Shanghai city blockade indefinitely, people struggle when goods are stagnant
The city of Shanghai (China) decided to extend the blockade indefinitely due to the complicated epidemic situation, a move that has caused instability to the Chinese supply chain when new data was released for… found that the volume of goods transported by sea in this country was significantly affected.
Although restrictions in the east of the city, including Pudong district, were lifted on Friday (April 1), most areas are still under lockdown. Meanwhile, the local government did not make any specific announcement about the end of the lockdown except stating that the blockade order will be implemented in “phases”.
In an interview with The Loadstar site, a delivery worker here said: “Shanghai has begun a large-scale Covid-19 test for all 25 million people in the city. The authorities have promised that anyone who tests negative will be free to operate and positive cases will be transferred to centralized isolation centers as before.“.
Currently, almost the entire city of Shanghai has been locked down and most people are not allowed to leave their homes for any purpose, even to buy food. However, some businesses are still allowed to operate in closed conditions, most of which are shipping ports.
The city of Shanghai has completely locked down to fight the Covid-19 pandemic.
Restricted road transport, in addition to the mass closures of factories or warehouses, has forced sea freight to be diverted – instead of Shanghai, the cities of Ningbo, Qingdao and Tianjin are currently at the top of the list of potential ports.
Crane Worldwide Logistics shared about the problem they encountered: “Managing and transporting containers becomes a big challenge. Other cities are afraid to let container trucks from Shanghai circulate in the city“.
According to Fibs Logistics, most of the container shipments in Shanghai are delayed and the travel schedule is “not stable”. Ligentia, a major freight forwarding service in Hong Kong, China has informed its customers that its warehouses in Pudong, Shanghai have been closed due to the blockade order.
Crane Worldwide Logistics announced that its cargo at Pudong Airport is currently in custody due to mass flight cancellations. Transporters recommend using Zhengzhou airport as an alternative gateway to the air transport industry.
Fibs Logistics said:Some factories have had to cancel orders due to local lockdowns, while delivery services have been disrupted as warehouses in Pudong are closed until further notice.“.
Reuters news agency reported that the Tesla factory in Shanghai had to stop working since April 4. In response, CEO Elon Musk posted a post on his Twitter page, announcing that the company was going through a “particularly difficult time due to supply chain disruptions”.
The supply chain of goods in Shanghai is being greatly affected by the Covid-19 epidemic.
Amid reports of port congestion constantly appearing, Shanghai International Port Group (SIPG) on April 3 denied that there were more than 300 ships waiting to be unloaded at the port. In a statement to local media, SIPG said the port is maintaining normal operations and the average time that container ships have to wait to be unloaded is less than 1 day.
Contrary to the above statement, FourKites (global supply chain connectivity platform) also added: “The volume of sea freight of Guangdong province has decreased by 15% compared to the normal state when the blockade order has not yet taken effect.“In addition, the container ports in Shanghai are also seeing a significant decrease in cargo volume, with average 1-week cargo volume down 33% compared to March 12.
Source: Theloadstar
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