SHANGHAI COVID-19 LOCKDOWN

China has been fighting it's largest outbreak of Covid-19 since mid-March. The infections caused by the Omicron variant are widespread in more than 20 provinces of China. 

Many cities in Guangdong province (such as Shenzhen, Guangzhou, Dongguan etc), Dalian, Xingang, Qingdao and Ningbo have reported higher case numbers. 

Last month the Chinese Government ordered the confinement of Shenzhen, the technological capital of China which has 17 million inhabitants, with all residents required to pass three rounds of PCR testing. 

During the past week or so, lock-downs and restrictions in the area have eased and while congestion is still affecting logistics, the ports are starting to resume normal operations. 

Beginning late last month, Shanghai entered the first of a two stage lock-down with the eastern side of the city to be locked-down from the 28th March to 1st April, and the western side following suit from the 1st April - 5th April however, the lock-downs and restrictions are still ongoing until further notice.

The lock-downs have led to factories and businesses being forced to close down, public transport being halted and office staff being required to work from home. 

Even though the ports and airports remain open, strict rules for trucking have already had an impact on LCL, FCL and Airfreight movements, it is possible that delays will be incurred to and from the regions for at least the next two weeks. 

As many carriers are unable to leave or enter Shanghai, many customers are looking to alternative ports/airports to ship cargo in the hopes of keeping their supply chain moving during the closure in Shanghai. 

This will also undoubtedly lead to an increase in congestion in the surrounding alternative ports. 

We will continue to keep you update on the situation as more information becomes available.