Rising case numbers in China: impact on operational activities

Shanghai

As the epidemic has reached significant levels in Shanghai districts, rigorous actions have been taken, including massive COVID-19 testing and a lockdown of affected communities and residential areas. Airports, seaports, warehouses and depots are operating as usual, subject to the following:

• Due to the aforementioned measures and quarantine regulations, Shanghai is currently experiencing a significant shortage of workforce in all sectors, including administration, warehousing, and driver personnel.
• Neighbouring cities to Shanghai, including Suzhou, Taicang, Kunshan, Changzhou, Suzhou, and Hangzhou, are imposing restrictions on trucks coming from Shanghai and drivers must present a negative test result. Therefore, it is expected that pickups from and deliveries to Shanghai will become more difficult in the next 1-2 weeks.
• At this stage, we have not received any carrier announcements about vessel omissions. All barge operators are performing at normal levels, to ensure the connection to mother vessels in Shanghai. However, as the situation is developing rapidly, carriers may react accordingly if the driver shortage or truck restrictions lead to a serious container bottleneck.
• The locations of DACHSER in Shanghai, including the downtown office, the PVG Airport office, and the Huaqiao Warehouse, have established special working arrangements since March 14, whereby employees alternate between working from home and the office.  The local contact at DACHSER can be contacted through the usual communication channels.

Shenzhen

The authorities of Shenzhen city are implementing a lockdown from March 14 until March 20.  Precautionary measures include COVID-19 mass tests, suspension of public transport, shutdown of shops, production and business activities. Staff are only allowed to work from home.

• The airports and seaports are operating as usual. The air and sea freight operations of DACHSER are not affected. However, similar to Shanghai, there may be staff shortages at certain facilities such as customs due to COVID-19 testing and quarantine.
• Production and manufacturing facilities will be suspended temporarily, which will lower demand for air and sea freight. However, this may have a more far-reaching impact on the supply chain in the near future.
• Most of the warehouses stopped their operations until further notice.
• Sea freight LCL-CFS bonded warehouses are closed until further notice and shipments from Shenzhen are currently on hold. We will contact you directly if your shipment is affected.
• Local trucking within Shenzhen is not subject to any restrictions, and trucking companies are still offering their services, but the industry is facing the problem of a driver shortage due to lockdown and quarantine regulations.
• Truck services to and from Shenzhen is restricted.
• Cross-border trucking between Shenzhen and Hong Kong for non-essential goods is basically suspended. Transport of general cargo (commercial) is most likely to be arranged via feeder services.
• DACHSER employees in Shenzhen work from home and can be reached by email or mobile phone.

Dongguan

The authorities of Dongguan city announced a lockdown, effective from March 15 until March 21. Similar to Shenzhen, precautionary measures are implemented, which include COVID-19 mass tests, suspension of public transport, shutdown of shops, production and business activities, and staff are only allowed to work from home.

• Production and manufacturing facilities will be suspended temporarily, which will lower demand for air and sea freight, and bring substantial consequences to the international supply chain.
• DACHSER warehouses (bonded and non-bonded) in Dongguan are closed and resume operation after the lockdown is lifted.
• DACHSER employees in Dongguan work from home and can be reached by email or mobile phone.

Other major cities in China are mostly normal in terms of daily life and business operations despite some of them reporting a small COVID-19 outbreak.

DACHSER cooperates closely with all relevant parties to ensure that all shipments are handled properly. Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.