
China COVID restrictions finally loosen
Following widespread protests the Chinese government finally appear to be relaxing their zero-COVID strategy, which will give residents more freedom and finally loosen supply chain constraints.
Regions and cities are adjusting and starting to lift regulations that have been in place for lockdowns and PCR testing and the easing of these restrictions will improve the efficiency of supply chains across the country.
Next month’s Chinese New Year (CNY) holiday begins early – on the 22nbd January 2023 – and may cause more delays than usual, if workers travel between cities and provinces is subject to delays, despite the relaxations, which means factory closures may be extended and/or start early.
We have seen an increase in bookings, as shippers move ahead of the Christmas and new year holidays, as well as advancing cargo before CNY. This increase has slowed the rate of demand decline, but has not triggered any rate increase, indeed there are fewer blanked sailings in January, than December, though this might be reversed by CNY developments.
City round-up
SHANGHAI
- Factories have increased orders from prior month, but less than last year.
- Ocean terminals and airports operate as usual.
- Transport to and from the airport and container port operates as normal.
- Shipping space and equipment are open with no shortage.
- Factory operations are normal, no reported lockdowns, if any covid cases factories back operating quickly.
SHENZHEN | GUANGZHOU
- Factories have increased orders from prior month, but less than last year.
- Ocean terminals and airports operate as usual.
- Transport to and from the airport and container port operates as normal.
- Shipping space and equipment are open with no shortage.
- Factory operations are normal, no reported lockdowns, if any covid cases factories back operating quickly.
- Air rates still on some higher levels.
XIAMEN | NINGBO | QINGDAO
- Factories have increased orders from prior month, but less than last year.
- Ocean terminals and airports operate as usual.
- Transport to and from the airport and container port operates as normal.
- Shipping space and equipment are open with no shortage.
- Factory operations are mainly normal, no reported lockdowns, if any covid cases factories back operating quickly.
We will continue to closely monitor the evolving situation and will update you further, as we see more evidence of lockdowns lifting and supply chains flowing freely again.
Our team simplify the most demanding global trading, by managing your transport needs and dealing with every participant, to give you confidence in your supply chain and control of every shipment.
To discuss how PSP Worldwide Logistics could support your supply chain, please EMAIL our managing director, Colin Redman.