third busiest port in China, Ningbo-Zhoushan (NZ), is currently going through a
partial lockdown. There are new rules for quarantining ships with
COVID-19-positive crew members for 21 days. These measures are disrupting the
supply of critical machine parts to Indian makers of electronic goods and
NZ is an
important port of origin for a range of containerised shipments including
solar, auto parts and white goods.
feel that the disruptions and associated additional costs will make new models
costlier and affect the automotive industry in the longer run. Shipping costs
have risen four to five times since the start of COVID-19, and the latest issue
will lead to a further increase.
supply chain disruption will affect the availability of critical parts like
semiconductors and television panels for manufacturing home appliances,
television and mobile phones. Companies were diverting shipments to other
terminals in NZ and surrounding ports.
China will be
closed in its Golden Week of October 1-7, 2021, leading shipping companies to
move maximum cargo before that to meet festive demand in India.
president of the Automotive Component Manufacturers Association (ACMA), said
that the impact of the recent lockdown at NZ is yet to be gauged.
Source – The Economic Times
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