Shanghai lockdown extension disrupts airfreight

The city-wide lockdown in Shanghai, initially expected to end today, has been extended indefinitely amid a rise in COVID-19 cases, causing further disruptions to cargo operations at Shanghai Pudong International Airport (PVG) and Shanghai Hongqiao International Airport (SHA). As containment attempts persist for the latest COVID-19 outbreak persist, the city’s testing campaign also continues. “At this moment, Shanghai will continue the current lockdown, until follow-up measures are decided based on the result of yesterday’s citywide nucleic acid testing,” according to an April 5 statement from Crane Worldwide Logistics. [caption id="attachment_95628" align="alignright" width="405"] © Can Stock Photo / Gudella[/caption] Although Shanghai’s ports and airports are operating, labor shortages due to lockdown restrictions are significantly slowing operations, Freightos Head of Research Judah Levine said in today's weekly update. The labor restrictions have also impacted the availability of goods as manufacturing and warehouses remain closed and trucking options are limited. Flight cancellations spur cargo delays Many airlines have announced additional cancellations, subsequently prompting cargo delays due to limited labor, flights and trucking capacity. For instance, all Delta Cargo flights to and from PVG have been suspended due to the local COVID-19 restrictions, according to an operational advisory published today. In turn, imports, exports and transferred cargo to and from PVG will be embargoed until April 18. Around 288 PVG arrivals have been canceled so far between April 4 and April 7 from airports like Hong Kong (HKG), Incheon (ICN), Bangkok (BKK) and Chengdu (TFU), according to flight tracking software. PVG reported roughly 266 canceled departures from April 4 through April 7. Meanwhile at SHA, there have been roughly 209 cancelled arrivals and 208 cancelled departures, according to flight tracking software. Although the number of upcoming cancellations at PVG and SHA is significantly fewer in number than the more than 1,800 cancellations posted a week ago , more than 2,000 flight statuses remain unknown at both airports. Rates on the rise As a result of reduced handling services and capacity, cargo rates on flights from Shanghai to North Europe are $11.92/kg, up 43% compared to last week before the outbreak hit, according to Freightos’ update. In the meantime, public transportation services in the city are still suspended, and residents must continue to stay at home, Crane Worldwide reported. An additional round of COVID-19 testing will follow the initial sample collection as a verification measure, and depending on screening results, the city will decide on any changes to the restrictive measures put in place. An embargo on the acceptance of inbound dangerous goods (DG) shipments at PVG was also put into place yesterday and is tentatively scheduled for two weeks. Temperature-controlled United Cargo inbound shipments requiring cooler or freezer storage as well as DG cargo are also temporarily restricted at PVG due to staffing issues, according to an April 1 advisory. PVG ranked No. 3 in Air Cargo World ’s Top 50 Cargo Airports rankings, based on 2020 throughput. 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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