Cross-border trucking operations between Shenzhen and Hong Kong have been reduced, according to an update from Dimerco, due to the increasing cases of Covid-19 in the Dongguan/Shenzhen area.
The global 3PL noted that from July 24 until further notice, truck movements between the two cities have been reduced to 1,500 from 3,500 putting pressure on the transport of goods to and from Shenzhen and Hong Kong.
Dimerco said this reduces capacity to just 10–20% of normal.
"The increasing Covid-19 cases in the Dongguan/Shenzhen area have led Shenzhen to reduce the daily target for Shenzhen-Hong Kong cross-border truck movements," it said.
"The move is expected to significantly stimulate demand for alternative cross-border solutions over water."
In addition, Dimerco said stricter testing policies have been enacted.
It said truck drivers must show proof of a negative test result within 24 hours, versus the previous 48 hours.
From July 24 to July 31, major brands (Huawei, ZTE, SMC, BYD, Foxconn, etc) must have all staff do a daily PCR test and restrict unnecessary physical contact.
Although no announcement has been made on the possibility of reinstating lockdowns, the cut on cross-border truck operations and additional testing measures are expected to put further pressure on supply chain movement between Hong Kong — a major cargo hub — and Shenzhen, the heart of electronics manufacturing in China and home to the world's fourth busiest container port.
The reduced capacity is also expected to drive longer lead times for any shipments needed to be trucked to Hong Kong.
Truck capacity between Hong Kong and mainland China has only recently been restored after earlier limitations due to Covid-19, prompting shippers to rely on the river barge network of the Pearl River Delta to pick up the slack, including turning to air freight to move goods.