Posted on 04/12/2022 10:22:19 AM PDT by blam
Rerouting freight to avoid the extended lockdown in Shanghai, where daily confirmed COVID cases topped a record 17,000 this week, is becoming more difficult and expensive as cargo facilities in other Chinese cities become overcrowded, logistics companies and carriers warn.
The logistics challenges for ocean and airfreight in Shanghai are extreme.
More than 90% of truck capacity is out of service. Trucks are prevented from moving in and out of the city without a special permit, which is only valid for 24 hours and only on specific routes. “Even with this arranged, it is possible for booked trucks to be commandeered by the government to transport aid supplies,” Seko Logistics said in an update for clients.
Most warehouses in the city are closed. Pactl, the large airport cargo terminal operator, only has skeleton operations.
Limited truck access to Shanghai port terminals is causing shipping containers to pile up and slowing ship transfers. Seko said its team in Shanghai has seen an 80% decrease in container pickups from outside the lockdown area because of driver shortages and restrictions, with drivers requiring a special pass and negative COVID test results.
Mediterranean Shipping Co., the world’s largest container vessel operator, on Thursday said it will begin offloading refrigerated containers at other ports because there are no available power plugs to connect to in Shanghai. Unless customers request a specific change in destination within seven days, reefers will be discharged at intermediate or alternate ports of the carrier’s choosing. Additional freight charges for transshipment, storage, equipment rental and electrical connection may apply.
“If the situation does not improve soon it may be necessary to abandon the voyage and advise you from where your container may be collected,” MSC said in a customer notice.
Ocean Network Express also said overcrowding at two Shanghai container terminals might prevent its vessels from discharging reefer boxes.
Several ocean carriers have announced they will skip berthing at Shanghai due to traffic restrictions, which Seko said will intensify congestion at the terminals once restrictions are lifted.
Congestion spreads
Meanwhile, terminals at the Port of Ningbo are filling up and facing equipment shortages as more freight is diverted from Shanghai, freight forwarders report. Freight rates from Ningbo are rising as a result.
AIT Worldwide, based in Itasca, Illinois, notified customers that cargo terminals at other airports are now reporting delays of their own with Shanghai Pudong International Airport effectively out of action.
In Zhengzhou, for example, inbound and outbound air shipments can take up to seven days to get through a queue and another three to four days to be processed. Import operations at the Nanjing airport are suspended. And authorities are requiring all imported cargo in Qingdao to be stored in the terminal for 10 days following disinfection.
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(Source: AIT Worldwide)
Logistics providers are also redirecting cargo to airports in Wuhan, Hangzhou and Nanchang.
International passenger and cargo airlines have responded by canceling the majority of flights in and out of Shanghai Pudong airport. Delta Air Lines, for example, said this week it won’t process cargo there until at least April 18. Most international cargo flights are now being operated by Chinese airlines, said Itasca-based Seko Logistics, which has moved more than 10 tons of airfreight through alternate airports since the Shanghai restrictions began nearly two weeks ago.
Seko also reported that an outbreak in Quzhou is spreading, with shipments scheduled for departure in the coming weeks needing to be postponed until the government settles on a course of action.
Nick Bartlett, director of CBIP Logistics in Hong Kong, told FreightWaves cases of infection are increasing in Suzhou and all of Jiangsu Province and that Zhejiang is likely to next feel restrictive measures.
“We have cargo stuck on trucks, in warehouses and container freight stations,” in Shanghai and no new containers are able to reach the port there, he said via email.
The lockdown in Kunshan, an important electronics manufacturing hub next to Shanghai, is supposed to end by the end of the week. Truck movements in and out of the city are severely restricted, except for pandemic relief supplies approved by the local government, Seko said. Trucks can only shuttle within the city between warehouses and factories with special approval. The restrictions are impacting the Wuxi Logistics Park and Seko clients with suppliers in the city.
I could swear I have seen this movie before.
They still use Chinese fabric, in most cases. Just remember that "Made in the USA" does not mean "Made by Americans".
“Because lockdowns work” according to FR vaxx groupies a year or two ago.
I thought Stihl is American made, must be new?
Stihl was originally a German Company(West Germany for awhile)
They assemble many of their outdoor power tools sold in North America in VA. I believe VA beach.
The parts come from around the world.
I have a battery operated AK series hedge trimmer I bought three years ago. It was made in Austria. The battery was made in Germany.
They are generally well engineered tools. The only problem is the parts can be more expensive because they are only sold through their dealerships.
One of the Wrangler Jeans I bought was made in Lesotho. I was ignorant of the location of this country. So, I looked it up on the Google. It is entirely inside the country of South Africa. It is about the size of Rhode Island.
I went with the Makita for the battery hedgetrimmer, and am pleased. Both my gas chainsaws are Stihl and one weed trimmer.
Sorry, I was incorrect:
STIHL is headquartered in Unterlangkampfen, Austria and has 30 office locations across 29 countries.
Virginia Beach is their North American headquarters and an assembly site.
Very good post. I agree.
Is the CCP trying to crash the Chinese economy for some reason?
I also bought a Stihl battery operated chainsaw. It is perfect for trimmer branches. It takes the same battery as the hedge trimmer.
Eventually, when my Echo trimmer dies I will buy the battery operated Stihl too in the same series.
I have a Makita drywall gun I bought in 1990. Plug in. Still works fine I think. I have not done any drywall work in a long time.
Makita always made the best power tools. At least, back in the day. They never cheapend the tools to sell through the big box stores like everyone else.
What % of their population is “vax”d?
I could swear I have seen this movie before.
LOL...it’s like the Hellyweird remakes....they can’t come up with anything original, anymore.
I wonder what wonderful new disease they cooked up requiring these lock downs.
I am not sure of the percentage, but
China is one of those "Zero Tolerance" Covid countries,
just like New Zealand when they (N.Z.) went into total 'shut down'.
There is mandatory covid testing throughout the country.
I have a Makita circular saw and a 10 inch chop box I bought new in 1986. Both still work fine.
There are no available electrical outlets at the Shanghai Port - this means the food shipped in Refer containers will spoil unless they find a place to plug in these boxes.
I have Greenworks 20 & 40 volt yard and workshop tools. They have worked well during extensive usage. No idea where they are made.
yep, I have two cordless drills, one from around 1990, still works.
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