China: Covid's progress and consequences on the supply chain

As the cases of Covid increase, the Chinese government does not hesitate to take restrictive measures or extend them.(cf.China: back from containment and impacts on supply chain). The cities of Jilin, Changchun, Shenyang are confined. Every day the list expands and changes. In Shanghai, schools and public parks have been closed since the beginning of the week and residents are asked to work at home. In Shenzhen, after seven days, the restrictions were lifted.

These various measures directly impact the activity of logistics infrastructure. In confined areas, they are slowing down due to labour shortages and freight is referred to other ports or airports which normally operate. In Shenzhen and Dongguan, since the reopening, there has been port and airport congestion due to the accumulation of unshipped cargo. Some shipping companies remove ports of call in order to avoid bottled ports, such as Hapag-Llyod, for example, which has announced no longer serving Hong Kong and Qingdao.

With the virus and the zero Covid policy advocated, we have to expect new measures that inevitably disrupt supply chains. We must be agile and find alternative solutions when this is still possible.

To go further...

• Sales Administration (SDA) Subcontracting Export
• Import/export flow management (air & maritime)
• Diagnosis of international logistics flows

Thanks to ourGlobal Supply Chain Management Experts, move from a transport policy at least so-called to a realsupply chain strategyefficient, secure and efficient!

Source(s):ACTE International Network

Editor(s):J. GOODTON