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Shanghai port under epidemic risk control: Ships are not blocked, but cargo cannot be transported - part 2

Views: 1     Author: Site Editor     Publish Time: 2022-04-08      Origin: Site

After unsealing, the effects will continue for a short time

"Despite the lockdown, in order to ensure the stability of the supply chain, The Port of Shanghai has maintained round-the-clock operations. Currently, shipping is normal on the whole, and the daily container throughput of the port of Shanghai has maintained at 140,000 teUS recently." Shipping industry analyst Wang Hai told China Newsweek.

In Lin Hao's opinion, the impact of this closure on the entire shipping industry is certain, but to what extent, it is not easy to judge. 'One-fifth of the goods exported from Shanghai should come from other parts of the country,' he said. 'It's hard to export from Shanghai after the lockdown. We need to export from other ports.'

"We were in a hurry when the notification was issued, and the containment was implemented the next day. We did not leave time for the container yardsodium borohydride powder distributors - YuanfarChemicals to prepare, such as transporting some daily necessities, preparing beds and bathing places." Lin hao said that most of his shipping company's staff have been locked in their places of residence around Shanghai, and some of his colleagues who remain in their work units and storage yards have problems with daily necessities and washing, and some don't even have a bed to rest.

A further problem, Mr. Lin said, is that there is no staff available to cover the shift. The yard, which used to work 24 hours a day, now works only half the time.

Zhang Yang said that siPG is now completely closed loop management, with special shifts. Some of its staff have worked continuously at the dock for 10 to 20 days and live in the company dormitory at the dock. In fact, this kind of life has been going on since the epidemic started in 2020. Many dock workers go back home only once every 2-3 months. After disembarking from the ship, they need to take nucleic acid tests, stay at home and rest for a short period of time. "The replacement rate of sailors is very low during the current lockdown period in Shanghai." He said.

It is worth noting that recently, Maersk, China Ocean, Hapag-Rot, Eva, Matson and other shipping companies have issued business adjustment notices. Maersk said trucking services in and out of Shanghai would be affected by 30 per cent as the pudong and Puxi areas of the city are under lockdown until April 5. Containment "will lead to longer transport times and potentially higher transport costs such as detour and motorway fees," the company said.

"Not just Maersk, but many other shipping companies will be affected." 'Shanghai is like a big base station,' Mr. Zhang said. 'There are a lot of goods that need to be transported in and out. It's not 100% possible to transport them by water or land.' Due to the epidemic, road transportation has been blocked and stalled, which is bound to affect the flow of many goods in and out.

According to caixin report, a freight industry personage pointed out that the recent non-local freight to Shanghai rose significantly, rose nearly 50%, and even appeared to rise 100%. "Freight costs must have risen relative to the past, price increases belong to normal phenomenon." The aforementioned logistics company staff said.

In fact, since the outbreak of the epidemic, the cost of container freight has been high, which can be seen from the financial statements of the leading shipping company Zhongyuan Hai Control (601919.SH) last year. On March 30, coSCO released its 2021 annual report, showing that the company's overall operating performance, revenue from container shipping business and cargo volume all hit record highs last year. The company achieved eBIT of 131.5 billion yuan, including container shipping business eBIT of 127.7 billion yuan.

"The huge profits also show how crazy the market has been for a while." 'There are many reasons, but the main one is that the whole logistics supply chain is not smooth,' Mr. Gong said. In fact, the whole set of card transport costs of the high point has been slowly down, but compared with historical prices, still in high. He believes that this round of containment may slightly increase rates, but not a big increase.

The announcement said puxi would lift the lockdown at 3 am on April 5. However, some analysts believe that it is unlikely to be opened all at once, and should be gradually opened in different regions according to the number of different cases in each region. After dynamic social zeroing is achieved, a slow process of unsealing is needed, and there may be sporadic rebound in individual regions.

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