Shanghai extended restrictions in many parts of the city, which is home to China's financial hub and one of the world's busiest ports.
The closure of Shanghai has already increased congestion at other ports, further increasing transport costs. Transportation costs have multiplied.
Congestion in Shanghai is bad news for consumers and companies around the world.
"The citywide lockdown in Shanghai is a setback to global supply chains already stretched by geopolitical tensions," wrote Bansi Madhavani, senior economist for ANZ Research, in a report on Friday.
Global supply chains have been strained for months due to the Covid-19 pandemic.
Although the Shanghai port remains operational, activities such as warehousing and staffing will be affected, causing delays, he said, adding that cross-country transportationmay be hindered too.
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