Deja vu, as new China lockdowns impact freight and supply chains

Date Added: 16 March 2022

Deja vu, as new China lockdowns impact freight and supply chains

As a provider of international freight and logistics services, Davies Turner  got a sense of deja vu this week with the news that China’s zero-covid strategy has seen major cities lockdown in response to a surge in cases during March. Shanghai and Xi'an have implemented lockdown measures, while the port city of Shenzhen started a seven-day full lockdown on March 14th.

Last year, a covid outbreak at Shenzhen’s Yantian port sent shockwaves through the supply chain. This time round, ports and terminals are said to be operating normally, but with land-side logistics impacted there are bound to be implications for global trade.

According to media reports, due to lack of labour, transport operations are slower and less efficient. Individuals, especially truck drivers, have to show negative tests at checkpoints and when crossing city borders.

The situation only serves to exacerbate delays and create bottlenecks, adding further pressure to an already tense supply chain.

Hopes that this year would see a stabilisation of rates, an opportunity for forward planning, or even a return to something close to normal are quickly dissipating.

As it stands now, 2022 has shaped up to be another year of firefighting for those managing international supply chains.

For more information about how Davies Turner can manage your international supply chain, please contact your local office.

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