How China's "Witless" Zero-Covid Policy Is Impacting Global Trade

Covid In China: China is going through its worst outbreak and therefore the increase in freight charges could create economic repercussions on global trade as well.

China's infamous Zero-COVID policy is not only harming the Chinese citizens but is also posing a significant threat to the world as the country's 'witless' rules have left hundreds of cargo ships stranded on the ports which will impact freight costs and global inflation.

Maersk, the world's second-largest shipping company, has suggested that the lockdown will severely impact truck services and transport costs would perceive a rise at an unexpected level. It is said that 90% of the world's goods are carried oversea.

As freight charges increase it could cause a negative economic spillover on global trade. Businesses will not tolerate this unfortunate development and they will divert the cost on customers, reported Inside Over.

Due to heavy traffic restrictions at the Shanghai port logistics companies have advised vessel operators to offload the products at other ports.