COVID-19: Shenzhen enters citywide lockdown risking chaos in global supply chain

A surge in cases of COVID-19 in Hong Kong has led to the imposition of an immediate, week-long city-wide lockdown in nearby Shenzhen. Hong Kong reported 32,000 cases on Sunday whereas it is understood that around 60 cases were reported in Shenzhen itself over the weekend. As per China’s zero COVID-19 policy, Shenzhen’s 17.5 million residents will now have to undergo three rounds of testing.

The city includes the shipping terminals at Yantian and Da Chan Bay which are likely to face disruption in the coming days as workers are restricted to their homes. Operations at Da Chan Bay Terminals remain normal so far as there have been special arrangements made for frontline staff. However, Yantian Free Trade Zone will be closed from 14th – 20th March. No official restrictions to Yantian Port have been advised and vessels loaded and departing this week will depart as planned.

At this stage, it’s reported that all freight-related airports and operations are working as normal and where lockdowns are in place, our regional teams remain up and running and are working from home. Warehouses in Shenzhen are also closed, including Yantian, Shekou and Da Chan Bay and there is currently no consolidation or LCL available. Many major factories in the area are understood to have closed.

Elsewhere, Shanghai has placed some new restrictions on its residents following on from last week’s lockdown of the industrial centre of Changchun within the north-eastern province of Jilin.

Truck drivers entering Shenzhen are required to hold negative COVID-19 test results within 24 hours and are also required to test again upon arrival at the port. The city’s ports are setting quotas as to how many vehicles can enter daily and operate based on a reservation system.

Cross-border shipping has also been affected and these latest COVID-19 disruptions may lead into a whiplash effect impacting the progress being made in the US to clear port backlogs.

Uniserve continues to work closely with our network in China as the situation unfolds. We are also updating our One World platform which will provide real-time visibility of shipments that may be affected.

Please contact your Customer Development Manager for updates or to discuss any concerns.

Don’t forget that Uniserve also offer a range of outstanding airfreight services to complement your existing ocean and land supply chain solutions. For more information, please call 01375 412 331 or email info@ugroup.co.uk

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