Industry President Siegfried Russwurm told the German Press Agency in Berlin: "German industry fears that production processes will be disrupted in the coming weeks. Sectors that rely on deliveries of raw materials or components and the shipment of their finished products by sea will be particularly affected."

The impending shutdown of the world's largest container port will completely disrupt global container shipping and international supply chains, according to Russwurm. "Companies and their customers are already feeling the effects of the international logistics turbulence. Transport prices have more than doubled in recent months due to the war in Ukraine and the consequences of coronavirus. The branches of German companies in China are already working in crisis mode."

The "MarineTraffic" app can be seen on a smartphone monitor, showing the positions of cargo ships (green) off the port of Shanghai. IfW evaluations of ship movements at Chinese ports have shown that exports from the port of Shanghai have collapsed in recent days and are around 30% below the development of other ports in China. Due to new coronavirus infections, Shanghai has been largely in lockdown since the end of March.

© MarineTraffic/dpa

Many companies have been unable to get their goods out of the country for more than three weeks in some cases, said Maximilian Butek, the delegate of German industry in Shanghai. Even alternative delivery routes via other ports were not enough to cushion the shortfall. "The shortage of supplies from China will have a further negative impact on the already high inflation in Germany," said the delegate.

Shanghai in corona lockdown - effects feared to last for months

Due to an ongoing coronavirus lockdown in Shanghai, there is a traffic jam of cargo ships in the port. According to estimates, the export volume of the world's largest port has already fallen by around 40%.

"The shockwaves caused by the lockdown here in China cannot yet be fully grasped," said the delegate. It is likely to take months to rectify the disruptions in the supply chains. The port itself is not the biggest problem. Rather, the difficulty lies in the transportation of goods by truck to and from the port due to the strict coronavirus measures.

"In principle, this affects all product groups. But there is particular concern about electronic goods and raw materials or preliminary products," said the delegate. The lockdown is now affecting all companies - regardless of industry or size. There have been massive disruptions to supply chains, transport and logistics options or to personnel and production.

The port city, which has a population of 26 million, has been affected by extensive curfews for a month. The metropolis is at the center of the biggest coronavirus wave in China since the pandemic began more than two years ago. With curfews, mass testing and quarantine, the Chinese leadership is pursuing a strict zero Covid strategy, which is being put to the test by the arrival of the Omikron BA.2 variant.

Russwurm said: "The longer the lockdown in China lasts, the more severe the economic consequences will be - for the global economy and for the German export industry. There is no sign of the maritime supply chains easing in the short term."

Growth expectations for the German economy are already subdued due to the consequences of the war in Ukraine and higher energy prices. It is expected that, according to institutes, the Federal Minister for Economic Affairs, Robert Habeck (Greens), will also significantly downgrade the German government's forecast for the current year when he presents the spring projection next Wednesday.