Port closures in Shanghai and Ningbo due to Typhoon Chanthu could disrupt trade worth about $14bn, according to analysis from risk modelling firm Russell Group.
Based on the day the ports closed on 12 September for a projected period of two weeks, Russell Group valued trade in and out of both Shanghai port and Ningbo at $7.5bn each.
Clothing worth $331m exported from Shanghai is expected to face “severe disruption” and computer equipment worth $361m is also expected to be disrupted, which could affect the availability of key goods ahead of the holiday season.
Suki Basi, CEO of Russell Group, said its analysis will “come as little relief” for corporate risk managers, supply chains, ship operators and (re)insurers. “[They] have seen disruption after disruption pile on top of each other in 2021,” Mr Basi said.
Mr Basi said Ningbo has closed twice in this quarter alone. “Rising port accumulation exposures across the global economy are a serious concern for businesses that rely on just-in-time supply chain methods,” Mr Basi said.