China Covid Crisis Continues

Thursday 28/04/22

Mass testing is now underway in Beijing, the latest mega city to face to tough wrath of the country’s zero-Covid policy.

Port and hinterland snarl-ups across the world’s most populous nation are wreaking havoc for manufacturers and logisticians alike.

While Shanghai has been grabbing the most headlines for its near-month-long lockdown, similar municipal closures are widespread across the People’s Republic. Data from research company Gavekal Dragonomics shows that as of April 20 57 out of China’s top ...

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Cargo Diversions from Shanghai Start to Clog-up Other Major Chinese Airports

Thursday 21/04/22

Airfreight diverted from lockdown-hit Shanghai Pudong (PVG) is clogging up China’s other major airports, causing a shortage of pallets for exports.Forwarders have singled out Zhengzhou Airport (CGO), in the central Henan province, as the hardest-hit, given the large amount of cargo diverted there from Shanghai.

Adding to the difficulties, Zhengzhou was itself began a two-week lockdown over the weekend that including the economic zone, with restrictions on travel and vehicle permits.

“It’s not a real lockdown, but more ...

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Harsh Reality of Shanghai’s Lockdown and the Supply Chain

Wednesday 20/04/22

Since March 27, authorities in Shanghai began a snap lockdown of the city’s roughly 26 million residents after a mass testing revealed “large scale” Covid-19 infections.

Since then, stories of desperate citizens struggling to find food have spawned rare protests in the city—and viral videos of residents screaming from their high-rise apartments to share their frustration. But despite the outrage, President Xi Jinping said last week that China’s zero-COVID policy “cannot be relaxed.”

That’s bad news for supply chains that are already feeling the stress of ...

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Shanghai shutdown – Factories Expected to Suspend Manufacturing

Tuesday 29/03/22

China’s biggest city Shanghai began a two-stage lockdown Monday as authorities attempt different strategies to maintain growth, while trying to control the country’s worst Covid-19 outbreak since the pandemic began.

The city of 25 million people will first lock down areas east of the Huangpu River, which includes its financial district and industrial parks, for four days starting on Monday. Then the lockdown will shift to the city’s west for another four days, according to a statement released ...

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Omicron Outbreak in Australia Wreaking Havoc with Supply Chains

Australia’s Omicron wave has skyrocketed staff shortages in container logistics, putting the sector under “enormous strain”.

This week, local media reported bare supermarket shelves across the country, due to “up to half” of all truck drivers being absent from work, thanks to either a positive test result or isolation rules.

Industry sources say the country’s testing rules, combined with a lack of test kits for transport workers, is at the root of the disruption to supply chains.

According to Michael Kaine, national secretary ...

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Airport Congestion and Staff Shortages Means Cargo is not Getting Picked Up

Attempts by air cargo handlers to encourage forwarders to pick up freight at weekends are failing, according to two senior handling sources.

While the congestion at several airports, notably Amsterdam and Chicago O’Hare, has eased, handlers claim one of the biggest issues is lack of freight movements between Friday and Monday.

“We are experiencing cargo not being picked up by forwarders – that’s a sweeping statement, but in general, dwell times are increasing,” said Robert Fordree, head of cargo for Menzies. “Forwarders are ...

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Is The Supply Chain Broken?

Peter Cole, owner of Australian ecommerce company Urban Plant Growers is still waiting for his shipment two months after it was due to arrive in Sydney.  Cole’s $1.6 million order of hydroponic kits and lights, packed into two 40-foot shipping containers aboard a ship that set sail from Shenzhen, China, is still floating somewhere in the Pacific Ocean.

It never used to be this way. Before the pandemic, Cole’s kit was manufactured, shipped, and ready to sell to his customers in ...

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Congestion Hits Air Cargo Flows – ‘Not seen this bad in 25 years’

Severe congestion across major airports appears to be hindering air cargo volumes.

Dynamic week-on-week global load factors fell 1.5% the week starting the 8th of November, according to the latest research from Clive Data Services.

The same week saw a 5.5% fall in global capacity, which should indicate higher load factors – but it seems demand fell.

While forwarders are reporting strong demand for air freight as the peak season takes off, the data suggests congestion on the ground is curbing volumes.

“There is ...

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Shipowners Make Payoffs to Free Vessels held by Indonesian Navy Near Singapore

This article is originally from Reuters.com

More than a dozen shipowners have made payments of about $300,000 apiece to release vessels detained by the Indonesian navy, which said they were anchored illegally in Indonesian waters near Singapore, according to sources with direct knowledge of the matter.

The dozen sources include shipowners, crew and maritime security sources all involved in the detentions and payments, which they say were either made in cash to naval officers or via bank transfer ...

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Australian Competition and Consumer Commission (ACCC) Releases Container Stevedoring Monitoring Report 2020-21- Revealing that Supply Chain Disruptions are leaving Australian Businesses Vulnerable

The disruption to the container supply chains has left Australian businesses vulnerable, according to the Australian Competition and Consumer Commission (ACCC). The ACCC released its annual container stevedore monitoring report which looks at the impact of the current global logistics crisis on Australia’s container trade, as well as the prices, costs, and profits of stevedores at Australia’s international container ports. This report showed that delayed shipments and rapidly rising freight rates were putting “intense pressure” on importers and exporters.

The commission ...

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