Supply chain pressures start to ease as Shanghai COVID-19 cases fall

Aerial view container ship loading and unloading.

A.P. Moller – Maersk (Maersk) has announced warehouse operations have partially resumed in Shanghai as COVID-19 cases start to fall.

In a recent customer advisory, the Danish giant noted that dangerous cargo yard density is gradually being relieved in the Port of Shanghai.

Offices and some depots in the area remain closed until further notice.

As a result of the impact of the lockdown, Maersk has started offering its customers relief packages, including:

  • Free Change of Destination on import cargo into Shanghai port, that has ETA from April 1 to April 30
  • Free Combined Detention and Demurrage on cancelled export shipments from Shanghai, with ETD March 28 to April 30
  • Interim stop of the Combined Detention and Demurrage clock for the period March 28 to April 30, applicable for the location of Shanghai on both imports and exports

The Municipal Health Commission recently announced 1,931 confirmed locally transmitted COVID-19 cases and 15,698 local asymptomatic carriers in Shanghai on 21 April.

This shows considerable progress from the 2,494 confirmed locally transmitted cases and 16,407 local asymptomatic carriers on 19 April.

China initially shut down on 28 March, however, the Port of Shanghai has remained open throughout.

While restrictions were only meant to last 10 days, it has since been extended until further notice.

Ocean Network Express (ONE) recently announced the possibility of delays across the supply chain due to the extension.

CMA CGM and MSC are amongst other companies reporting major disruption in trucking movements velocity and available trucking capacities.

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