COVID-19 Situation in China

Attention: Shipping Manager 

• Shenzhen lockdown due to COVID-19

We have been advised that the city of Shenzhen, China has been placed under a week-long lockdown over the weekend due to increasing COVID-19 positive cases.

The port of Shenzhen will remain open during the lockdown, but it will be closed for cargo operations. The impact of this lockdown to the global supply chain is expected to be greater and potentially last longer than the shutdown of Yantian port.  For this reason, major disruptions are anticipated. The lockdown is affecting production as companies are forced to suspend operations – many truck drivers have already stopped working due to strict COVID-19 testing requirements and measures imposed by the Chinese authorities.

 

• Shanghai – COVID-19 restrictions

Due to rising COVID-19 cases, factory areas in Shanghai have been closed, trucks and cars cannot go in or out of these areas.

Furthermore, Shanghai Pudong Airport (PVG) has been closed for all inbound passenger flights. All inbound international passenger flights will be diverted to 13 other cities for 6 weeks to stop the spread of new COVID cases. Although freighter flights are thought not to be affected, this will affect cargo shipping as it will further reduce capacity for flights to/from this region. As a result, air freight rates for imports and exports at PVG will surge.

The situation is similar in other major cities like Lianyungang, Qingdao and Tianjin. Delays and disruptions to export cargo out of China are expected during the upcoming weeks due to these recent closures and restrictions.

If you have any concerns regarding the above, please do not hesitate to contact your customer service representative.

We will be closely following the situation and will keep you updated with further information.