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COVID lockdowns in Shanghai interrupt the logistics and supply chains

COVID lockdowns in Shanghai interrupt the logistics and supply chains
COVID lockdowns in Shanghai choke lifeblood of economy.

The sudden increase in cases with the spread of the Omicron variant in Shanghai since mid-March has caused a dilemma for local authorities between controlling the epidemic and meeting the basic needs of the city with a population of more than 26 million.

The gradual closure announced on March 28 due to the cases triggered by the Omicron variant in the city was extended indefinitely in the whole city as the cases did not decrease.

The prolongation of the lockdown measures caused difficulties in the distribution of food, medicine and necessities and in the provision of care services.

Even the basic needs have become difficult for the residents of the city, where many foreigners live and China’s high-ranking people, mostly white-collar, live.

Shanghai residents, who cannot leave their homes, are turning to online shopping, while supplier businesses cannot meet the demands due to the lack of couriers and other logistics problems.

Although Chinese online shopping platforms such as Alibaba, JD.com and Meituan are trying to reinforce their warehouses in Shanghai and increase the number of staff and couriers, they cannot work at full capacity due to virus measures.

Closing an important trade, production and logistic center worldwide for weeks negatively affects the supply chains in many sectors at home and abroad.