Shanghai is under lockdown and some logistics companies have suspended operations

Last week, the lockdown in some areas of Shenzhen had a significant impact on the shipments of foreign traders and sellers. Just one week later, some areas of Shanghai also implemented lockdown management, and the logistics situation also changed accordingly.

On the evening of March 27, Shanghai issued a notice on the zoning lockdown and nucleic acid screening: Starting from 5:00 on March 28, Shanghai will implement nucleic acid screening in batches based on the Huangpu River. In the first batch, Pudong, Punan and adjacent areas will be sealed off first, and nucleic acid screening will be carried out. The lockdown will be lifted at 5:00 on April 1. At the same time, key areas in Puxi will continue to be sealed off. In the second batch, starting from 3:00 on April 1, in accordance with the principle of advancing in batches, the Puxi area will be sealed off and nucleic acid screening will be carried out. The lockdown will be lifted at 3:00 on April 5.

Some logistics companies suspend multiple businesses

The lockdown has had an inevitable impact on transportation and corporate production in the affected areas. As the home of the world's largest container port, Shanghai is most concerned about whether goods can be transported normally and whether production operations in the port area can remain normal during the period of zoned and batched lockdown.

It is understood that the first batch of sealed-off areas accounts for more than 60% of Shanghai’s urban area, among which Pudong, Punan and adjacent areas are the gathering places of warehouses and logistics companies. They are also the only way to Yangshan International Deep-water Port.

Just after Shanghai issued the notice, some logistics companies in the first batch of sealed-off areas issued notices one after another, suspending warehousing and shipping services, cooperating with epidemic prevention and control requirements, and completely stopping operations until 5:00 on April 1, 2022.

The stagnation of business has caused great distress to many freight forwarders and sellers. "The impact of the epidemic is too great. We have tried many ways but still cannot ship the goods. Customers are urging us every day. I really want to give up and just lie down..." said a freight forwarder. Another seller is worried about whether the goods in Shanghai Port will be delayed again. "The goods that have not entered the port cannot enter. There will definitely be delays, but I don't know when the goods that have been loaded in the container will be able to leave."

Shanghai Port Waigaoqiao Port Area and Donghai Bridge are both located in Pudong New Area, in the first batch of lockdown areas, and have been under lockdown since 5:00 a.m. on March 28. As a public service enterprise, Shanghai Port Group also issued a notice during this period, stating that all production units in the port will maintain 24-hour operation.

In fact, the production and operation support personnel of Shanghai Port Group have recently moved into the temporary dormitories of various production units and implemented closed-loop management to ensure normal operations around the clock.

Although the epidemic in recent years has made sellers and foreign trade people gradually accustomed to the current logistics situation, and acquiesced that port congestion in many European and American countries has become the norm, the suspension of two major ports in Shenzhen and Shanghai within two weeks is still a new blow to sellers and foreign trade people, and its cumulative effect on the global logistics industry is self-evident.

Some industry insiders pointed out that although the port was not closed during this lockdown, at present, the port operation and terminal operation efficiency will inevitably be affected, and the shipping and logistics industry in Shanghai Port will be relatively chaotic in the short term; in the long run, this round of domestic epidemic may cause a new round of freight rate increases, and the delivery time of goods is likely to be delayed.

Some pick-up points have stopped operating! Truck collection operations are hindered

Although Shanghai Port requires all production units in Hong Kong to maintain 24-hour operation except in extremely bad weather conditions, it can be seen from the announcements of the port and shipping companies that due to the impact of the epidemic, some container pick-up points in Shanghai have stopped operating. If necessary, the container pick-up points can be changed to operational yards as required, such as Shanghai Port's Sinotrans Hudong Yard, Zidong Tengfei, etc.

In addition, since the goods of many foreign trade factories in the Yangtze River Delta need to be transported through the Port of Shanghai, container truck transportation has become a focus of attention for many people in the industry.

It is understood that many places in Shanghai have not given special permission to trucks. Among them, the expressway exits of the Outer Ring Tunnel and Nicheng are closed, and trucks and other vehicles are not allowed to pass; Nanlu Highway is closed, and the entire highway is completely impassable; Waigaoqiao Dongsen, Liangkun Yard, Gangcheng Road Yard and some yards outside the high-speed bridge area have been closed.

In addition, due to the closure of various places in Pudong , the EIR that drivers are currently required to print out cannot be implemented. It is recommended to use the electronic EIR displayed on the SIPG APP . Due to the epidemic in Shanghai, other places have stricter control over Shanghai vehicles. Yixing has not allowed Shanghai vehicles to leave the highway, and all Shanghai vehicles have been persuaded to return.

According to the latest data from the truck platform Platypus, since March 28, the control measures on Shanghai vehicles at highway intersections in many areas of Jiangsu, Zhejiang and Anhui have been upgraded again, including the direct return of Shanghai vehicles in Tongling, Zhuji and other areas, and the direct isolation of truck drivers from Shanghai after getting off the highway in Xianju .

At the same time, in order to curb the epidemic, Shanghai has implemented traffic control in some batches of nucleic acid testing areas.

All highway toll stations in key areas such as Pudong New Area and adjacent areas east and south of the Huangpu River will be temporarily closed from 5:00 a.m. on March 28 to 5:00 a.m. on April 1, and cross-river tunnels and bridges will be suspended.

All highway toll stations in key areas such as Minhang District, Xuhui District, Jiading District, Huangpu District and adjacent areas west of the Huangpu River , including other areas except the first batch, will be temporarily closed from 3:00 on April 1 to 3:00 on April 5, and cross-river tunnels and bridges will be suspended.

Traffic control will be implemented in the direction of exiting Shanghai from 5:00 on March 28 to 3:00 on April 5, including G2 Beijing-Shanghai, G15 Zhuqiao in Jiading District , S26 Shanghai-Changsha, G50 Shanghai-Chongqing, S32 Shenjia Lake in Qingpu, G60 Shanghai-Kunming in Songjiang, S36 Tingfeng in Jinshan, G15 Shanghai-Zhejiang, and G40 Chongqi in Chongming . Drivers and passengers in vehicles leaving Shanghai must hold a negative nucleic acid test result within 48 hours , and no passage will be allowed without the certificate.

In addition, due to epidemic control, No. 1333 Wenju Road (Pudong Airport) was closed on March 28. At present, the Airport General Office has arranged relevant support personnel to start online business acceptance, including document review and inspection for processing.

A freight forwarder stated that due to the lockdown in Shanghai, many flights will be temporarily cancelled. In order to meet the transportation needs of existing goods, arrangements will be made to transfer them to Ningbo for shipment. However, Ningbo has also issued relevant requirements on the actual goods entering the warehouse.

If the production factory of the goods to be warehoused is in a medium- or high-risk area, or the purchasing drivers have been to medium- or high-risk areas within 14 days, they are not allowed to make an appointment or enter the warehouse; drivers coming to Ningbo from other provinces and those with an * in their itinerary code must present a nucleic acid test certificate within 48 hours on the spot when entering the warehouse; drivers must wear masks at all times when entering the company's premises, are not allowed to leave the unloading location at will, and must not get off the vehicle unless necessary.

Based on the above, the lockdown in Shanghai has put cross-border sellers and freight forwarders in a tense situation, with a relatively large impact. However, the reduction in shipping capacity caused by the epidemic has become an irreversible reality. It is expected that logistics prices are likely to rise again, and the time for cargo transportation will also be extended. Sellers with shipping plans need to prepare in advance.

Shanghai

epidemic

logistics