The Kiel Institute for the World Economy (IfW) predicts a massive obstruction of the global flow of goods. It blames a “traffic jam” of container ship traffic in southern China as the culprit.” The number of waiting container ships in China’s Pearl River Delta is unusually high. Individual ports such as Yantian have shipped less than half their usual container volume,” as the Kiel Institute for the World Economy reported on Monday. “Currently, almost five percent of all container ship capacity is already stuck at Chinese ports. This is more than in the first Covid wave.” The congestion has also led to “currently ten percent fewer container ship traffic than expected” in the Red Sea between North Africa and the Arabian Peninsula, according to the IfW.
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