Second Order Disruptions China COVID Lockdown Analysis

May 25, 2022

This new report from Interos looks at how China’s zero-COVID policy has impacted the global economy.

Key findings include:

  • Despite 76% of cargo being moved from ports by truckers, the road freight in China is
    operating at 20% capacity because of zero-Covid policies and binding government restrictions
    and regulations.
  • Vessels waiting outside of Chinese ports accounts for about 27.7% of all vessels waiting outside ports globally. The number of vessels outside Chinese ports increased by 195% since
    February 2022, almost doubling its congestion in the span of two months.
  • Road freight in China is an extremely fragmented and inefficient means of transporting goods
    as 90% of truckers operate individually and are subject to a myriad of restrictions that impose
    severe cost, logistical, and operational limitations.
  • Rail freight in China faces a shortage of shipping containers and present vulnerabilities to severe Covid restrictions, geopolitics, and trade fluctuations.

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