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China's Covid outbreak affects factories and ports, and global supply chain problems are c

2022-01-13 15:35:13

With discovering the epidemic in some city of China, the government imposed a city closure and conducted nucleic acid testing for all employees not seen in nearly two years. 


Affected by this, major manufacturing companies have closed local factories, ports face a backlog of goods, and there are problems with workforce deployment. 


Companies including chipmaker Samsung Electronics, Volkswagen and company that supplies Nike and Adidas have experienced disruptions.


Since late December 2021, officials have taken measures to deal with the outbreak of the epidemic in several Chinese cities, including the eastern port city of Tianjin, the central city of Xi'an and the southern technology hub of Shenzhen.


At Ningbo-Zhoushan Port, the world's third-largest container port by throughput, south of Tianjin, more than 20 confirmed cases appeared in the surrounding area. Truck and warehouse operations at the port were restricted, and the cargo backlog was at risk of worsening.


In Ningbo, suppliers of global sports brands such as Nike, Adidas and Uniqlo said some production sites were closed from January 3 after 10 cases were detected in Ningbo. Some production had resumed operations as of Monday.


Employees of Apple's supplier Foxconn Technology Group were also tested for the coronavirus in southern Shenzhen.


According to a study by a supply chain consultancy, a one-week delay at the port of Ningbo, south of Tianjin, could affect trade worth $4 billion, including $236 million in integrated circuit boards and $125 million in apparel exports Russell Group. A container terminal at Ningbo port was closed for two weeks after a case was detected in August.


"The effects of omicrons on us are not too big, but they came sooner than expected. We have to learn to face it anyway."