When several countries began to open up and relax health protocols, China even went into lockdown again due to the rising number of positive COVID-19 cases.
With China back in lockdown, the head of DHL Group’s Deutsche Post shipping business said China’s lockdown had a bigger impact on global supply chains than the war in Ukraine.
“After many countries normalize, long bottlenecks in US and European ports may occur. It will certainly take longer than we thought until the world trade system returns to normal,” said Tim Scharwath of DHL.
Scharwath said that global supply chain problems may be getting worse ahead of the Christmas shopping season until early 2023. Scharwath also said that China is the biggest producer, and almost all the products we use come from China.
If China does not recover quickly, there will be a shortage of goods and spare parts. In the electric vehicle industry, supply chain issues also impact the production of electric vehicle manufacturers.
Giga Shanghai briefly halted production following the lockdown imposed by the local authorities due to the increase in the positive number of COVID-19.