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Update from China: Disruption at airports

The current lockdown situation in Shanghai is now leading to further and serious disruptions of airfreight supply chains to and from (North-) China. 

DACHSER has been notified by major airlines, including but not limited to Chinese carriers such as China Southern Airlines (CZ), China Cargo Airlines (CK), China Eastern Airlines (MU), that with immediate effect all their flights (in- and outbound) to Shanghai (PVG) and to Zhengzhou (CGO) will be suspended until further notice. The impact on capacity on these very important trade lanes is vast and significant and is starting to send ripples to other airports in Asia. 

Due to the increased COVID-19 measures that have been taken by authorities in the greater Shanghai area, the operational handling at Shanghai Pudong Airport is severely affected. Shipments that have arrived at the airport are not being handled due to limited capacities and are facing heavy delays. Most airlines have therefore decided not to fly additional cargo into Shanghai and Zhengzhou which is an important airfreight hub for China.

This development has resulted in an increased usage of alternative airports (such as Beijing, Chengdu, Qingdao and Nanjing but also airports in South China) in combination with road feeder services to connect to such alternative airports. Many of the alternative airports are now reaching or already exceeding their capacity limits as well.

As of now we do not know how long this situation will persist and it is not foreseeable when airlines will resume to regular services between North China and Europe. All major economic centres in North China are increasingly affected with important industrial cities such as Ningbo, Suzhou, Beijing, Tianjin, Shanghai, Dalian, Jinan, Wuhan, Qingdao, Shenyang and Changchun.

The teams of DACHSER will monitor the development of the situation very closely and do their best to make the supply chains as seamless as possible. Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.

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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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