China is enforcing continued COVID related lockdowns across the country, but the lockdowns in Zhejiang province are significantly affecting global supply chains. The lockdowns in Zhejiang province has forced the closures of factories and prompted new trucking restrictions.
New COVID cases have been reported in the cities of Tianjin and Guangzhou, which have included the new Omicron variant of the virus. However, the Zhejiang outbreak is the most serious. Battery, textile, and pharmaceutical manufacturers in Zhejiang have suspended operations according to Reuters reporting.
The suspensions include a key pharmaceutical hub in Ningbo. In neighboring Shanxing a partial lockdown has been instituted and only factories producing essential items and PPE are allowed to continue operating.
In addition to the suspension of operations, difficulties are further increased because truckers are reluctant to enter the area due to quarantine requirements. As a result, this has impacted the ability of manufacturers to reach the Ningbo-Zhoushan port with products ready to export.
There is optimism that outbreaks are under control despite the fast-moving developments in the area.
According to MarineTraffic, there are currently 30 container vessels waiting outside of Ningbo port.