China relaxes covid restrictions, good news for the shipping industry

The protests that were witnessed in Beijing against the zero covid policy are easing as the authorities are looking for a new move from the pandemic way of life with the reopening of the Chinese economy. The lockdown restrictions in the major cities including Chongqing and Guangzhou have been removed ensuring a positive impact on the shipping industry, leading to increased commodity demand with increased imports into the country.

The head of research at Freightos, Judah Levine said that the easing in the covid restrictions might result in more lockdowns and can affect manufacturing and port operations, but as the capacity of vessels is increasing due to demand and ease of covid restrictions, the disruption would not have the same impact on logistics as it did during the pandemic when the demand was increasing but the capacity was limited.