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China lockdowns and supply chain impact

On Sunday Shenzhen entered a seven day lockdown and earlier today authorities in Langfang, which borders Beijing and Dongguan in the southern province of Guangdong were locked down for a week, while the entire province of Jilin has been placed in lockdown, while Hong Kong restrictions are continuing.

China’s COVID cases doubled in the past 24 hours, with an announcement yesterday that Shanghai Pudong (PVG) Airport will close to inbound passenger flights for six weeks, in a bid to stop the spread of COVID cases.

Shenzhen’s new COVID restrictions were announced on Sunday, with a lockdown for seven days and non-essential workers staying at home. Adults must undergo three PCR tests in the coming days, and buses and subway trains are being halted.

Shenzhen customs and trucking services are operating normally (though with some restrictions) and while we have not yet been advised of any official limitations to Yantian port, the offices of carriers are closed and low operating efficiency is expected.

Some areas including Hangzhou, Wenzhou, Jiaxing have local measures in place, with factories and community closures based on local conditions.

Yantai, Weihai and Zibo have been locked down, which means trucking services cannot be provided to these cities and also means some drivers may not be happy to go to Qingdao.

Until now, shipping lines in Hong Kong have largely been operating as usual, but the suspension of flights from Australia, Canada, France, India, Pakistan, the Philippines, Nepal, the USA and UK will be extended until the 20th April.

Hong Kong Air Cargo Terminal is operating under increased pressure, due to a reduced workforce of about 30%, while trucking services to Hong Kong via the Shenzhen border have been suspended and the alternative of using feeder vessels to Hong Kong incurring cost and transit time.

China regional round-up

Guangdong – There are some backlogs and delays at the airport.

Nanjing – Nucleic acid test are required to enter. Otherwise situation is largely normal.

Ningbo – Normal operations for transport, offices and factories.

Qingdao – Air and ocean are operating as normal, but there is limited capacity at the port terminal, due to restricted worker numbers.

Shanghai – High-risk areas are in lockdown. Air cargo and charter flights are operating, but the decision to divert inbound passenger flights will reduce capacity and put pressure on rates. Trucking services and ocean are operating.

Xiamen – Normal operations for transport, offices and factories

Despite the challenging situation in many regions across China, we work closely with our network partners, to find solutions for our customers, including time-sensitive shipments.