Golden Week holidays in China: Impact on Operations

Lockdown in Shanghai: impact on operational activities

Due to the COVID-19 restrictions in China, there is an impact on international air and sea freight traffic as well as the domestic transport sector.

Overview

• Due to the increasing number of COVID-19 cases in Shanghai, the city will be locked down starting 5 a.m. Monday, March 28, 2022 in order to contain the spread of the pandemic.
• A lockdown will be carried out in two phases: From March 28 until April 1, restrictions will apply to Pudong, the eastern side of Shanghai, and from April 1 to April 5, the same restrictions will apply to Puxi, the western side of the city.
• During the lockdown period, measures will be taken, including massive COVID-19 testing, suspension of public transport, shutdown of stores, halting production and business activities, and employees will only be allowed to work from home.

Impact on logistics

• Air and sea ports remain open and operational.
• Shortage of manpower remains an issue in all sectors due to strict quarantine regulations, especially for freight-related personnel, who have to present a 48-hours negative test report when entering highways, warehouses and ports.
• For air freight, the lockdown impacts the PVG gateway for both import and export. The import Gateway is operational and flights continue to land at the airport. Export flights out of PVG are restricted, the export Gateway is closed and handover is suspended. DACHSER is working on planning new flight schedules through alternative airports. The restrictions are expected to last for 7-14 days. Land transport is restricted as well.
• For sea freight, DACHSER has not yet received any carrier announcements about vessel delays or cancellations. Cargo arrived at CFS within the Pudong area is not affected, but shipments could be delayed due to potential vessel changes or insufficient cargo for consolidation. FCL trucks are allowed to enter Pudong and the port area with a 48-hours negative test report and an electronic Equipment Interchange Receipt (EIR). LTL trucking is yet to have any development.
• Trucking between Shanghai and neighbouring cities is restricted to drivers who can present a 48-hours negative test report. Delays in pickups and deliveries are expected.
• Customs operations are currently reported normal with no interruption.
• DACHSER's locations in Shanghai, including the downtown office and the PVG Airport office, have implemented a work-from-home policy since March 21, while the Huaqiao Warehouse remains open but loading and pickup is restricted. You can reach your local contact through the usual communication channels.

Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.

Update from China: Extension of the lockdown

Due to the rise in case numbers, increased COVID-19 restrictions were taken in China, which have now been extended. This has an impact on DACHSER's operational activities:

Overview

• The number of COVID-19 cases has been increasing in Shanghai. Although the original plan called for the lockdown to end on April 1 in Pudong, it has now been extended to April 5. Residents living in communities with positive cases must be quarantined for further 7 to 14 days.
• The lockdown in Puxi started on April 1 as planned, following the same measures as taken in Pudong. It is expected to end on April 11.
• During the lockdown, measures will continue to be taken, including massive COVID-19 testing, suspension of public transport, shutdown of stores, halting production and business activities, and employees will only be allowed to work from home.

Impact on logistics

• The impact for trucking is becoming more serious, with pick-ups and deliveries being severely affected.
• For air freight, import gateway of DACHSER in PVG is operational and flights continue to land at the airport. The export gateway of DACHSER remains closed and handover is suspended until April 11, 2022. In response to this, DACHSER is working on solutions via alternative airports. Land transportation is still restricted.
• For sea freight, as of now, DACHSER has not experienced any systematic schedule changes (i.e. port omission) and the port of Shanghai is still being served as scheduled in most cases. DACHSER is monitoring the situation very closely. Effective of April 4, all LCL shipments out of Shanghai this week and the coming week are suspended. LCL shipments that have already arrived at the CFS will be handled. FCL trucking is still possible, but more and more neighboring cities are banning trucks from Shanghai. DACHSER is taking actions to divert as many shipments as possible to Ningbo via different routes.  
• For suppliers located in Zhejiang province, FCL pick-up is available for shipping out of Ningbo.
• For FCL shipments from suppliers located in Jiangsu province, where local policy may reject trucks from Zhejiang province, DACHSER is trying to arrange barge service ex Taicang port to reach vessels out of Ningbo.
• For suppliers located in other provinces, DACHSER is offering solutions case by case, or wherever barge option is possible.
• DACHSER's locations in Shanghai, including the downtown office and the PVG Airport office, have implemented a work-from-home policy since March 21, while the Huaqiao warehouse is closed. You can reach your local contact through the usual communication channels.

Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.

DACHSER expands charter activities to include LATAM

In June and July, DACHSER Air & Sea Logistics organized eight flights from Hong Kong to Mexico via Canada. The new charter service offers customers additional, reliable capacity and is supposed to be continued in August.