A port logjam at the “World’s Factory” will soon impact global trade
Another looming crisis is headed for global ports. Traders fear an even worse traffic jam as a result of lockdowns in Shanghai.
The city of 25 million is commonly called the “World’s Factory.” Vehicle and electronics production has stopped. At last check, nearly 250 containers ships were waiting to get into Shanghai.
Financial advisor Rebecca Walser explains when we can expect to see the impact here: “I listened to a global shipping expert who’s done the marine tracker... The red ones... are the oil tankers and the green ones are the cargo ships, and they’re saying that this is going to be in two to three weeks at our stores. That we are going to see empty shelves and that those things that are empty are going to take two to six months, Scott, to return to normalcy. So, Americans need to hear this message and they need to prepare.”
Some analysts say that the supply disruption from Shanghai will cause global inflation to spike and cause port backups the likes of which we have not yet seen. Walser said that the HPAI outbreak and the cost of fertilizer will also greatly impact the global food chain.