With Shanghai at a standstill, supply chain problems are compounding

Concerns are rising that Shanghai’s lockdown is only the beginning of months-long challenges.

After just over two years of a largely successful “zero-COVID” policy, China is facing its biggest test to date in the metropolis of Shanghai and the supply chain headaches that come with a massive lockdown.

On Monday morning, the city reported a record number of more than 25,000 new cases, according to state media. Officials have begun easing the lockdown for some areas despite the high case numbers, but the majority of the city remains immobilized.

Meanwhile, supply chain problems are compounding. Costs are rising and inputs can’t be transported to factories. Trucking has slowed to a near standstill. As cases continue to climb and disruptions extend, executives and analysts are getting increasingly anxious about the scale of the lockdown’s impact on global supply chains.

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