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Global Category Intelligence
Q2 2025
Global Category Intelligence
Q2 2025
Shanghai Authorities Update Citywide Lockdown, Continued Impacts to Logistics Modes
April 21, 2022
After six rounds of mass testing, Shanghai local authorities have updated the lockdown of the city’s 16 districts into 3 categories, each relating to the severity of the COVID-19 outbreak. Effective the week of April 11, 2022, districts will be classified as Lockdown Area, Controlled Area, and/or Precautionary Area.
Due to the changing nature of the COVID-19 outbreak in the districts, some areas have now been classified as “precautionary zones”, signifying they pose the least amount of risk. As a result, some citizens of these zones are permitted to leave their homes. As a whole, the city at large remains on lockdown.
The controlled movement of public transport (buses, subways, ferries, taxis, and online car-hailing services) remains unchanged. Only vehicles related to epidemic control measures, emergency medical services, security, urban operations, and emergency response are permitted to use roads in these areas, after obtaining official approval.
LOGISTICS CHANNELS UPDATES
Air Freight
As the current lockdown continues, air export operations at Shanghai Pudong International Airport (PVG) are heavily impacted due to a lack of manpower. Trucking remains bottlenecked, as very few special licenses are granted for trucks to enter the PVG area.
As a direct result of the lockdown, many flights to the area are being canceled, with air cargo being rerouted to alternative airports, and cargo that needs magnet inspection or chemical certification for receipt is not feasible at PVG at this time.
Due to multiple operational challenges in Shanghai Pudong International Airport (PVG), most shipments are now being dispatched to Zhengzhou Xinzheng International Airport (CGO) directly or are consolidated in Nanjing.
The terminals and surrounding warehouse facilities in these areas are getting congested and operational efficiency has been impacted. Alternative airport options such as Hangzhou and Wuhan are developing contingency plans, should the situation in CGO continue to deteriorate.
Air Import is seeing an overflow of warehouses in PVG. For cross-trade shipments, PVG airport still rejects international transfer cargo from other airports. Shippers should consider using alternative arrival airports in the nearby provinces for the time being.
An alternative option is CGO, but the airport is limiting import flight operations due to congestion. CGO airport implemented a new traffic control pattern that will run for 14 days, beginning April 15, 2022.
Delivery and pickup operations continue. Only trucks with approved permits are running and as a result, efficiency is down overall. The terminal is congested with thousands of ULDs waiting for breakdown, and terminal operation is expected to be further disrupted with this new traffic restriction implementation. With import congestion plus highway constraints continuing, many airlines’ RFS (road freight services) to PVG has been suspended as a result.
Many airlines have extended their cancellations to SHA/PVG:
- CV: cancellation extended until 4/25/2022
- EY: cancellation extended until 5/01/2022
- QR: cancellation extended until 5/01/2022
- SQ: cancellation extended until 4/24/2022
- KZ: cancellation extended until 4/25/2022
- TK: extended until 4/22/2022
Ocean Freight
Shanghai port operations remain normal, including vessel operations, yard handling, and gate-in/gate-out. However, trucking service in/out is severely impacted by the city’s lockdown which has resulted in slow pick-up of imports, causing a ripple effect on yard density statuses.
Multiple carriers have since announced blank sailings or have omitted Shanghai ports entirely due to the lockdown. The two main terminals, (Yangshan and Waigaoqiao) remain open and operational, despite a significant drop in productivity due to lack of manpower. As a result of manpower constraints, port congestion is taking place and capacity has been rather tight.
Meanwhile, Waigaoqiao port encountered a temporary blip and was closed for 52 hours (from April 11 to 13, 2022) due to dense fog. Constrained berth waiting of around 3-3.5 days, (and even higher in WGQ Terminal 5 with 5+ days) was experienced due to a drop in labor resources resulting from COVID-19 infection cases.
These factors led to low productivity and increased waiting time. Yangshan port was also temporarily closed for a total of 22 hours (between April 12 to 13, 2022) due to dense fog.
The Tian Heng depot in the Pudong area has been locked down due to confirmed positive COVID-19 cases. Laden container pick-up is unavailable until further notice.
Ningbo port operations remain open and unchanged, despite a temporary closure for a total of 56 hours (from April 10 to 13, 2022) due to dense fog. Heavy berth congestion has occurred, with waiting around 2.5-3 days mainly due to the previous weather closures. Meanwhile at one of Ningbo port’s terminal (MSICT), the delivery of 4 new quay cranes began on April 11, 2022, which resulted in the already current congestion to be worsened, with the quay blocked until the end of April.
To minimize the impact, the port authorities have shifted some vessels to call other terminals on a temporary basis.
CFS/Warehouse
CFS in Shanghai for both import and export operations remain closed due to the lockdown.
Truck Mode Freight
Trucking modes have been impacted due to the development of the COVID-19 situation and lockdowns. Stringent measures have been implemented across the East China region recently. Roadblocks and temporary closures of most highway entrances, exits and service areas are also in place, affecting road transportation in Shanghai, parts of Jiangsu, and Zhejiang.
Trucking service is still possible, to a limited extent, and is constrained. Drivers must comply with the required procedures (provide a negative COVID-19 test and hold a valid transportation permit) for specific areas/locations. This has caused a significant limitation of available capacities as well increases in the cost of these trucking services due to scarce supply.
PVG Customs
PVG customs updates remain unchanged and operational. Physical declaration, EDI correction, inspection, and return business services remain on hold until further notice.
Courier Freight
DHL Express lifted the suspension of its outbound pick-up services in Shanghai (SHA), Zhejiang Area (HGH), and Jiangsu and Anhui Area (SZV, PVG) on April 8, 2022. With the continuation of these services, there is a per day, pick up per shipper maximum of 30 Kgs. only. This service limitation expired on April 24, 2022, and further updates will be provided on April 22, 2022. Inbound service delivery remains suspended till further notice.
FedEx announced on April 6, 2022, that the availability of their self-drop off (OB shipments) and self-pickup (IB) services to their Shanghai airport gateway facility remains unchanged until further notice. This includes its domestic services as well.
UPS announced the suspension of their OB service until further notice. Their IB service will be suspended until April 24, 2022 (subject to further updates).
Other Cities of China Status Updates
South China Cities & HKG: Shenzhen, Guangzhou, Dongguan, and Hong Kong – Open.
Central/East China: Suzhou, Wuxi, and Ningbo – Open. Kunshan has extended its lockdown until further notice.
North China: Beijing, Qingdao, and Tianjin - Open.
Key Takeaways
- The situation remains highly fluid and dynamic and warrants close attention and monitoring by all stakeholders collectively to mitigate risk and delays for all logistics channels and pipelines.
- Contact your regional logistics teams directly with any questions or assistance:
- Americas – Jeannie Carpenter (jeannie_carpenter@jabil.com)
- Asia – Francis Loh (francis_loh@jabil.com)
- Europe – Ruth Maciver (ruth_maciver@jabil.com)
Regards,
Francis Loh, Director Asia Logistics
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