It is apparent that strict lockdowns are suppressing but not preventing spread of the Omicron variant of SARS-CoV-2 in China.  Of special importance to the U.S. is the emergence of the disease in major port-cities including Shanghai, Dalian and Tianjin.  While port facilities are still functional, efficiency has declined, and roadblocks are impeding transport resulting in accumulation of containers on docks. 

Attempts by the Government of China to confine COVID to affected regions in advance of the Winter Olympics and the Lunar New Year will have an adverse effect on port function. We can expect disruptions once again in supply chains.  As the 2020 restraints imposed by China are revisited, the ongoing period of inflation prevailing in the U.S. will be prolonged.