Operational Impact

Shanghai Under Two Phase Covid-19 Closed Loop Management - Update: April 12, 2022

Written by Expeditors | Apr 12, 2022 7:15:56 PM

As the lockdown in Shanghai that began on March 28 is indefinitely extended, we’re seeing the trucking capacity getting more and more strained. According to Freightwaves, “more than 90% of trucks supporting import and export deliveries are out of action because of the restrictions”.

Consequently, and while the ports remain open and functional, getting the cargo to the port is still limited and depends on the truckers’ ability to obtain the required COVID reports. In addition to the trucker shortage, there is labor shortage for loading and unloading at manufacturers’ premises.

 

Feeders are a possible alternative to trucking: Taicang port and/or ports alongside the Yangtze river could be used as an alternative where the feeder service connects directly to mother vessels in Shanghai. Ocean carriers, while planning blank sailings, are trying their best to fill Shanghai’s allocation from other ports, primarily Ningbo in Central China, or via South Asian ports like Busan or Vietnam.  

Some factories in cities out of Shanghai are closing due to either sporadic COVID-19 cases or due to lockdowns that are starting to be implemented in their respective areas. LCL services in Shanghai remain suspended.

 

For airfreight, cancellations continue and approximately 95% of the SHA capacity has been removed. Road restrictions are still in place and there is no access to PVG airport. Surrounding airports are experiencing congestion and delays as they attempt to work through the influx of inbound cargo being diverted. Inbound shipments routed through alternative airports are being stuck in transit due to lack of trucking resources from carriers.

 

Contact your local Expeditors representative for more information and operational assistance.