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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.

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We sincerely regret any inconveniences caused to our customers due to the pandemic. At DACHSER, we have contingency measures in place and will offer our customers the best alternative solutions to keep the supply chain running. Anyhow, the situation at ports, airports or customs authorities might cause delays. Furthermore, the capacity situation on the global airfreight market is very tense as there are basically no passenger flights operating at the moment.

At the same time, DACHSER has installed strict hygiene measures (e.g. home office) to ensure a safe working environment and to do our part in stopping the spread of the virus. DACHSER is trying to keep the impact of these measures as low as possible, however, together with the official measures by the governments, the precautions may lead to some delays in the operations.

In case of any questions and/or queries, please feel free to contact your local DACHSER representative.

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