Just last week Logistics Insider reported that as China struggles again with a sharp increase in COVID cases, supply chains emerging from and ending in China are facing another turbulent period. However, in recent update, world’s biggest port – the Shanghai Port – is making all efforts to keep things stable.
The port is keeping overseas vessels in a closed-loop zone to avoid massive delays, according to an oil-shipping broker. In addition, the port authority has installed backup teams and emergency plans. Even though staffing is lower than regular, for the most part Chinese ports are continuing to operate, according to industry workers and port officials.
Dimerco Express, the surge in cases has begun impacting supply chains that rely on China, and that may escalate in the approach to the Chinese New Year next month. A factor working in favour of supply chain operations in China is the absence of complete lockdowns under the eastern dragon’s COVID-zero policy. This has helped in avoiding shut down of factories and trucking, which could have lead to container pileup on the docks and creating shipping backlog.
That’s easing the pressure on exporters and ports, making for less work and allowing them more leeway to deal with infected staff. When China decided to reopen, it wasn’t affected by the declining productivity, according to one exporter. However, some factories have increased production since mid-December in expectation of more export cargoes for the Chinese New Year, Dimerco said.