{"id":5383,"date":"2022-04-07T00:00:00","date_gmt":"2022-04-07T00:00:00","guid":{"rendered":"http:\/\/bpddev2.uk\/clients2023\/metro\/shanghai-supply-chain-update-lockdown-extended-indefinitely\/"},"modified":"2024-02-02T08:58:17","modified_gmt":"2024-02-02T08:58:17","slug":"shanghai-supply-chain-update-lockdown-extended-indefinitely","status":"publish","type":"post","link":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/shanghai-supply-chain-update-lockdown-extended-indefinitely\/","title":{"rendered":"Shanghai supply chain update\u2013\u00a0Lockdown extended indefinitely"},"content":{"rendered":"\n

The lifting of COVID restrictions in parts of Shanghai this week has been postponed\u00a0after\u00a0nearly 20,000\u00a0new cases were\u00a0reported\u00a0on Monday.<\/strong><\/p>\n\n\n\n

While the primary port terminals and airport remain open, most workers are in locked-down neighbourhoods and the impact on production and inland logistics is severely limiting supply chain operations.<\/p>\n\n\n\n

With limited goods available to despatch, demand for\u00a0air cargo\u00a0capacity out of Shanghai is decreasing quickly, with carriers cancelling flights.\u00a0Despite the drop in demand, reduction in ground handling capability and capacity has seen air freight rate indexes to North Europe increase by 43% since the start of the recent outbreaks.\u00a0Shanghai Airport is effectively closed for cargo receipt and despatch and is being redirected\u00a0to Zhengzhou Xinzheng International airport nearly 1000 kilometres away.<\/p>\n\n\n\n

The world\u2019s largest sea container port remains\u00a0open\u00a024 hours a day and even though it is operating within a\u00a0\u201cclosed-loop\u201d bubble, which requires workers to stay on-site, increasing numbers are quarantined. While the closure of many warehouses, the drop in manufacturing and serious disruptions to trucking have significantly reduced the availability of goods and the port\u2019s throughput, which reportedly has resulted in queues of in excess of 300 vessels, as of today, awaiting berth outside the port.<\/p>\n\n\n\n

A flash survey on the impact of COVID on business in Shanghai found:<\/strong><\/p>\n\n\n\n

99% of respondents had been impacted by the recent outbreak<\/p>\n\n\n\n

86% of manufacturers reported that their supply chains had been disrupted<\/p>\n\n\n\n

82% of manufacturers reported slowed or reduced production<\/p>\n\n\n\n

54% of respondents have decreased 2022 revenue projections <\/p>\n\n\n\n

The soaring number of cases in Shanghai has restricted driver testing capacity and with many drivers from neighbouring provinces reluctant to enter Shanghai, because of the risk of having to quarantine on their return, haulage capacity has been slashed.<\/p>\n\n\n\n

The deteriorating COVID situation has raised concerns over worsening port congestion elsewhere in China, with Yantian and Shekou experiencing longer waiting times.<\/p>\n\n\n\n

According to Bloomberg, there are 174 vessels anchored or loading across South China \u2013 the most since the region was affected by typhoons in October – representing 14% of the total fleet.<\/p>\n\n\n\n

What was expected to be a relatively short situation is now becoming a much bigger concern to production by manufacturers, logistics infrastructure and ultimately the global economy with even greater challenges in what was an already challenging environment. This is creating issues both at a local level and on a much wider scale as detailed in this recent news article published by the BBC which is worth reading – China lockdowns<\/a> <\/p>\n\n\n\n

With over 80% of manufacturers reporting disrupted supply chains and reduced production, factories may not meet planned delivery schedules. This is why we recommend checking with your vendors, to clarify the\u00a0status of your orders.<\/strong><\/p>\n\n\n\n

Metro\u2019s cloud-based supply chain management platform, MVT, simplifies the most demanding global trading regimes, by making every milestone and participant in the supply chain transparent and controllable.<\/strong><\/p>\n\n\n\n

With end-to-end visibility across the extended supply network and global control down to individual SKU level, it is simple to adapt to external developments. Changing supply lines, managing existing or adding new vendors, monitoring product flows and outbound order data, from any location.<\/strong><\/p>\n\n\n\n

To discuss how our technology could support your supply chain, please contact Simon George our Technical Solutions Director or Elliot Carlile.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The lifting of COVID restrictions in parts of Shanghai this week has been postponed\u00a0after\u00a0nearly 20,000\u00a0new cases were\u00a0reported\u00a0on Monday. While the primary port terminals and airport remain open, most workers are in locked-down neighbourhoods and the impact on production and inland logistics is severely limiting supply chain operations. With limited goods available to despatch, demand for\u00a0air […]<\/p>\n","protected":false},"author":3,"featured_media":4692,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68,63,56,65,60],"tags":[],"class_list":["post-5383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-china","category-coronavirus","category-sea","category-supply-chain"],"acf":[],"yoast_head":"\nShanghai supply chain update\u2013\u00a0Lockdown extended indefinitely - Metro<\/title>\n<meta name=\"description\" content=\"Shanghai supply chain update. 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