Shipping from Shanghai limited - lockdown of China's major ports continues

An outbreak of coronavirus infection in Shanghai has forced Chinese authorities to take extreme measures. The country's largest port is closed. Restrictions at another logistics hub, Shenzhen, were lifted in early March 2022.

Despite the port closure, some warehouses, including TRANSPORTIR, in Shanghai itself continue to operate for now. Shipments are being accepted for accumulation and necessary processing. The first ready shipments will be immediately transferred to the nearest rental warehouse outside the quarantine zone and then removed through open ports and rail stations.

The PRC's policy creates pamping of logistics prices and forces cargo owners to make emotional decisions for the sake of expediting the removal of cargo by any route, including air shipment from China.

The Shenzhen situation showed a sharp decline in port cargo turnover. After the opening the volume has not recovered and according to experts is at a level of 57% of the dockage lockdown of the entire province of Guangdong, which includes the largest marine hub in southern China.

That is, carriers and logistics operators followed the trend of exporting imported cargo by any available routes, and under the accumulation for the waiting period of the end of the lockdown remained insignificant amount.

TRANSPORTIR confirms this trend. Due to district restrictions, our consolidation warehouse in Shenzhen was actually idle for only a week, but most of the cargo was shipped out for additional funds via bypass routes.

Although Shanghai and Shenzhen are not a "communicating vessel" system in logistics from China, we expect some recovery in the southern direction due to the closure of the eastern centre. Russian importers with a choice of supplier and still unpaid obligations with current sellers in eastern China may direct their eyes just to the open south, says Anna Saulskaya, CMO of TRANSPORTIR Group. The Shanghai story will be less impulsive, and more cargo will voluntarily "wait out" the removal of the lockdown.

In addition, based on the experience with Shenzhen, we have prepared an alternative hub for the delivery of groupage cargo from China near Shanghai. Part of the cargo flow with the sea shoulder will go quietly through Ningbo, and the temporary consolidation alternative is tentatively scheduled for the outsourcing terminal in Nanjing.

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