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Port delays are getting worse in Shanghai. That’s very bad news for global supply chains

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Port delays are getting worse in Shanghai. That’s very bad news for global supply chains

On Friday, Shanghai prolonged restrictions in lots of components of town, which is residence to China’s monetary hub and one of many world’s busiest ports. The Port of Shanghai had already been affected by main holdups, and the extension might worsen congestion and enhance transportation prices additional, specialists mentioned.

The coastal metropolis imposed a two-phase lockdown on its 25 million residents earlier this week. Authorities positioned the western a part of town below lockdown on Friday, and prolonged an current lockdown in jap neighborhoods with optimistic circumstances by up to 9 days.

These restrictions have prompted main delays at Shanghai port, which is within the jap a part of town and was already congested. It’s the world’s busiest container port, dealing with greater than 4 occasions the amount seen on the Port of Los Angeles in 2021, in line with knowledge from each cities’ port authorities.

VesselsValue, a worldwide delivery knowledge supplier, mentioned the variety of ships ready to load or discharge at Shanghai’s port had skyrocketed to greater than 300 this week, a close to 5 fold enhance previously two and half weeks.

“Congestion at Shanghai normally worsens presently of yr. Nonetheless, the latest enhance is way larger than each final yr and regular seasonal ranges,” the agency mentioned in an announcement on Tuesday.

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It stays unclear what impression the lockdown can have on the port’s vessel backlog, the agency mentioned. Nevertheless it advised that offer chain managers and analysts around the globe “begin planning for knock on results.”

Maersk, one of many world’s largest container delivery firms, additionally mentioned the Shanghai lockdown could cause transportation delays and better prices.

“Trucking service out and in [of] Shanghai can be severely impacted by 30% attributable to a full lockdown on Shanghai’s Pudong and Puxi areas,” Maersk mentioned in an advisory to purchasers on Monday. Shanghai is separated into two components, Pudong and Puxi, by the Huangpu River.

“Consequently, there can be longer supply time and a attainable rise in transport prices,” it added.

Town’s authorities, in the meantime, has mentioned that freight operations will stay regular below the lockdown.

Shanghai Worldwide Port Group, which runs the port, mentioned final month that it could implement a “closed-loop system” that requires staff to remain in particular areas and cling to sure protocols to stop the unfold of coronavirus.

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Nonetheless, as a result of journey restrictions, prolonged waits at checkpoints, coronavirus check necessities, and potential quarantine upon return, many truck drivers are struggling to get the cargo containers delivered out and in of the port on time, in line with state-controlled media outlet The Paper.

A world concern

Congestion in Shanghai is unhealthy information for shoppers and firms around the globe.

“The citywide lockdown in Shanghai is a setback to international provide chains already stretched by geopolitical tensions,” wrote Bansi Madhavani, senior economist for ANZ Analysis, in a report on Friday.

World provide chains have been strained for months as a result of Covid-19 pandemic and Russia’s invasion of Ukraine.

Though the Shanghai port stays operational, actions similar to warehousing and staffing can be affected, inflicting delays, he mentioned, including that cross-country transportationmay be hindered too.

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“These restrictions may … ship freight charges hovering,” Madhavani mentioned.

Nomura analysts additionally count on “extra delivery delays, port -congestions and logistics undercapacity” as Shanghai stays in lockdown.

“Markets to date have underestimated the severity of the scenario in China,” Nomura analysts mentioned Thursday in a analysis observe. “Within the subsequent couple of months, we count on international traders to higher replicate these shocks of their valuations of assorted asset courses.”

— CNN’s Beijing Bureau contributed to this report.

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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US President Joe Biden has warned that an “oligarchy is taking shape in America” that risks damaging democracy, as he blasted an emerging “tech industrial complex” for delivering a dangerous concentration of wealth and power in the country.

Biden’s comments during a farewell address to Americans from the Oval Office on Wednesday night amount to a veiled attack on Donald Trump’s closest allies in corporate America, including tech billionaire Elon Musk, just five days before he transfers power to the Republican.

Biden said he wanted to warn the country of the “dangerous concentration of power in the hands of a very few ultra-wealthy people” and the danger that their “abuse of power is left unchecked”.

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He cited late president Dwight Eisenhower’s warning in his 1961 farewell address of a military-industrial complex and said the interaction between government and technology risked being similarly pernicious.

“I’m equally concerned about the potential rise of a tech-industrial complex that could pose real dangers for our country as well. Americans are being buried under an avalanche of misinformation and disinformation, enabling the abuse of power. The free press is crumbling. Editors are disappearing. Social media is giving up on fact checking,” Biden said.

Biden’s words were a reference to the world’s richest man, Musk, the owner of social media platform X and the founder of electric-vehicle maker Tesla, who gave massive financial backing to Trump’s campaign and has become one of his closest allies during the transition to Trump’s new administration.

Some of Silicon Valley’s top executives, from Jeff Bezos of Amazon to Mark Zuckerberg of Meta, have also embraced Trump since his electoral victory and are expected to have prime spots at the inauguration ceremony in Washington on Monday.

Biden also used his remarks to cast a positive light on his one-term presidency, which ended with the big political failure of him dropping his re-election bid belatedly in late July, passing the torch of the campaign against Trump to vice-president Kamala Harris — an effort that ended in a bitter defeat.

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Biden’s approval ratings have hit new lows as he bows out from the presidency and a political career in Washington that has spanned more than five decades. Just 36.7 per cent of Americans approve of his performance on the job, and 55.8 per cent disapprove, according to the FiveThirtyEight polling average.

Biden said he hoped his accomplishments would be judged more favourably in the future.

“It will take time to feel the full impact of all we’ve done together, but the seeds are planted, and they’ll grow and they’ll bloom for decades to come,” he said.

Biden has not only faced seething criticism from Republicans, but also rebukes from Democrats who blame him for seeking re-election despite his advanced age. He is now 82.

Biden’s presidency was defined by a record-breaking jobs market and a robust recovery from the Covid-19 pandemic, as well as a series of legislative accomplishments on the economy. But the pain of high inflation became a massive political vulnerability for him.

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In foreign affairs, he took credit for western support for Ukraine after Russia’s full-scale invasion of the country in 2022, but his response to conflict in the Middle East, including staunch support for Israel’s war in Gaza, drew a strong backlash from progressive Democrats, undermining the unity of his political coalition.

It was not until Wednesday, with five days to go before he left office, that Biden — with help from Trump aides — was able to broker a ceasefire deal to free hostages held by Hamas. 

“This plan was developed and negotiated by my team and will be largely implemented by the incoming administration. That’s why I told my team to keep the incoming administration fully informed, because that’s how it should be, working together as Americans,” he said at the start of his address.

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Biden touts major wins in farewell address

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Biden touts major wins in farewell address
Biden touts major wins in farewell address – CBS Texas

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In his farewell address, President Biden warned an “oligarch” of “ultrarich” threatens America’s future.

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Takeaways From Marco Rubio’s Senate Hearing

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Takeaways From Marco Rubio’s Senate Hearing

Marco Rubio, the Republican senator from Florida named by Donald J. Trump to be the next secretary of state, was warmly welcomed by senators from both parties at his confirmation hearing on Wednesday. He has served for years on the Foreign Relations and Intelligence Committees in the Senate, and is known as a lawmaker devoted to the details of foreign policy.

“I believe you have the skills and are well qualified to serve as secretary of state,” Senator Jeanne Shaheen, Democrat of Hampshire, said in her opening remarks.

The notable lack of tension at the hearing indicated that Mr. Rubio would almost certainly be confirmed quickly.

From the lines of questioning, it was clear what senators want Mr. Rubio and the Trump administration to focus on: China, Russia, North Korea and Iran. Mr. Rubio himself pointed to those four powers — what some call an “axis” — in his opening remarks.

They “sow chaos and instability and align with and fund radical terror groups, then hide behind their veto power at the United Nations and the threat of nuclear war,” he said. As permanent members of the U.N. Security Council, China and Russia have veto power over U.N. resolutions.

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Mr. Rubio repeatedly singled out the Chinese Communist Party for criticism, and, unlike Mr. Trump, he had no praise for any of the autocrats running those nations.

He did say the administration’s official policy on Ukraine would be to try to end the war that President Vladimir V. Putin of Russia started, and that leaders in both Kyiv and Moscow would need to make concessions. U.S. officials say Russia has drawn its allies and partners into the war, relying on North Korea for troops and arms, Iran for weapons and training, and China for a rebuilding of the Russian defense industrial base.

Mr. Rubio defended Israel’s conduct in the war in Gaza, blaming Hamas for using civilians as human shields and calling the deaths of tens of thousands of Palestinians in Gaza, most of them non-combatants, “one of the terrible things about war.”

He expressed concern about threats to Israel’s security. “You cannot coexist with armed elements at your border who seek your destruction and evisceration, as a state. You just can’t,” he said.

When asked whether he believed Israel’s annexing Palestinian territory would be contrary to peace and security in the Middle East, Mr. Rubio did not give a direct answer, calling it “a very complex issue.”

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Mr. Rubio’s hearing was about two hours in when the committee’s chairman announced that Israel and Hamas had sealed an agreement to begin a temporary cease-fire and partial hostage release in Gaza. An initial hostage and cease-fire agreement, reached in November 2023, fell apart after a week.

Mr. Rubio called the North Atlantic Treaty Organization, which Mr. Trump has repeatedly criticized, “a very important alliance” and insisted that Mr. Trump was a NATO supporter. But he also backed Mr. Trump’s argument that a strong NATO requires Europe to spend more money on its collective defense.

The United States, he said, must choose whether it will serve “a primary defense role or a backstop” to a self-reliant Europe.

Some prominent Trump supporters remain distrustful of Mr. Rubio. They recall his vote to certify the 2020 election results despite Mr. Trump’s false claims of election fraud. And they consider Mr. Rubio’s foreign policy record dangerously interventionist.

Mr. Rubio has long been a hawkish voice on national security issues, often in ways that clash with Mr. Trump’s views, even if the ideas are conventional ones among centrist Republican and Democratic politicians.

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In the past, Senator Rand Paul, Republican of Kentucky, has criticized Mr. Rubio for advocating aggressive American intervention overseas. Mr. Paul has been outspoken in pushing for less use of U.S. troops abroad and is skeptical about whether economic sanctions can lead to positive outcomes.

On Wednesday, Mr. Paul pointedly asked Mr. Rubio whether he saw any way to work with China rather then persisting in attacks on Beijing, and he also questioned the wisdom of many American and European policymakers who insisted that Ukraine must be admitted to NATO.

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