reports, China’s efforts to contain its latest COVID-19 outbreak in Shanghai is causing many factories to shut down—disrupting the global supply chain for consumer products like cars and electronics.

More supply chain issues on the horizon

SupplyChainDive

(SCD) reports, these current issues are just the tip of the iceberg. The supply chain issues experienced already throughout the COVID-19 pandemic are compounding, with much of the city essentially frozen in place to contain the Omicron variant.

This is resulting in rising costs, slowed trucking of supplies and production inputs that aren’t making it to factories.

It’s not just a matter of keeping employees isolated to maintain productivity; if material inputs aren’t making it to factories, employees camping out on factory floors won’t have anything to produce.

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Trucking snarled in Shanghai

As SCD reports, truck drivers entering Shanghai’s shipping port, airport and factories have to show negative COVID-19 test results from the last 24 hours. In a country where international shipping is so crucial to its economy, the logistical nightmare behind processing those millions of tests coming in at once have already damaged trucking efficiency.

Some companies have reported a 30% drop in efficiency based on lack of trucking in Shanghai alone, causing some to divert their cargo away from Shanghai to other ports.

A few manufacturers are dealing with the problem by keeping their employees within a “closed loop” system; earlier in April, GM implemented containment policies that would require its employees to remain in the plant. It was also able to secure passes for trucks to keep delivering supplies.

A logistical backlog

But that system will only last as long as supplies hold out; an Apple supplier recently announced it had paused production at its Shanghai and Kunshan plants due to COVID-19 restrictions.

COVID-19 lockdowns in Shanghai are creating a logistical backlog, SCD reports, that could take months to address. If lockdowns lift by late April, experts predict that backlog would take roughly three months to catch up on.

But if COVID-19 shutdowns persist past April, experts believe we’ll see higher commodity prices and suppliers not getting paid.

It’s not over yet unfortunately

Even when shutdowns lift and Shanghai is declared free of

COVID-19

, the subsequent rush for supplies by multiple companies simultaneously could cause new issues. As SCD reports, experts believe the ensuing supply chain issues could cause a 4%-5%

Automakers are going to be hit particularly hard by these complications; supply chain issues for computer chips and other automotive components could continue to cause availability issues on U.S. dealer lots.

It could also see another price increase for new vehicles as automakers attempt to make up for lost revenue in the wake of these supply chain issues. With new vehicles transactions averaging over $46,000 and used cars demanding record prices, the risk of price hikes gets more real as the supply chain crisis continues.

MORE: More New Yorkers Bought Cars During Pandemic to Avoid Public Transit

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