Shipping and logistics companies continued to site the massive impact on the supply chain of the extended lockdown in Shanghai which began on March 28.
In its update on April 8, CMA CGM said restrictions on the movements of people in the major shipping and air cargo hub have prompted delays in the transport of goods — and it is implementing rerouting to avoid further delays.
"In consequence of the pandemic control management measures undertaken by the local authorities in Shanghai, we observe massive impact on both trucking movements velocity and available trucking capacities," CMA CGM said in its latest Shanghai reefer advisory.
"These factors have a major impact on import cargo that suffer drastically slower pick up time and therefore excessively stretched dwell time which results in high stress on yard plug capacities," it added.
To prevent a potential situation whereby last-minute reefer shipment is denied for discharge due to limited plug capacities, CMA CGM said it is highly recommended that cargo owners anticipate potential issues and identify re-rerouting options.
"As we try our best to safeguard your cargo, please note that in the event your reefer import shipment fails to discharge upon its arrival in Shanghai, we may divert the cargo to alternative transshipment port/s for interim storage before shipping back to Shanghai when the situation allows," the container shipping said.
It added that CMA CGM will waive the change of destination (COD) administration fee for those customers who decide to COD inbound reefers from Shanghai to other alternative ports.
More than 90% of truck capacity is reportedly not in operation due to the lockdown as trucks are prevented from moving in and out of the city without a special permit, which is only valid for 24 hours and only on specific routes.
"Even with this arranged, booked trucks can be commandeered by the government to transport aid supplies," Seko Logistics said in a separate update to its clients.
Most warehouses in Shanghai are also closed, while some maintain skeleton operations like airport cargo terminal operator PACTL.
Mediterranean Shipping Co. (MSC) said it will also begin offloading refrigerated containers at other ports because there are no available power plugs to connect to in Shanghai.
It noted that unless customers request a specific change in destination within seven days, reefers will be discharged at intermediate or alternate ports chosen by the shipping line.
"If the situation does not improve soon it may be necessary to abandon the voyage and advise you from where your container may be collected," MSC said.
Rerouting of reefers to skip Shanghai
Ocean Network Express (ONE) said separately that the port and terrminal operations "remain operational" — however, the shipping line said, "trucking availability is very limited, and this has impeded clearance of import cargoes."
"The resulting impact is that Yangshan and Wai Gao Qiao PH2, in particular, are encountered with critically high Dangerous Goods and Reefer yards utilisations. Due to operational constraints in the yard side, there is a possibility that certain DG Classes and Reefers may not be allowed to discharge if the quantity cannot be accommodated," it added.
ONE said in that case, it will arrange either COD change-of-destination to discharge at other ports or keep your cargo at other transshipment ports, and transport to Shanghai once the situation allows.
"Please be informed that Shanghai area has imposed several restrictions and measures against Covid-19 spread and some of them are extended till further notice. ONE is carefully monitoring the situation of Shanghai Port and Terminal from these measures and restrictions," it said in an update.
"Situation is changing dynamically; we continue monitoring closely to bring you the latest information."
On Saturday, Shanghai recorded 23,624 new Covid-19 cases as mass Covid-19 testings continue.
