400 cargo ships waiting at the port

400 cargo ships waiting at the port

Five hundred ships lined up to enter the port were never seen. Massive traffic congestion reduces drug production in India (the world’s largest drug producer) and reduces the number of cars baked from American and European assembly lines. As if the war in Ukraine wasn’t enough, an astonishing bottleneck has formed in front of an airport Shanghai, the main port in China and in the world where four million tons of cargo pass each year, is unleashing a kind of perfect storm on production chains in half the world. the case? The Corona virus disease-19, what else? virus in China The anger also continues because the Beijing authorities maintain a very strict line against Kusid, expressed in the form of full closure The fatality resulted in 25 million people in Shanghai being confined to their homes (12 in fact they could only move in their neighborhood), despite the very low death rate of only 7 deaths from Omicron.

domino effect

calendar? China is shaking major global production chains. Of the 477 merchant ships counted on April 11 off the coast of Shanghai, dozens are being loaded with refined metals and others are waiting to load materials ready for commercial distribution: the unloading and loading block launches a giant domino. Delivery delays are beginning to be unpredictable and prevent companies from meeting deadlines for manufactured goods or components and stores from offering some merchandise. All the logistics world suffers from this, as trains from the ports of other continents leave half empty, and the prices of containers and transport that rise and fall no longer according to the classical law of supply and demand but on the basis of unpredictable logic. for its simple availability. To get an idea of ​​the crazy stage in logistics, suffice it to say that renting a 40-foot container from Shanghai to Rotterdam until last summer cost no more than $2,000, and then in the fall prices rose to a dollar. 13,000 … and today they are swinging on similar numbers.
So finding ingredients for medicines is starting to be a big problem because China manages 70% of global production of molecules (the active ingredient for each drug). Not only. The tragedy of the semiconductor shortage in automobiles has reached unimaginable levels.
There is no car manufacturer in the world, but especially in the United States and Europe, it did not have to stop production for a few weeks. Even in Italy, Stellantis had to stop production at the huge Melfie plant that produces the Jeep Compass, Renegade and 500X, due to a lack of electronic components.
Goods scarcity is slowly forming what economists refer to as a “supply crisis.” In practice, the goods produced by the industry are much less than those required and this phenomenon fuels inflation. In addition to the increase in the prices of raw materials, for example, car price lists are rising because demand is still strong but no factory is able to produce more and thus the pressure of competition on prices has faded, while the profits of car companies have never been so fat.
The word “virus-locked” has appeared everywhere in factories around the world. Which is even more paradoxical if we consider that both Europe and the United States are quickly abandoning the emergency phase of Covid.

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the two reasons

Yes, but why does China continue to hold the tight streak of lockdown long abandoned by the West? Observers offer two interpretations. The first is technical: the Chinese Sinovac vaccine, even if administered to a large part of the population, is much less effective than similar Western products. The second explanation is related to the imminent re-election of Xi Jinping to lead the country. A syllable in the Chinese mentality is synonymous with stability. Therefore, changing the line in the management of infection is not allowed because it is synonymous with instability: the population can be convinced that the hard line that has been adhered to since the beginning of the infection was not correct. With unpredictable consequences in a country that claims the superiority of its powerful political system over the continuing vicissitudes of Western democracies. Globalization, which has helped China so much, has been put on standby for the time being. at the moment.

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