Shanghai is still grappling with its latest outbreak of COVID-19, however after 4 weeks of tight restrictions we may now be starting to see promising signs that the outbreak is contained. The daily case numbers in Shanghai have been steadily declining over the last 7 days, and authorities have begun a limited easing of the citywide lockdown in line with the below three-zone approach.

Closed: Areas that have reported a COVID-19 case in the previous seven days. Closed locations must continue lockdown measures for seven days. Residents cannot leave their homes; authorities will deliver food and essential groceries to the affected households. If officials do not find any cases, the area will transition to a control area, and the government will carry out nucleic acid testing on day 13. If no positive cases emerge during the last round of testing, the site will transition to a prevention area. If a case occurs during the 14-day period, authorities will lock down the resident’s building until reaching 14 days from the initial designation.

Control: Locations without any COVID-19 cases in the previous seven days. Control areas must carry out health monitoring for seven days. People in these locations may leave their homes at staggered hours and move around within their compound or community under strict precautionary measures. Individuals may also collect food deliveries. Gatherings remain prohibited. During the health monitoring period, authorities will close a control area that reports a COVID-19 case.

Prevention: Areas without any COVID-19 cases for two weeks. Residents in these areas must continue to reduce their movement but can travel within their sub-district, except for any control or closed locations. Travel between sub-districts is prohibited. Local authorities in some communities have issued temporary passes to each household allowing one person to leave at a time. Certain essential businesses may operate with capacity limits.

Our CFS in Shanghai is now operating and able to accept a limited amount of cargo, however due to ongoing lockdown requirements in residential areas with active cases our depot is operating with minimal personnel which will continue to prevent loading LCL cargo for the next few weeks. We are optimistic that the case numbers will continue to decline over the next few weeks, and we will look to reinitiate LCL cargo loading towards the end of May | early June. Alternatively we are still looking at the viability of loading LCL cargo from Ningbo where possible.

FCL cargo continues to move where factories are open and loading containers, albeit with added intervention at times and utilising options from nearby cities such as Wuxi, Suzhou and Nantong which fall outside of the areas still in lockdown.

Truck drivers remain in short supply and face additional costs with having to undergo frequent nucleic testing and produce negative antigen tests within 24 hours when completing deliveries. This will continue to add strain to container movements while the outbreak is still being actively managed.

Whilst the decline in daily case numbers is welcome, it may still be some weeks until the numbers are at a level which would facilitate a move to a broader lowering of restrictions across the city.

Oceania bound container ships are still calling Shanghai, although most services are facing delays due to port congestion through the rotation (notably New Zealand). We are still seeing vessel bunching cause irregular departure dates to what are forecasted fixed weekly services, and this continues through May and into June. The delay at Shanghai currently due to the restrictions however is minimal, with most vessels departing within 3-4 days of their original scheduled ETD. For all the above reasons the number of containers leaving Shanghai to Oceania is limited.

Beijing | Guangzhou Update

The new cases identified in Beijing and Guangzhou have climbed over the last few days, however both areas are still attempting to contain the outbreak using mass testing and imposing targeted lockdowns of buildings and neighbourhoods along with increased restriction of movement in Beijing to prevent another mass outbreak the same proportion as Shanghai which would require citywide lockdown.

Beijing officials have closed dine-in services at restaurants and reduced capacity at public parks and cultural and entertainment venues to 50% capacity. Residents must hold a negative nucleic acid test result taken within 48 hours to enter public places. From May 5th, the government will require a negative test result from a test taken in the previous seven days to use public transport or enter public places. Authorities previously suspended large gatherings like exhibitions, sports events and theatre productions and advised employers to permit workers to telecommute.

Officials will increase security and restrict transport to and from affected areas. Authorities typically maintain measures until two weeks after the latest date of newly confirmed community cases and conduct several rounds of COVID-19 testing before easing restrictions.

Please contact your Mondiale VGL representative if further information is required.


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