Will a Logistics Crisis Arise from China’s COVID... Amazon Says "Will Reroute Cargo"

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[Asia Economy Reporter Kim Hyunjung] As China imposes city lockdowns due to an unprecedentedly rapid spread of COVID-19, causing disruptions in production and logistics for companies, Amazon has announced that it will ensure no issues in freight transportation by using alternative routes.

According to the South China Morning Post in Hong Kong on the 17th, Amazon stated that it will reroute shipments to warehouses in regions unaffected by COVID-19 controls to cope with the chaos caused by city lockdowns in China.

Maria Boschetti, an Amazon spokesperson, explained the day before, "There will be no significant disruption to our business," adding, "We can redirect available inventory to warehouses in neighboring areas to respond to the lockdowns."

The disruption occurred as Shenzhen City in Guangdong Province, known as "China's Silicon Valley," was locked down due to the spread of COVID-19. Taiwan's Foxconn, a supplier for Apple, announced on the 14th that it had suspended operations at its Shenzhen factory, and Japanese automaker Toyota also reportedly halted operations at its joint venture factory in Changchun, China.

Although Amazon has pledged to find countermeasures, the Shenzhen International E-commerce Association, which includes about 2,800 retailers using platforms like Amazon, reported that its members are experiencing supply disruptions. The association assessed that short-term impacts on global platforms like Amazon are inevitable as goods may not be delivered on time.

This content was produced with the assistance of AI translation services.