Chinese port closure raises fears of supply chain disruptions

China has partially closed the world’s third-busiest port after a worker contracted COVID-19, fueling fears of more supply-chain snarls as the delta variant spreads across the globe.

This week the Chinese government halted all inbound and outbound operations at a crucial terminal of its Ningbo-Zhoushan port. The Meishan terminal, which services shipments to the United States and Europe, was suspended until further notice after a worker there contracted the virus.

The sudden closure raises the specter of more supply chain issues, given that new infections of COVID-19 are increasing. China has a strict approach to COVID-19 outbreaks and has a stance of prioritizing containment of infections above all else. Recent outbreaks in more than a dozen provinces have prompted lockdowns and canceled events.

The fear is that the port being partially shut down is just the beginning, and more shipping terminals and places of economic importance across the country…