Is Thai supply chain anchored to China?

China’s Covid containment measures, especially in the world’s largest port city of Shanghai, have influenced Thailand’s supply chain security and could cast a shadow on local manufacturers’ decisions in the medium term.

How have China’s port lockdowns affected Thailand’s supply chain security?

Nomura Securities said 40 cities in China are under full or partial lockdowns, or have implemented district-based controls. This means restrictions on mobility for businesses as well as local residents.

Shanghai’s port is one of the busiest in the world, with S&P Global Market Intelligence reporting there has been an increase in wait times in recent months for bulk cargo ships at anchor waiting to enter Chinese ports. The number of ships waiting has increased to 600-700 from 500 in early March, or about 20% to 40% more than two months ago.

Mana Nimitvanich, first…