May 23, 2022

​Shanghai, China Lockdown Update

On March 27, 2022, Shanghai announced a two-phase COVID lockdown for the Pudong financial district including areas east and west of the Huangpu River. These lockdowns have not been lifted, however there is signs of gradual easing of the lockdown restrictions. The latest announcement from Shanghai government officials provides some clarification on the full resumption of work, production, and life activities in all the currently affected areas.

New reported cases in Shanghai continue to decline. For the fifth day in a row, under 800 new cases have been reported.

As a result, the Shanghai government announced a partial resumption of cross-district public transport from May 22, starting with the reopening of four subways and some bus routes.

In addition, a plan to fully resume life and work, starting with low-risk areas will begin June 1. This will be a gradual lifting of restrictions by district, with a complete opening to be achieved by mid to late June.

Deputy mayor Zhang Wei stated, “economic activity had been recovering with businesses able to operate with workers living on-site and that authorities would allow more to resume normal operations from the beginning of June.” The on-site work restrictions will remain for the rest of May.

Given the extended lockdown in Shanghai, Drewry estimates that up to 260,000 TEU of export cargo was not shipped in April because of the lockdown. This backlog will take time to clear and given the potential for a demanding peak season, the Shanghai recovery is likely to support a strong peak season while creating new ocean carrier capacity shortages. It will also put additional pressure on U.S. ports that are already facing the strain of congestion.

OOCL Logistics is closely monitoring the supply chain impact and will maintain close communications with our customers that this may affect directly.

OOCL Logistics will keep you informed of any additional important developments. For more information, please contact your International Supply Chain Specialist or Sales Representative.

Thank you for your continued support of OOCL Logistics.