One of China’s largest logistics companies, SEKO Logistics, has warned that, as the outbreak of Omicron across China worsens, local authorities are enforcing lockdown restrictions that have affected its offices, warehouses, and operations, while staff of major carriers are now working from home.
SEKO Logistics warned in a statement that the city of Shenzhen would be locked down for the week of 14-20 March. “All SEKO agent warehouses in Shenzhen and Dongguan are not operational due to this lockdown. Airport terminals are still operational and flight cancellations may arise. 5M has already announced cancellations on March 17,” said SEKO.
The firm said there would potentially be an impact on air freight shipments due to trucking restrictions if cargo had to be picked up from outside Shenzhen or a locked down area. “Air export operations are still being processed but with a slight delay due to staff working from home.
No trucks are allowed into and out of Shenzhen. This means that only local cargo located in Shenzhen can be booked o SZX departing flights.
Trucking services are still operating but with limited drivers due to 24-hour COVID test report policy. SEKO staff are working from home,” SEKO said. Most factories were also closed, and the few that are open have to be checked case by case.
Cross-border trucks from Shenzhen to Hong Kong have stopped operating, except for essential goods to Hong Kong, and truck drivers must have a negative test result within 24 hours. However, cross border operations of B2C and B2B can still operate out of Nansha and Huangpu ports. SEKO said the port of Yantian was still operating and loading cargo, despite an earlier report that it was closed.
“Currently there is no direct impact to ocean terminals and carrier operations but potential impact on ocean freight due to trucking restrictions if picking up from outside Shenzhen or a locked-down area. Most carriers like CMA, ONE, HMM, and MASTON have started working from home, which may cause potential delays on communication, emails and operations. There are trucking restrictions for vehicles traveling in and out of Shenzhen which means no cargo from outside the restricted area can enter,” SEKO said. CFS warehouses are closed.
In Shanghai the firm said its staff were all working in rotating teams and operating normally.
However, 48-hour COVID test reports were necessary for drivers to deliver cargo to agent warehouses.
“All agent warehouses are operating normally, though some staff are working from home. Some are arranging disinfection of trucks and cargo in warehouses prior to unloading cargo,” SEKO said.
All Chinese airlines’ inbound passenger flights will change routings to land in other city airports. No clear information has yet been provided for non-local carriers.
“There may be delays for inbound shipments after flights land in other cities. This is due to customs clearance/bonded transfer from other airports to PVG due to transportation control,” the firm said.
Nanjing airport has requested disinfection of any cargo delivered there from Shanghai with an additional cost (CNY200 for 3 pcs, after which CNY20/pc) and 48-hour COVID test reports must be provided for any truck moving in/out of Shanghai. However, there was currently no direct impact on ocean terminals and carrier operations, although most major firms had started working from home, which could cause operational and communication delays.
“Trucking restrictions for trucks in Shanghai have caused some shipments to be moved out of Ningbo. The situation in Greater China is very fluid and we will be increasing our communication as it develops,” SEKO added.
