The latest lockdowns imposed by China to curb a rapid rise in COVID infections threaten to disrupt supply chains and worsen the already tight supply situation in the container market. CNBC-TV18 spoke with Gujarat Pipavav Port General Manager Jakob Friis Sorensen to understand the impact.
Sorensen said: “It’s been a perpetual situation almost for two years. We had traffic jams on the west coast of the United States and in many other places in Europe. We lacked drivers, etc. So this is just one of the many things that continue to plague the industry. Usually that ties up ship capacity, and of course when you shut down a very important Chinese port, that’s bound to have a domino effect in the system.
He added: ‘I don’t think we will see an impact, but for the system as a whole and for the ships that go between Asia and India, there will be some impact because, again, everything is linked. So when you have a disruption in China, it has such a domino effect that it spills over to many other shipping companies.
Sorensen said the other big disruptor is the Ukrainian-Russian crisis.
For the full interview, watch the attached video.
First post: STI