Analysis:
For months, China has been using it’s 0 covid policy as a hybrid warfare tactics to fuel and ensue logistical and supply chaos upon Western nation. By merely reading the headlines here, you can pretty much tell it by sheer instinct.
If you read my previous posts ( Everything Shortage and Collapse of ), and the third headline, you can accurately deduce they have also used their energy problems and 0 policy to hinder manufacturing, specially because they got a huge internal surplus.
As I said for the last 3 months, the maritime freight costs ain’t getting lower anytime soon, as exemplified now by one of the biggest analyst entity of said field, you can expect similar or higher shipping costs for the entire year of 2022.
Also, as I forecasted months ago, with lower supply of energy and fuel, therefore fertilizers and chemicals to grow food, countries would use any type of excuse to hold their productions, because they can forecast trends and have entire companies doing it, and one or two are bound to find similar signals and do the proper work.
Out of desperation a few other countries can follow which will lead to even higher food prices.
And the last article, first sign of the contagion of Ever Grande going under, which will spread and cause cascade into the chinese economy first, then the entire global economy second, because banks like Citadel invested in them.
2022 bodes to be one hell of a year.
China is imposing quarantines of up to 7 weeks for cargo ship crew, and it's bad news for the supply chain
China is imposing mandatory quarantines of up to seven weeks for returning Chinese seafarers.
Crew changes are getting more difficult due to stricter government requirements, says the Global Maritime Forum.
Ships are rerouting to work around China's restrictions, prolonging shipments.
China’s covid-zero lockdowns loom over the global supply chain
A new covid-19 lockdown imposed last week (Dec. 7) in the port city of Ningbo, China, is raising the specter of further disruptions to an already battered global supply chain.
There are more than 200 cases so far in the most recent cluster in the manufacturing province of Zhejiang, which includes the city of Ningbo. The outbreak is said to be spreading “relatively rapidly,” and has led to the closures of dozens of factories. So far, the lockdowns have restricted trucks going in and out of the port, slowing operations. While there are no reports yet of the port closing, the lockdown, combined with weeks of intensifying covid-zero restrictions, is worrying logistics professionals. 2
Maritime news. 4
Following early forecasts that ocean freight contract rates were likely to come in at much higher levels for the year ahead, shippers are now reporting that carriers are presenting difficult choices in their tenders for 2022. Analysts at Xeneta, the rate benchmarking and market analytics platform are reporting that the first contracts for 2022 are reflecting record-high levels ahead.
Argentina Limits Grain Exports in Fight Against Food Inflation
Argentina is putting a ceiling on exports of corn and wheat in a fresh bid by the leftist government to quell food inflation at home. 5
https://www.businessinsider.com/shipping-supply-chain-crisis-long-china-covid-quarantines-2021-11?utmSource=twitter&utmContent=referral&utmTerm=topbar&referrer=twitter
https://qz.com/2101722/china-covid-quarantines-lockdowns-impact-global-supply-chain/
https://www.reuters.com/markets/commodities/exclusive-hsbc-says-clients-must-have-plan-exit-coal-by-end-2023-2021-12-14/
https://maritime-executive.com/article/xeneta-record-high-ocean-freight-contract-rates-continuing-in-2022
https://www.bloomberg.com/news/articles/2021-12-17/argentina-limits-grain-exports-in-fight-against-food-inflation?cmpid=socialflow-twitter-business&utm_medium=social&utm_source=twitter&utm_campaign=socialflow-organic&utm_content=business
https://www.reuters.com/markets/commodities/chinas-property-distress-sours-steel-sector-warning-sign-economy-2021-12-19/?taid=61be95a792a8110001a4522a&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter