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Over the past several weeks, restrictions aimed at stopping the spread of COVID-19 have seen Shanghai’s industrial output and retail sales plummet, while supply chain ripple effects are expected to continue into June or July.

China and Europe still have critically limited available capacity due to prevailing market conditions including the Zero COVID policy in China and the ongoing war in the Ukraine. Shanghai Airport remains essentially closed given the current lockdown situation with no end date planned.

China is currently experiencing the biggest Corona outbreak since the pandemic began more than two years ago. Since the most populous country is pursuing a zero-covid strategy, there are extensive curfews in Shanghai and other large cities. This is causing bottlenecks in overland traffic in addition to more and more freight capacity being tied up by waiting ships at important Chinese ports.

South Africa suspended shipping at its main port in Durban after the heaviest rains in more than six decades and resultant flooding damaged roads leading to the harbour. Durban harbour is a key trade route for South Africa and its landlocked neighbours including Botswana, Zimbabwe and Zambia.  

While some residents were allowed to step out of their homes for the first time in several days, Shanghai enters the second week of an indefinite lockdown, leading to ocean carriers increasingly omitting calls at the world's largest sea port and preparing to announce more blank sailings.  

The Shanghai lockdown has been extended indefinitely, a move that casts further uncertainty over Chinese supply chains. The severe restrictions in the eastern half of the city, including Pudong, were due to be lifted on Friday, but nearly all areas remain under lockdown and local authorities have given no timeframe for its end.  

The COVID pandemic in China continues to spread across the country. Shanghai, unfortunately, has replaced Jilin Province as the leading hotspot in the nationwide outbreak. As a consequence, the Shanghai Government announced late last evening to launch a two-phase lockdown in the city as from early March 28, divided primarily between Pudong ( March 28 to April1 ) and Puxi ( April 1 to April 5 ).  

Congestion at North Europe’s container ports is on the rise again, causing ocean carriers to adapt their schedules and restrict import and export operations at terminals. 

Hong Kong's neighbouring city Shenzhen will be put under a citywide lockdown starting today, Monday, the local government announced after it reported 66 new coronavirus cases. The city with a population of around 17 million, across the border from Covid-hit Hong Kong, has told residents to get tested three times between March 14 and 20.  

The invasion of Ukraine by the armed forces of the Russian Federation is causing concern for some shippers who have their goods transported by rail along the Silk Road. Currently, rail transports on the Silk Road are running smoothly. 

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