China Lockdowns as Covid Cases Spike

16-March-2022

Dear Valued Customers and Partners,

Once again, the supply chain is being impacted by a spike of Covid-19 cases making waves throughout China. Below is an excerpt from the notification we have received from a trusted China agent.

Lockdowns across China are spooking global supply chains again. The 17.5m population of Shenzhen, a vital export centre in the south of the country, has been placed into a week-long lockdown, as has the province of Jilin in the north, Qingdao in the east, while Shanghai has placed some new measures on its citizens. Truck drivers entering are now required to hold negative Covid-19 test results within 24 hours and get tested again upon arrival at the port. The expected rebound in some economies is being hindered by missed calls at some ports. In Asia and Australasia, Port Klang, Melbourne and Tauranga also lost some 40% of capacity as lines either cancelled services or skipped ports due to vessels being full. The southern China air freight market has changed “dramatically” as Covid rages in Hong Kong, severely impacting the local trucking market to and from the mainland. Forwarders estimate there is a 70% cut in truck capacity, further diminishing Hong Kong’s air export market. A lot of south China traffic traditionally routed via HKG now flies directly ex-Guangzhou or Shenzhen or other Chinese airports. Believe this situation will go for another one or two months, until the ‘confirmed cases’ are under control.

As always, SILA Global & our partners will do everything within our control to minimise the negative ripple effects this will inevitably cause to the global supply chain. We will endeavour to keep our clients informed as new information comes to light.

In the meantime, should you have any concerns, please do not hesitate to reach out to your SILA Sales representative.

Thank you,

SILA Global Pty Ltd