Supply chains and logistic operations out of China face further pressure over the coming weeks as a series of new lockdown measures have been put in place in Shanghai and Shenzhen.
Shenzhen being one of China’s major manufacturing location has once again gone into lockdown forcing many companies to close their doors for at least 7 days as China deals with the worst Covid 19 breakout since 2020.
With China being home to several shipping ports, including Yantian, Shanghai Pudong, Shenzhen and Ningbo, many ports will be subject to major disruptions during the next few weeks if not more resulting in many importers and exporters facing huge disruption to their supply chains.
Many freight operators have advised customers that there is no direct hit on ocean terminals and carrier operations but there is a potential impact on ocean freight due to trucking restrictions outside Shenzhen or the relevant locked-down areas. There is reported trucking restrictions for vehicles traveling in and out of Shenzhen, which means no cargo from outside the restricted area can enter.
With these new restrictions coming into play many importers and exporters may see an increase in transit time as many ocean operators may have to delay departure dates until trucking companies reach the relevant ports to ensure the vessel capacity is cost effective. If not, many customers could begin to see a further price increase on their rates with expected cost of shipping containers between China and the US beyond the current record highs that have exceeded $20,000 per 40ft .
