Shanghai cargo disruptions continue despite loosening restrictions

Cargo operations in Shanghai continue to face disruptions, despite government officials implementing a three-tier system for COVID-19 follow-up prevention and control measures on April 11 amid a recent surge in positive cases of the omicron variant. Local areas will be classified as “locked-down area,” “controlled area,” or “precautionary area,” Expeditors reported in today’s update. The three-tier disease control system now allows some residents to leave their homes, collect food deliveries or take a walk based on results from nucleic testing and risk levels. The Shanghai Government also released its first guideline on April 16 for industrial enterprises to return to work, according to Expeditors. So far, there are more than 650 companies on the whitelist. [caption id="attachment_67337" align="alignright" width="400"] Photo: China Southern Airlines[/caption] Meanwhile, additional cities have been implementing COVID-19 restrictions, including Taicang, Wenzhou, Yiwu, Ningo and Jiangxing, according to an April 11 advisory from SEKO Logistics. These restrictions have only worsened the trucking services in the area. There also have been reports of outbreaks and travel restrictions at major inland ports including Nanjing and Guangzhou, which may lead to full lockdowns, Freightos’ Head of Research Judah Levine said in an April 14 update. Shanghai airports face ongoing cancellations Flight cancellations in Shanghai have continued, with ANA Cargo still suspending flights to and from Narita (NRT), Kansai (KIX) and Shanghai (PVG) as of April 15, as well as flights from PVG to Haneda (HND), according to the latest update. Qatar Airways flights to Shanghai are also cancelled until April 21, according to an April 13 update from Crane Worldwide Logistics. Around 150 canceled arrivals and 168 canceled departures were recorded at PVG between April 17 and April 20, according to flight tracking software. Destinations include Zhengzhou (CGO), Chengdu (CTU) and Kuala Lumpur (KUL) from carriers like China Airlines and Cathay Pacific. While these cancellations are significantly fewer in number than the 900 additional flight cancelations posted in early April , around 893 flight statuses remain unknown at PVG. Meanwhile there are roughly 151 canceled arrivals and 144 canceled departures at Shanghai Hongqiao International Airport (SHA), according to flight tracking software. About 710 flight statuses remain unknown. Inbound acceptance of dangerous goods (DG) and temperature-controlled cargo also remain suspended at PVG, according to an April 14 notice from Finnair. Expeditors noted that the embargo on DG is due to cargo congestion at PVG. Alternative options and trucking challenges To work around the mass cancellations at PVG and SHA, forwarders have continued to opt for alternative gateways. For instance, Expeditors has suggested Wuhan (WUH), CTU, CGO and Chongqing (CKG) as “feasible options” for air exports. However, CGO has suspended inbound air shipments to PVG. While PVG terminals and customs remain open, limited manpower due to the lockdown has been driving delays, Expeditors reported. Trucking services in and out of the city also continue to face challenges, as the required traffic permit is valid only for 24 hours and on specific routes, SEKO logistics reported. Further challenges arise when booked trucks can be re-directed and ordered to transport aid supplies by government officials. For truckers picking up inbound cargo from PVG, a driver is required to present both a negative PCR test within 48 hours, as well as a negative antigen rapid test within 24 hours, according to Expeditors. PVG, which ranked No. 3 in Air Cargo World’ s most Top 50 Cargo Airports rankings based on 2020 throughput, maintained its ranking based on 2021 throughput, according to preliminary results from Airports Council International. The Air Cargo Tech Summit, the new airfreight logistics event presented by Air Cargo World , will take place live in Miami from June 6-7. Learn more and register here.

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