With the annual Chinese New Year holiday set to start in just two weeks, shippers are under intense pressure to get material ready and make all necessary arrangements to get bookings fulfilled on the last vessels sailing before the holiday.
However, a new set of COVID-19 cases in major shipping regions throughout the country could add a further complication to meeting these necessary schedules. Below is an update of the regions currently experiencing issues—along with their status, as of January 10.
Covid cases found at the beginning of January caused a shutdown of the Beilun district just outside of the port area. With many truck operators living and moving through the area, these restrictions limited both the driver capacity and the flow of containers in and out of the terminal.
As of January 8, restrictions were downgraded, as the spread of positive cases has stopped. This has helped increase trucking capacity and ability to get through the port without disruptions. The possibility of issues remains but the situation is improving.
Tianjin (Xingang Port)
Over 40 positive cases were found this weekend and Monday. There is a residential lockdown and most all companies are working from home for at least 48 hours. Only truck operators with test results showing negative within 48 hours are allowed to work as usual.
This is expected to cause disruptions at the port, as it will limit truck capacity and labor at the ports. This could cause significant disruptions to cargo in and out of the port if the situation does not improve. It will be reassessed in 48 hours.
Shenzhen (Yantian Port)
After a few COVID-19 cases were found on Friday, the city required a mass testing program to prevent the spread. Sports and entertainment venues have been closed along with other gathering areas, but businesses remain open along with the ports themselves.
At this time, there is no significant threat of disruptions to the port and trucking operations, if the spread is contained.
Mohawk Global will continue to monitor the situation closely and communicate any impactful changes.