Dear valued customers,
As the pandemic seems spreading across mid-China now, USPTI would like to give you some updates about the major Shanghai and Ningbo ports and we hope this could help you better arrange your cargoes to make sure your supply chain affected as less as possible.
Cargo backlog ripples beyond Shanghai as lockdown stops trucks
Rerouting freight to avoid the extended lockdown in Shanghai, where daily confirmed COVID cases topped a record 17,000 this week, is becoming more difficult and expensive as cargo facilities in other Chinese cities become overcrowded. The logistics challenges for ocean and airfreight in Shanghai are extreme.
More than 90% of truck capacity is out of service. Most warehouses in the city are closed. Limited truck access to Shanghai port terminals is causing shipping containers to pile up and slowing ship transfers. Drivers require a special pass and negative COVID test results.
Some shippers have cargo stuck on trucks, in warehouses and container freight stations in mid-China and no new containers are able to reach the port there.
Meanwhile, terminals at the Port of Ningbo are filling up and facing equipment shortages as more freight is diverted from Shanghai. Freight rates from Ningbo may be increased due to this cargo surge.
However, it’s also seen that an outbreak around Hangzhou is spreading, where the Ningbo port is located at. Ningbo, the key port city near Shanghai, said on Sunday it was closing all indoor dining at restaurants and hotels, and that people who had been in confined spaces would undergo testing daily for three days, without elaborating. Citizens in several cities expressed anxiety in social media groups that their cities might also go into lockdown.
The lockdown in Kunshan, an important electronics manufacturing hub next to Shanghai, is supposed to end by the end of the week. Truck movements in and out of the city are severely restricted, except for pandemic relief supplies approved by the local government. Trucks can only shuttle within the city between warehouses and factories with special approval. The restrictions are impacting the Wuxi Logistics Park and Seko clients with suppliers in the city.
According to the feedbacks from our local offices and our shippers, some of their shipments are delayed due to factory close or no trucking can be arranged, which makes them no choice but postpone the cargo. We would encourage you to closely contact your shippers/vendors about your cargo; USPTI China office teams will also keep in good touch with them to help arrange your shipment to be moved onto the next earlier voyage and we will keep doing our best to help streamline your logistics and make sure your supply chain smooth.
We are monitoring the situation and will keep you updated if there is any news. Should you have any questions, please don’t hesitate to contact our offices or your sales representatives.
All of us are happy to help. USPTI appreciate your support!