The current outbreak in China unfortunately continues to grow, with some 23 cities now facing either a partial or total lockdown, affecting a reported 193 million people in areas accounting for 22% of GDP.
A brief summary of how these restrictions are affecting our major trading ports is detailed below.
• All residents in Shanghai have undergone nucleic testing Monday 4th April, and must complete another test Wednesday 6th April. The government will confirm the new policy | strategy after receiving the reports.
• Despite initial reports that eastern Shanghai was expected to reopen 1st April, the area remains under continued lockdown along with western Shanghai – a total of 26 million people are currently in lockdown.
• From 28th March Pudong has been under lockdown, with CFS depot’s unable to receive cargo. These restrictions are still currently in place. For any LCL shipments we will assess the viability of moving to Ningbo to expedite departure.
• The border between Shanghai and other cities remains closed.
• Truck drivers who attempt to enter Shanghai must apply for a special permit which is difficult to attain, so many factories have requested to move cargo to Ningbo | Nantong or Zhangjiagang to avoid further delay.
• At this stage we are expecting restrictions to remain until at least 15th April.
• At this stage only Xiangshan is under lockdown, with all other areas operating normally.
• There are no significant restrictions with trucking, however we are seeing deviations from the standard operating timeframes which does require added patience.
• Feedback from most factories is that they are operating normally with minimal delay (if any).
• We are seeing a surge in volume moving from Ningbo Port, which is the result of factories in Shanghai moving their cargo to Ningbo given movements from Shanghai are not viable while still the area remains in lockdown. This greater number of liftings from Ningbo may cause a shortage of equipment with some carriers. Typically the shortfall is with 40GP and 40HC equipment, with 20GP and NOR equipment more accessible.
Shenzhen & Guangdong
• All terminals | warehouses | trucking companies have resumed normal operation.
• Drivers who are entering Shenzhen are required to have a negative nucleic test result within the previous 72 hours.
• From all of the Guangdong provinces, only a few communities of Dongguan City | Zhaoqin City | Maoming City are still under lockdown, however this does not appear to be causing significant delay.
• According to Government Epidemic Prevention Provisions, any location where a positive case is found will be put into isolation for 14 days, until no positive cases are detected.
Xiamen / Fuzhou
• Affected districts and buildings are placed into higher restrictions when positive cases are detected, but at this stage there are no widespread restrictions.
• Quanzhou which hosts more then 50% of factories for Xiamen port has been under restrictions for the last 2 weeks, expected to return to a more relaxed setting in the next week.
• The lifting of restrictions in Quanzhou is expected to cause a surge in demand for containers and trucking, which may cause further delay.
• Xiamen and Fuzhou remain significantly affected by lack of capacity on feeder vessels to Hong Kong or Southeast Asia, causing ongoing delays with booking acceptance and equipment release.
• Restrictions are in place for any district with Covid positive cases, with lockdown remaining until favourable nucleic testing numbers are reported. Lockdowns are typically in place for 14 days .
• These restrictions are causing issues with cargo movements (trucking appointments need to be made in advance), with reported delays and additional costs.
• Hebei Province is currently facing difficulties | not able to complete export arrangements from Xingang, which is causing significant congestion and ongoing cargo delays.
• These delays when coupled with vessel instability from the Northern China region which cause capacity restraints will cause a backlog which could take some time to recover for some services.
Nansha & Pearl River Delta:
• No current restrictions in place.
• Most factories request negative Covid test results for any driver who has travelled between Shenzhen or Dongguan within the last 14 days.
• No significant delays to production reported from factories.
Please contact your Mondiale VGL representative if further information is required.