Market Letters

Client Advisory – Shanghai Lockdown 03.28.22

China announced on Sunday, that Shanghai would enter a staggered two-part lockdown beginning March 28th, 2022. The lockdown will be implemented in two stages defined by geography, splitting Shanghai into two regions, with the Huangpu River as a natural dividing line.

  • Pudong – From 5:00am, March 28th to 5:00am, April 1st, 2022
  • Puxi – From 3:00am, April 1st to 3am, April 5th, 2022

Local Shanghai city government announced that it would suspend public transport, including ride-hailing services, in locked down areas. It also ordered the suspension of work at firms and factories, except for those offering public services or supplying food. Shanghai's Public Security Bureau said traffic controls would be implemented on highways into and out of the city, and people leaving would have to show proof of negative results from nucleic acid tests taken within the previous 48 hours.

Air Freight

  • Currently, PVG airport, airline terminals and customs operations are reporting as normal. However, some flights into/out of PVG may be cancelled.
  • Airport warehouses are expected to operate with reduced efficiency due to staffing impact from quarantine requirement.
  • Due to current restrictions, expect challenges with local airport truck pick-up/delivery.

Ocean Freight

  • Authorities are reporting that Shanghai port operations remain normal. However, we have received notification that up to 30% of container yards have been closed.
  • Most port warehouses have been closed and truck traffic in and out of the terminals is limited to full container drayage with significant restrictions on if not suspension of LTL cargo truckers.
  • Cancelations of scheduled carrier service is in the range of 30-40% and expected to approach 50% through April 5th.

We will keep you updated on any changes to the current situation as it develops. In the meantime, please continue to check out our INSIGHTS and NEWS pages for the latest information.

Should you need further information or have any concerns or queries, please contact your Laufer sales or customer service representative.