BANGKOK/SINGAPORE -- Freight rates will remain elevated as China's dogged pursuit of a zero-COVID strategy continues to hold up international trade, the chiefs of two global logistics companies said. One warned that the situation could pose an existential threat to manufacturers that produce goods with little room in the pricing to absorb higher transportation costs.
The Chinese strategy has caused a shortage of labor at ports, preventing ships from quickly offloading cargo and sailing elsewhere. Labor issues have also clogged U.S. ports, where maritime companies and longshore unions are negotiating employment terms.
