Corona Cluster in Ningbo, China! Restrictions on Trucks, Drays. Concerns about the Impact on the Supply Chain.

Hello, it’s IINO.

I would like to broadcast IINO san’s Logistics Radio.

Today, I would like to talk about the theme, “Logistics functions decline at China’s Ningbo port.”

Daily Logistics Radio by IINO san in 6th Jan. 2022

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Corona Cluster in Ningbo

A series of new coronavirus cases have been confirmed in Ningbo.

According to shipping company officials, port operations such as mainline cargo handling are normally worked, but vehicle restrictions for trucks and drays are still in place.

Zero COVID Policy in China

Quarantine has been tightened after an outbreak of corona clusters at a sewing factory in Ningbo City last weekend.

Therefore, truck drivers are required to apply for a traffic permit office, and in some cases, even if they have it, they may be asked to quarantine.

China’s “Zero COVID” policy is now very strict. For example, an outbreak of about 1,300 infected people in Xi’an has been locked down.

The Chinese government has a strict national policy of never spreading corona.

Impact on Future Logistics

In August 2021, Ningbo’s Meishan Terminal was closed, and although the impact was limited at that time, some omit occurred.

This time also, some shipping companies have decided to omit this port, and logistics companies are considering the use of alternative ports.

When there is a shortage of truck drivers, it becomes impossible to load and unload containers, and the work takes a long time.

Therefore, the turnover rate of containers will be reduced, leading to a shortage of containers.

Right now, freight rates on Asian routes are rising, and the Chinese New Year is coming up next month. If some of the world’s second largest ports are closed, it may affect the increase in freight rates within Asia.

I think we need to keep an eye on the corona situation in Ningbo and will continue to keep you informed.