A Covid outbreak that partially shut down one of the world’s busiest container ports is raising concerns that the rapid spread of the delta variant will lead to a repeat of last year’s shipping nightmares, reported Bloomberg.
The Port of Los Angeles, where volumes dipped because of a June Covid outbreak at the Yantian port in China, is bracing for another potential decline because of the shutdown of a terminal at the Ningbo-Zhoushan port in China, a spokesman said.
Anton Posner, chief executive officer of supply-chain management company Mercury Resources, said many companies chartering ships are already adding Covid contract clauses so they can avoid paying for stranded ships.
Just as things seemed to start calming down, “we’re now into delta delays,” Emmanouil Xidias, partner at Ifchor North America LLC, said in a phone interview. “You’re going to have a secondary hit.”