? Or both?


25 posted on 04/23/2022 7:49:34 PM PDT by AlaskaErik (In time of peace, prepare for war.)
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To: Fai Mao

But the little darlings now a days do not want to work. So manufacturing if it ever came back would have a hard time finding reliable workers.


26 posted on 04/23/2022 8:19:31 PM PDT by winterystorm
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To: winterystorm

“But the little darlings now a days do not want to work. So manufacturing if it ever came back would have a hard time finding reliable workers.”

I think more would work than you think. But, if they didn’t, then build the factories in South Texas, and let the Mexicans walk across the border every day on a work visa.


27 posted on 04/23/2022 9:07:55 PM PDT by Fai Mao
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To: winterystorm

Robots. Until they attack us. Illegals already attack us, so robots are better.


28 posted on 04/24/2022 12:12:29 AM PDT by HYPOCRACY (This is the dystopian future we've been waiting for!)
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To: winterystorm

... manufacturing if it ever came back would have a hard time finding reliable workers.
_____________

Scarcity, hunger, lack of physical comfort and some experience with having to make/repair things or do without could change that.


29 posted on 04/24/2022 7:46:33 PM PDT by reformedliberal (Make yourself less available.)
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