Covid drives Shanghai shutdown: forwarders suggest alternative ports

31.03.2022

Manufacturing and cargo transport in Shanghai is expected to grind to a halt this week, as China doubles-down on its zero-Covid policy and plunges the city into lockdown.

Local authorities announced yesterday it would happen in two stages over the next nine days, starting with the eastern side of the city from 5am today.

This includes Pudong, and forwarders said they expected factories to suspend manufacturing, while transport to-and-from the airport and container terminals would be severely limited.

Thomas Gronen, head of Greater China at Fibs Logistics, said it would be «nearly impossible» to access Shanghai Pudong Airport (PVG), Yangshan and Waigaoqiao container ports and any surrounding warehouses.

«We are seeing major trucking bottlenecks and restrictions not only in Shanghai, but in other cities too,» he told The Loadstar.

«For ocean freight shipments over the next nine days, we are recommending clients use Ningbo port, especially for LCL shipments that need to go through a CFS.

«PVG airport is still operating as normal — PVG and most co-loaders recalled part of their staff to stay at the airport. However, magnetic inspection service will be stopped until 1 April.»

Furthermore, Mr Gronen warned, the lockdown may well be extended beyond 5 April if more Covid cases are uncovered. The current spike is apparently the highest since the virus emerged in Wuhan two years ago, leaving question marks over the long-term viability of Beijing’s strict virus control policies.

Vespucci Maritime’s Lars Jensen pointed out that the disruption comes on top of the Shenzhen fallout from the last few weeks. The South China city is still facing issues, including limitations for cross-border trucking with Hong Kong.

Mr Gronen said other parts of China were also suffering cargo disruption due to Covid restrictions. In Beijing, for example, the time limit for trucks from other regions to enter the capital has been extended.

«Due to the reduction of market demand, some airlines have reduced their flight capacity, and we expect the air rates ex-Beijing to rise this week,» he added.

Analytics on topic
Report
01.09.2021
Report
01.09.2021
Lloyd’s List Half-Year Outlook

The half-year health check on the state of the maritime markets finds shipowners in a better place than they anticipated 12 months ago. While tankers will have to wait for a meaningful vaccine-led recovery, box and bulk are booming.

Source: Lloyd's Loading List
Report
30.07.2024
Report
30.07.2024
Digital payment and settlement infrastructure for rail transit traffic

Far from a one-off undertaking, the digital transformation is a continuous effort to adapt the transport infrastructure to the evolving technological capabilities and requirements.