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An update on the impact on transportation

Gebrüder Weiss on the current situation in Shanghai

Although some sources report more positive news in recent days for plans of a lift of the lockdown, situation currently remains unchanged in terms of cargo operations. Some factories are open again, but these represent only a minor share of the overall industry so far. For example trucking restrictions remain in place for the time being, which is one of the most severe issues. 

  • Road Transportation is severely restricted. Due to the restrictions for drivers (testing, quarantine, additional checks), available capacity is limited. Restricted permission to leave / enter certain areas result in big delays or cancellations of booked transports.
  • The Port Terminals in Shanghai are operational, but productivity is limited due to the availability of staff and resources. Numerous container ships are waiting outside the port of Shanghai causing delays, more vessels might skip Shanghai call and divert to other ports. 500 containerships await berths stuck outside China ports.
  • The number of blank sailing announcements is increasing, ripple effect to be expected in the coming weeks in terms of vessel capacity, equipment availability and schedule reliability. This not only affects China but also North America and Europe.
  • Due to lockdown in Shanghai, large quantities of cargoes change to move out of Ningbo, but also here limited truck capacities are a major problem, because all Container Freight Stations (CFS) do not allow trucks entry which run from any epidemic areas. CFS have reached their limits and are not able to further accept LCL cargo and stuff containers in time. To make matters worse, laborers are physically exhausted by continuous work. To keep cargo flow, CFS have to start a new operation procedure to make clients send an on-line pre-application for warehouse-in. It does make drivers wait longer and bring suppliers and forwarders a lot of inconvenience.
  • Further solutions for feeder traffic via river ports in Jiangsu Province and other North and South China ports are under consideration, but likely will not be able to cover all volumes currently being delayed or shifted. These options of course would also be at risk if there are additional COVID-related closures in other cities/areas.
  • The Airport Pudong is still operational, but reduced staff causes delays as well.
  • Air Freight export from Shanghai is still possible but under heavy restrictions due to the fact that many airlines have canceled their flights and only reduced capacity is available.
  • Air Freight import to Shanghai is hardly possible, as most factories are closed and cannot accept the cargo. Almost all direct flights have been canceled.

Once lockdown restrictions calm down or will be lifted and companies resume production, a substantial backlog demand might occur. 

The situation is very dynamic and can change permanently. Our staff is monitoring the situation. Please contact your local Gebrüder Weiss representative for any questions.

For more information:
Merlin Herrmann
Gebrüder Weiss Ges.m.b.H.
Bundesstraße 110
A 6923 Lauterach
 T +43.5574.696.2169

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