As part of China’s COVID Zero strategy, international shipping giants confirmed that crews are required to face a seven-week quarantine.
Chinese seafarers returning to the country are mandated to quarantine. In addition, vessels are prohibited from refreshing their crews and bringing on new members for two weeks.
Shipowners and managers have had to re-route ships. This has resulted in additional shipping delays and different staff. Many of these large companies, including Evergreen and Ocean Network Express, have informed customers that they are suspending bookings for cargo destined for smaller ports.
“China’s restrictions cause knock-on effects,” said Guy Platten, the secretary-general of the International Chamber of Shipping, in a statement. “Any restrictions to ship operations have an accumulative impact on the supply chain and cause real disruptions.”
This has prompted shipping operators to urge Beijing to relax its COVID restrictions or, at the very least, prioritize the shipping industry. If not, market analysts say, China would be responsible for exacerbating the international supply chain disruption and trigger a ripple effect across global commerce.
Moreover, authorities have barred more than three Chinese seafarers on a flight to the mainland, potentially postponing their return home for a couple of months.
Because China is a critical location for the shipping sector, congestion has significantly ballooned this year. According to IHS Markit and Bloomberg data, the congestion rate—the number of anchored container ships waiting—is between 60 percent and 70 percent, as more than 250 ships are in the anchorage area.
Chinese officials defended these actions, arguing that the country has seen an increase in imported infections and higher case counts of symptomatic infections. This comes as the rest of the world now grapples with fresh coronavirus waves, restriction measures, and concerns over the Omicron variant.