DHL executive says lockdowns in China will affect supply chains more than war in Ukraine

BERLIN, May 23 (Reuters) – Lockdowns in China are having a bigger impact on global supply chains than the war in Ukraine and will be felt even after they are lifted, the head of Deutsche Post Group’s freight business said. DHL (DPWGn.DE).

China renewed COVID-19 shutdowns in major centers in March and April, affecting production and consumption and increasing risks for parts of the global economy heavily dependent on the country. Read more

“After an opening, traffic jams will likely form outside US and European ports,” DHL’s Tim Scharwath told Reuters, adding that “it will take longer than expected for the trading system to normalize again.”

Join now for FREE unlimited access to Reuters.com

Register

He said global supply chain issues were likely to persist beyond the crucial Christmas shopping season and into next year.

“China is the workbench of the world,” Scharwath said. “All goods, from high-tech to fashionable, are affected by developments in Shanghai,” he said, adding that how quickly China lifts all restrictions will be crucial.

Shipments normally arrive in Europe and North America bit by bit, Scharwath said, adding that a flood of containers could overwhelm ports unless China gradually ends blockages.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Matthias Inverardi Writing by Miranda Murray and Zuzanna Szymanska Editing by David Goodman

Our standards: The Thomson Reuters Trust Principles.

About Ryan Headley

Check Also

Following the Fed goes out of style in the global economy “Messier”

(Bloomberg) – The world’s most aggressive and synchronized monetary policy tightening in 40 years is …