Prime Freight’s summary of an August 2022 report by South China Morning Post. Read the original for the full story.
In August 2022 a Covid lockdown in Yiwu, the eastern Chinese city that hosts the world’s largest small-commodities market, put the country’s peak Christmas export season in doubt.
The South China Morning Post reported that the city entered a three-day lockdown on 11 August. Factories had to stop unless they made medical products or daily necessities or were on a government white list, the wholesale market and restaurants closed, and most vehicles were barred from entering or leaving.
Yiwu is estimated to make about two-thirds of the world’s Christmas products. Local manufacturers said around 70% of the season’s orders were already finished, but some deliveries could slip, accessories from other locked-down areas were not arriving, and orders from Russia and Ukraine had collapsed. The outbreak came just as officials had started bringing overseas buyers back on charter flights. The report also noted that China’s exports grew 18% year on year in July, while container spot rates from Asia were falling sharply.
What it meant for shippers
Seasonal goods have little tolerance for delay: decorations that miss their sailing can miss the selling season entirely. Lockdown risk at origin was one reason many retailers placed holiday orders earlier in 2022.
What happened next
The restrictions were lifted on 21 August, about ten days after they began (SCMP).