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Shanghai lockdown: Disruption grows to logistics, shipyards and production

Photo: SIPG View of SIPG container terminal
Disruption is growing to shipping and logistics, shipyards, and production as Shanghai’s lockdown continues.

While the world’s largest container port remains operational it is becoming increasingly congested, as trucking is severely constrained and warehouses closed since late March.

Maersk stopped accepting bookings for reefer and dangerous goods into Shanghai on 14 April due to a lack of yard space.

Ocean Network Express (ONE) said in a customer advisory: “Trucking remains limited and the terminals are still congested, whilst reefer yard plug capacity remains highly stressed. Hence, there is a possibility that reefer containers cannot be discharged in Shanghai until the situation eases.”

Meanwhile two major subsidiaries of Bestway Marine & Energy Technology have suspended production due to the recent Shanghai covid-pandemic outbreak.

Jiangsu Dajin Heavy Industry and Shanghai Bestway Marine & Offshore Design & Engineering Company have shut down production. Under the pandemic control on staff and vehicle transportation in Shanghai and neighbouring areas, the two subsidiaries had decided to suspend operation which is likely to delay the production and delivery schedule of the two.

Additionally, insufficient logistics supply caused by Shanghai pandemic control measures also made the other units, Taizhou Shipbuilding Heavy Industry and Taizhou Marine Equipment in poor and limited production.

“To reduce the influences brought by temporary production suspension and limitation, Bestway will try to maintain close communication with clients and ensure the delivery of orders when the production resumed,” said Bestway.

Japan’s Consul General to Shanghai, Shuichi Akamatsu, posted a letter written to the Shanghai’s Vice Mayor on the consulate's website urging the Shanghai authorities to address concerns over business disruptions.

He acknowledged city’s efforts to curb the virus. "However, with the extension of virus control measures, the situation of production and operations not being able to function normally has already lasted for more than a month," he said. "The impact on business activities is clearly becoming more severe by the day."

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