Asian port traffic affected by COVID-19

The pandemic continues to do its things, so much so that a new wave of coronavirus is affecting traffic in Chinese ports, as well as the supply chain, as is the case with the reduction in capacity detected in road transport from the country.

This alarming situation is causing infections to increase again in various Chinese cities, including the capital Beijing, Hong Kong, Shenzhen, Shanghai and Qingdao, among others.

In these cities are some of the main port enclaves of the country, especially for export traffic, with which the health situation is being transferred to the supply chains of the Asian giant, due to the great eagerness that the Chinese authorities put to control any outbreak.

In this way, in Shanghai, the authorities focus their efforts on maintaining stable working conditions to maintain the flow of goods in the country’s main port. In turn, some neighborhoods have been blocked, giving rise to many international clients complaining that they have closed the administrative windows to send documents and that nobody attends to them.

However, in Hong Kong, the wave affects land transport, with a reduction in capacity of around 70%, according to freight forwarders in the city, which is causing significant delays in customs controls that imply additional delays. in the air cargo services that depart from there.

At the same time, the reduction in land transport capacity seems to not only be a circumstance that directly affected Hong Kong, but is common to the entire country, causing concern in the supply chains that start from the Chinese production centers to the main outlets for export. Stock prices in China and Hong Kong have plunged in recent days, causing losses in the Chinese stock market.

The closure of Shenzhen extended to another city to the northeast, Dongguan, a major industrial center with more than 10,000 companies created with the investment of foreign capital, which is the fifth largest contributor to China’s GDP. Shenzhen is also home to one of the world’s largest container ports, Yantian, and any disruption could again affect a strained global supply chain.

Similarly, a possible increase in transport costs is anticipated, given the existing imbalance between capacity and demand in the Asian country.
On the other hand, in places such as Yantian and Chiwan, in Shenzhen, their usual activity is maintained, although there are beginning to be increases in the waiting times of ships for berths.

Meanwhile, the plants of the automotive industry in the Changchun area are beginning to notice a lack of personnel due to the isolation measures decreed to contain the outbreaks, with the consequent delay in production.

In general terms, Maersk sees a moderate impact of the health situation in China on the supply chains that leave the country.
The supply chain must prepare for another upheaval in the coming months, which will impede the flow of container movement as importers around the world prepare for the upcoming peak season later this year.

There are many inconveniences and difficulties that some Asian countries are going through. From our team, we will inform you of all the news of this situation.