Tuesday, 15 March 2022

Shenzhen lockdown: Ports operational but warehouses closed

The southern Chinese port city Shenzhen has started a seven-day Covid-19 city-wide lockdown, which is impacting landside logistics, but ports are operating normally.

Under the lockdown that started on March 14, public services and daily supplies are operating. However city transportation has been suspended.

The regional container hub, Yantian International Container Terminal announced that it maintained normal operation since the escalation of local Covid-19 prevention and controls and is making great efforts to keep the supply chain running smoothly in Great Bay area, as well as the materials supply supporting Hong Kong.

A Covid outbreak last year in Yantian port that closed around two-thirds of capacity for a three-week period sent shockwaves through the supply chain.

Chiwan container terminal and Dachan Bay terminal also reported stable port operation amid the current situation. 

Shipping lines Maersk and OOCL said in customer advisories that the three ports were working normally.

However, landside logistics are likely to see delays. Maersk said: “The overall landside transportation situation is dynamic subject to change. Trucking service for now is still available providing the drivers hold negative Nucleic Acid Test (NAT) report requested by local governments. We foresee the overall trucking operational efficiency will be reduced significantly due to the frequent NATs, especially in Hong Kong, Shenzhen, West Pearl River Delta, Shanghai, Yangtze inland ports, Qingdao and Tianjin.”

Several local logistics parks and warehouses announced that they have suspended cargo exit and entry business and are under close-off management. Maersk said warehouses in Shenzhen remained closed from 14 – 20 March.

Foxconn, which manufacturer iPhones, has halted operations of its factories in Shenzhen.

China is maintaining a strict zero-Covid policy, which is facing a major test with growing Omicron variant outbreaks.

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