New lockdowns in key Chinese transport hubs limp supply chains again

The new lockdowns in key Chinese port cities are hampering supply chains, despite a “muted” peak season. These restrictions are affecting the supply chain in Ningbo, Shanghai, and Tianjin. Out of these three, Ningbo is highly impacted with freight forwarders reporting disruption to all the areas around the port going into lockdown.
The international freight forwarder Davies Turner said the terminal, warehouse, and port are closed in Beilun. Even though the white list system for container truck drivers has been initiated, the containers are blocked in the parking lot itself, due to positive cases found. Even delivery by round trip truck is not allowed.

He further added that Ningbo is badly affected, but Shanghai can be offered as an alternate route, even if the extra cost may apply. But even Shanghai is facing an isolated lockdown and delays are expected even having normal operations. The port city of Tianjin is operating with reduced efficiency, and some areas are under closed-off management.

Meanwhile, the three ports are under tragic covid lockdown, the key air cargo hub, Zhengzhou, also went into lockdown affecting a million people in the Zhengyuan district.

AS per DHL, China’s zero covid policy has affected major manufacturing and exporting centers like Dalian, Guangzhou, Tainan, Shenzhen, and Chengdu. Even if the port operations do not have any restrictions, the manufacturing and inland logistics have been impacted to a great extent. However, there is a good side as the muted peak season has led to a downward shift in freight rates that has helped ease congestion. Dominque Von Orelli, global head of ocean freight at DHL said that even though the global supply chain is facing disruptions due to the lockdown, the service levels from liners have improved as congestion eases and more capacity freed up and the trend is expected to continue.