SEKO Logistics is expecting capacity issues and rates to increase amid the most recent lockdown impacting Shanghai. 

In a March 28 advisory, the logistics company also noted expectations for rising trucking costs ⁠— although noting that air freight and ocean terminals will operate as normal during the March 28 to April 5 lockdown in China's financial hub of 26 million people.

"A sharp increase in air freight rates from today.  We have already received some sky-high offers for enquires to Europe so far today," SEKO said on March 28. "Capacity issues due to shortage of PVG solution in coming 1 or 2 weeks."

"Trucking cost is foreseen to increase sharply," it added.

SEKO noted, however, that "formal notifications from PACTL / EAL are that airfreight terminals are operating normally, and a temporary pass will be available for freight forwarders to transfer cargo from agent warehouses to airline terminal for export operations."

In terms of ocean freight, SEKO said "it has been confirmed that the ocean terminals will operate as normal during the lockdown."

"Deliveries and container loading have been affected for factories out of Shanghai due to COVID control policies for different provinces, as well as the new lockdown being implemented.  All of the factories in Zhejiang province are already moving cargo out of Ningbo, rather than Shanghai," it added, also emphasizing that currently all highways have been closed ⁠— impacting trucking.

"Some trucks have been blocked from delivering into Pudong. There may be an impact/delay to air freight deliveries to the airport," SEKO said. 

Meanwhile, the American logistics company added that in terms of warehousing, most agent and trucking warehouses are open for operations, although some with a "skeleton staff."

"Any trucking and express company cannot pick up and deliver goods in the locked-down area," it said.

The Civil Aviation Administration of China (CAAC) earlier said a plan to divert international arrivals at Shanghai Pudong to 13 other cities in China is in place as the country pursues its zero-Covid policy.

Although freighter services were not included, the move further adds a strain to the already pressured air freight market as capacity in shipping continues to be scarce.

China began its two-phase coronavirus lockdown from March 28 through April 5 as Shanghai conduct mass testing to control a growing outbreak as part of the country's "zero-Covid" policy.

Earlier in March, China also put Shenzhen — a major port city — in a week-long lockdown to halt a growing Covid-19 outbreak.