Partial closure at China’s Port Ningbo adds to global supply chain woes, threatening $172 billion of goods - Russell Group
China’s partial closure of the port of Ningbo threatens $172 billion’s worth of global trade and the export of $39.2 billion’s worth of Integrated Circuit Boards (ICBs) according to analysis by Russell Group’s ALPS Marine platform.
The closure comes at a time of great strain on global supply chains. Disruptions at Yantian and Suez have delayed schedules and meant that organisations are scrambling to secure key commodities for their products: a problem that will develop as the port will only accept containers within two days of a ship’s estimated arrival time.
There is concern the disruption may have a large impact on the holiday season, particularly in the US. Ningbo exports 22% or $16 billion worth of exports to the US annually.
Further Russell analysis shows that 11% or $8.3 billion goes to Long Beach, which is experiencing a large surge in demand with a backlog of ships waiting to enter the port.
Russell Group CEO Suki Basi commented on the events at Ningbo: “The closure of Ningbo comes hot on the heels of the recent disruption at Yantian and both serve as a timely reminder to organisations and (re)insurers alike of the fragility of global trade.
”Fragility that means that any slight disruption to the network of trade, whether that be a closure of a port or a blockage of a shipping route, creates chaos for shippers, global supply chains and ultimately consumers.”
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