(Bloomberg) China’s closure of the port of Ningbo-Zhoushan has caused speculation that the volumes at the Port of Los Angeles will go down considerably, and other ports globally may follow suit.
Following the port closure, there are speculations that firms are chattering ships to add Covid contract clauses as insurance against paying for stranded ships.
Businesses fear that other ports may follow suit due to the rising cases from the delta variant, which may result in logistics challenges.
Ningbo city’s health commission still maintains that it is still a low-risk virus area despite flights to and from Beijing being canceled.
Container prices have since gone up by over 220%, with a benchmark container shipping cost from Shanghai to Los Angeles at $10,322 this week.
CSI 300 is down -0.55%, USDCNY is down -0.01%.
