Port of Long Beach executive director Mario Cordero argues China’s zero-COVID policy will ‘definitely have an impact’ on the global supply chain.
China’s weeks-long COVID-19 lockdowns are posing a risk to the global supply chain, one West Coast port director warned on “Mornings with Maria” Thursday.
“We’re almost about one month, or four weeks, of those lockdowns in Shenzhen and Shanghai; it hasn’t really affected the ports,” Cordero told FOX Business’ Maria Bartiromo. “However, it has affected the supply chain in China.”
Shanghai is reportedly experiencing China’s largest COVID outbreak since the pandemic started. Residents have been instructed to stay in their homes, with anyone caught leaving risking possible punishment.
Cordero expressed worry that shutdowns among China’s factories and companies will have a direct impact here at home.
“I’m talking more specifically regarding the trucking operations and, of course, the issue of labor,” the port chief explained. “So that is concerning and that will definitely have an impact in terms of supply chain disruption here in the United States and in the global arena.”
Port of Long Beach in California. (iStock)
China’s zero-COVID policy could create more supply chain disruptions that stretch into the coming years, according to Cordero.
“If the zero-COVID policy continues in a rigid way that we’ve seen here in China, it could have those ramifications,” he noted. “I think what we can best hope for is that they control the lockdowns there and it does not spread to the ports in China.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
These latest supply chain concerns coupled with record-high inflation may soon hit Americans’ wallets, Cordero added.
“Certainly the cargo owners and the retailers are no longer holding back on passing that cost to the consumer,” the port director said.
Port of Long Beach executive director Mario Cordero says the next few months will be telling for the direction of the supply chain and economy.
Everyday items could get a lot more expensive if consumer demand remains high – or, especially, increases – while supply is low amid China’s uncertain quarantine trajectory, Cordero further warned.
“The appetite of the American consumer continues,” he said. “So the next couple of months are going to be telling.”
