Storage space available at DACHSER Shanghai warehouse

Lockdown in Shanghai: impact on operational activities

Due to the COVID-19 restrictions in China, there is an impact on international air and sea freight traffic as well as the domestic transport sector.

Overview

• Due to the increasing number of COVID-19 cases in Shanghai, the city will be locked down starting 5 a.m. Monday, March 28, 2022 in order to contain the spread of the pandemic.
• A lockdown will be carried out in two phases: From March 28 until April 1, restrictions will apply to Pudong, the eastern side of Shanghai, and from April 1 to April 5, the same restrictions will apply to Puxi, the western side of the city.
• During the lockdown period, measures will be taken, including massive COVID-19 testing, suspension of public transport, shutdown of stores, halting production and business activities, and employees will only be allowed to work from home.

Impact on logistics

• Air and sea ports remain open and operational.
• Shortage of manpower remains an issue in all sectors due to strict quarantine regulations, especially for freight-related personnel, who have to present a 48-hours negative test report when entering highways, warehouses and ports.
• For air freight, the lockdown impacts the PVG gateway for both import and export. The import Gateway is operational and flights continue to land at the airport. Export flights out of PVG are restricted, the export Gateway is closed and handover is suspended. DACHSER is working on planning new flight schedules through alternative airports. The restrictions are expected to last for 7-14 days. Land transport is restricted as well.
• For sea freight, DACHSER has not yet received any carrier announcements about vessel delays or cancellations. Cargo arrived at CFS within the Pudong area is not affected, but shipments could be delayed due to potential vessel changes or insufficient cargo for consolidation. FCL trucks are allowed to enter Pudong and the port area with a 48-hours negative test report and an electronic Equipment Interchange Receipt (EIR). LTL trucking is yet to have any development.
• Trucking between Shanghai and neighbouring cities is restricted to drivers who can present a 48-hours negative test report. Delays in pickups and deliveries are expected.
• Customs operations are currently reported normal with no interruption.
• DACHSER's locations in Shanghai, including the downtown office and the PVG Airport office, have implemented a work-from-home policy since March 21, while the Huaqiao Warehouse remains open but loading and pickup is restricted. You can reach your local contact through the usual communication channels.

Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.

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The will to get ahead

If Murat Kayki and his colleague Swapnali Kurale planned to meet in person, that would take time. A lot of time. More than seven hours in the air separate Nîmes in the south of France, where Kayki lives and works, from the Indian metropolis of Mumbai. They may come from different continents and different cultures, yet the two DACHSER employees have a lot in common. Both of them live and work in the city where they were born. It’s 38 years since Kayki came into the world in Nîmes as the son of Turkish immigrants. Today, he is head of DACHSER’s Nîmes and Avignon offices, and, like Kurale in Mumbai, has had quite a remarkable career.

Air freight market update | July 2021

Strong consumer demand has lifted global air freight volumes back to pre-COVID levels. The recovering economy and the rise of e-commerce are remarkable growth factors. In addition, over-priced and unsustainable ocean freight forces customers to shift urgently needed shipments from sea to air freight. 

In relation to container shipping, the price for air cargo has dropped significantly, being only 6 times more expensive in May 2021 compared to 12 times prior to the crisis, making air cargo more competitive. In addition, the overall situation in the ocean freight market causes raising demand in air freight.

The air freight capacity will remain restricted due to missing belly space and it is expected to take years to recover the passenger flight capabilities. This global imbalance of demand and supply is expected to continue and rates will be on the upper level for the next upcoming months.

Already well established for an extended period of time, DACHSER has created additional capacity by offering weekly premium freighter capacities

• one-way from Asia (Hong Kong & Shanghai) to Europe as well as
• rotation between Europe and the US. 

The latest new DACHSER Air Network connection has been established in June and July with eight flights from Hong Kong to Mexico via Canada. Find out more information about this service.

Please click the button below to read the latest Indexes on Supply & Demand and Oil Development.

In case you need any additional information related to DACHSER’s air freight services and the current market development, please do not hesitate to contact your local DACHSER Air & Sea Logistics sales contact.