Date: 15.03.2022

NEWSFLASH: China lockdowns and supply chain latest

Earlier today authorities in Langfang, which borders Beijing and Dongguan in the southern province of Guangdong imposed immediate seven-day lockdowns, joining Shenzhen, which started a seven day lockdown on Sunday, while the entire province of Jilin has been placed in complete lockdown and Hong Kong restrictions are continuing, as China’s COVID cases jump.

COVID cases doubled in the past 24 hours across the nation with attention turning to Shanghai, where Shanghai Pudong (PVG) Airport has been closed to inbound passenger flights and 106 diverted to 13 other cities, which will continue for six weeks, in a bid to stop the spread of COVID cases.

Shenzhen announced new COVID restrictions on Sunday, with a lockdown for the next seven days and non-essential workers staying at home. Adults must undergo three PCR tests in the coming days, and buses and subway trains are being halted. 

Our network office in Shenzhen will be closed this week, with staff working from home.

Foxconn, which manufactures iPhones for Apple, stopped its operations in Shenzhen on Monday, saying the date of resumption would “be advised by the local government”.

Toyota, shut its factory in in Jilin province, but did not give a timeline for when business would resume and Volkswagen shuttered operations in Changchun and hoped to reopen its factory on Thursday.

Local governments are making special measurements and arrangements, so that imports and exports are not inhibited. The airport is operating normally, though with reduced staffing levels and flights are being cancelled or redirected to other airports.

Customs and trucking services are operating normally although there are restrictions on where they can travel due to the movement of drivers, and while we have not yet been advised of any official limitations to Yantian Port, the offices of carriers in Yantian are closed and low operating efficiency is expected.

Until now, shipping lines in Hong Kong have largely been operating as usual, but the suspension of flights from Australia, Canada, France, India, Pakistan, the Philippines, Nepal, the USA and UK will be extended until the 20th April.

Hong Kong Air Cargo Terminal is operating under increased pressure, due to a reduced workforce of about 30%, while trucking services to Hong Kong via the Shenzhen border have been suspended and the alternative of using feeder vessels to Hong Kong incurring cost and transit time. 

China regional round-up

Guangdong – There are some backlogs and delays at the airport.

Nanjing – Nucleic acid test are required to enter. Otherwise situation is largely normal.

Ningbo – Normal operations for transport, offices and factories.

Qingdao – Air and ocean are operating as normal, but there is limited capacity at the port terminal, due to restricted worker numbers. 

Shanghai – High-risk areas are in lockdown, but there is no complete lockdown of the city. Air cargo and charter flights are operating, but the decisions to close Shanghai Pudong airport to inbound passenger flights will reduce capacity and put pressure on rates. Trucking services and ocean are operating.

Xiamen – Normal operations for transport, offices and factories

Some areas including Hangzhou, Wenzhou, Jiaxing have local measures in place, with factories and community closures based on local conditions.

Yantai, Weihai and Zibo have been locked down, which means trucking services cannot be provided to these cities and also means some drivers may not be happy to go to Qingdao.

Despite the challenging situation in many regions, we work closely with our network partners, carriers and own offices across China, to monitor the situation and find solutions for our customers, including time-sensitive shipments.

The situation continues to unravel daily and we will keep you advised as new announcements are made and market intel is received from our colleagues in China. It is expected further lockdowns will be applied and stay at home orders given to workers over coming days. We are monitoring closely and will advise if shipping lines, airlines or inland transport become affected and schedules are delayed.

We maintain long-term contracts with airlines, carriers and shipping lines that secure space and rates, to provide the best alternatives and options, whatever the situation.