West braces for Shanghai shock as zero-Covid nightmare ends
Sudden flood of ships from world’s largest port risks unleashing a crippling wave of inflation
An increase in supply from Shanghai is going to increase inflation in consuming nations?
It could be just weeks before Shanghai – a manufacturing superpower, and home to the world’s biggest cargo port – returns to life.
Thrown back into lockdown by Beijing’s disastrous zero-Covid strategy, the city’s reopening will have far-flung consequences for the global economy.
Experts say Shanghai’s reopening may unleash a massive wave of pent-up demand, sending a sudden flood of ships and containers to ports in Europe and the US’s West Coast, which still haven’t recovered from the last round of disruption.
“There is a risk of a tsunami of cargo coming out of Shanghai that could make a bad situation worse,” says Simon Heaney, a supply chain researcher at Drewry, the maritime consultancy.