As China’s latest COVID peak continues to impact supply chains and transportation infrastructure, Hong Kong will lift flight suspensions on nine countries from the 1st April and Shenzen has ended its seven day lockdown, but a nine-day lockdown has been imposed in Shanghai and people told to work from home, because of a massive surge in new infections.

The following updates are a summary of reports sent directly from each region, by our local offices.

Shenzhen and other areas have returned to ‘normal’ operations again and while ocean ports continued to operate during the closure, vessel queues have grown at many major China ports, while volumes through Yantian have fallen by 43% since the beginning of March.

Reduced land-side trucking capacity is expected to continue at all main ports, due to the current pandemic-safe operating regime, which can reduce cargo volumes at present.

Following lower demand for sea freight, after the long CNY holiday and reduced output from factories, several carriers have announced blank sailings, in an attempt to bolster rates.

For the Asia-Europe trade, 2M carriers have recently announced three further blanked sailings, while on Asia-USA trade demand remains strong.

It is still too early to predict the longer-term impact of the present situation, but we can expect bunker adjustments, in face of increasing fuel costs, on ocean services and overland haulage.

Air cargo rates from Asia have soared since the start of the war in Ukraine, as a result of lost capacity and alternative routes – avoiding Russian airspace – are extending flight times and costs.

COVID measures in China are limiting the capacity for local transport and terminal handling to handle air cargo to and from the airports and is expected to impact as long as COVID and the Ukraine conflict continues.

RAIL
We are offering a rail freight service from Asia to Europe, that does no transit through Russia or Belarus and our rail team is available to discuss bookings on this Southern Corridor service.

The Southern rail route departs from Xian and transits through Aktau – Baku – Istanbul to Germany and Scandinavia; Denmark & Sweden

HONG KONG
Cross-border trucks between China and Hong Kong are still having capacity limitations due to COVID measures, with long waiting times for control and restrictions for travel determining the capacity.

Many cross-border consignments are being transported by ocean feeder, due to the limited truck capacity.

Warehouses in the city have reduced capacity for cargo handling causing delays for handling and loadings with staff restrictions.

SHENZHEN
Shenzhen region warehouses have resumed work and are receiving goods again after last week’s lockdown.

Most factories and transport companies will start operating from today or tomorrow, depending on the factory’s location.

All truck drivers require cleared 24hours PCR test report

Air: Airlines are operating, but there is limited capacity following flight cancellations and ground handling and cargo operations are still affected by capacity limitations.

Ocean: Ports in Shenzhen are operating, but trucking and warehouse limitations are likely to reduce port capability temporarily.

XIAMEN
Most companies and the local NGL team work remotely at present to serve clients and partners.

Local trucking, ocean shipping and terminals in Xiamen are operating, but the remote working of most companies will impact capacity, effectiveness and the speed of communication with shippers and vendors, which means factories may reduce output and might not meet planned delivery schedules. We recommend checking with your vendors, to clarify their status.

Quanzhou area has difficulty arranging delivery to Xiamen port, which means disruption and delays.

NINGBO
Ningbo city has normal operations for transportation and warehouse activities and the NGL team continue to operate on-site.

Some nearby areas such as Hangzhou, Wenzhou, Jiaxing have local measures with factory and community closures based on the local conditions.

SHANGHAI (28th March: Lockdown initiated – SEE REPORT)
Normal operations for ports.

Warehouses and terminals operate as normal, but require the driver to be tested within 48 hours before delivery which is limiting trucking capacity.

Many offices work remotely or with limited staff, following local COVID measures and government recommendations. The remote working of most companies will impact capacity, effectiveness and the speed of communication with shippers and vendors, which means factories may reduce output and might not meet planned delivery schedules. We recommend checking with your vendors, to clarify their status.

Local regulations for residential areas impact the ability of staff to travel to work depending on their locations. The NGL team are operating partly remote to service clients and partners.

QINGDAO
Qingdao city has normal operations for transportation and warehouse activities.

Trucking across the Shandong province is a bit difficult. Weihai, Rushan and Weifang have measures restricting operations.

Qingdao port and airport operating, but efficiency is low due to COVID-19 safe-working measures.

Warehouse operations are open, but limited capacity due to lack of workers in the Qingdao port warehouse.

Local regulations for residential areas impact the ability of staff to travel to work depending on their locations. The NGL team are operating partly remote to service clients and partners.

VIETNAM
Normal operations for transportation and warehouse activities.
The NGL team operates on-site.

THAILAND
Normal operations for transportation and warehouse activities.
The NGL team operates on-site.

The supply chain impact of Omicron continues to be felt across China. Our local teams are monitoring the evolving situation closely and we will share important news and developments, so that you can make informed decisions and protect your supply chain.