Lockdown in Shenzhen Poses a Threat to a Struggling Global Supply Chain

Global shipping
lockdown-in-shenzhen-poses-a-threat-to-a-struggling-global-supply-chain

The Ladingo Team 

While the Ukraine-Russia war continues to rage and disrupt global supply chains, the Chinese government announced a week-long lockdown in Shenzhen, Guangdong, China in response to the Omicron outbreak. The new lockdown threatens to worsen the ongoing disruptions in the global supply chain, which is already struggling with driving costs up, delivery delays, and shortages. Here’s all you need to know about how the current lockdown might threaten your business’ ability to ship goods from China.

The city of Shenzhen is a manufacturing powerhouse, home to the world’s second-busiest port, and known as “China’s Silicon Valley”. Currently, it has been announced that the shutdown will continue until the 20th of March. However, many believe that due to Omicrons’ high infection rate and China’s zero covid policy, the shutdown may even be extended for a month. This will cause another jolt to the global supply chain.

How might Shenzhen’s lockdown threaten global supply chains?

Plants shutdown 

Shenzhen is one of China’s leading manufacturing regions as well as one of the largest manufacturing bases in the world. Therefore, many businesses, E-commerce sellers, and Amazon sellers depend on Shenzhen for sourcing and running their business. As for now, all production and business activities are suspended except those providing necessary public services such as water, electricity, gas, and food. Plants shut down will cause shortages and delays in supply. If the lockdown is extended, in that case, the best option is to source from other provinces that are not under lockdown at this time.

Freight forwarding 

As of right now, all ports in China, including those in Shenzhen, are operating and loading cargo as normal, striving to keep the supply chain running despite the local lockdown. Ports continue to function, which is good for global supply chains, but they rely on trucks and warehouses, which are closed.  That means that their shutdown will affect the port’s ability to function normally.

Container Rates

Furthermore, the lockdown in many other parts of China causes an increase in the number of container ships waiting near China’s ports, such as Qingdao, Shanghai, Ningbo. Around 70 vessels have been spotted off Qingdao. With the new omicron outbreak in China, it is highly likely that container rates will rise.

In some ways, it seems like the supply chain might be less affected this time than in previous lockdowns. Meanwhile, it is said that this is the worst outbreak China has seen in two years, which means that there is still a chance for ports to shut down. The only thing we can do now is to watch where things are heading in China. In the meantime, click here to learn more about how to strengthen your supply chain during disruption.

 

Share on Facebook
Share on Twitter
Share on Linkedin
Shop online

亚马逊卖家如何做好准备,备战旺季?

亚马逊卖家如何做好准备,备战旺季? 2022年 7月 27日  旺季还有很长时间,但如果卖家不做任何准备,等到旺季真正到来时就会手忙脚乱,无法达成旺季的最高销售额。对亚马逊卖家来说,旺季是一年中赚钱的最佳时期,也是压力最大的时期,提前做好准备可以让利润最大化。 卖家该在旺季前做好哪些准备,以便在今年增加销售额并扩大客户?无论是黑色星期五、网购星期一,亦或是圣诞节,完成以下步骤,卖家都能够提前做好准备! 准备好产品 旺季临近,到了卖家为销售高峰准备产品的时候。 首先,卖家要通过添加更多购物者可能搜索的高频关键字,准备产品描述和列表。例如,在标题中包括节日、圣诞节或礼物等词,以便寻找礼物的购物者可以在搜索区域找到您的产品,您还可以在列表中添加更多以假日为主题的图片。 最后,确保您的列表中包含尽可能多的详细信息,给客户留下问题可能会导致他们选择其他店铺购买产品。

Read More »
集装箱在港口

美国上演“世纪大堵塞”,何时降温?

美国上演“世纪大堵塞”,何时降温? (文/雨果跨境吴白珏)2022年 7月 19日  屋漏偏逢连夜雨,船迟又遇打头风。 今年7月是美国港口有史以来第四个最繁忙的月份,港口拥堵情况持续。 “货主们都不来取货,在此之前从未见过港口堆场被塞得如此满满当当,我们的压力也从未如此大。”佐治亚州萨凡纳港口负责人格里夫·林奇略显无奈的说道[1]。 佐治亚州萨凡纳港口位于美国东部海岸线上,是北美最大的集装箱码头,同时也是美国东海岸第二繁忙的港口。据悉,目前有64%的船只聚集在美东和墨西哥湾沿岸的港口,数以万计的集装箱堆叠在一起,像五颜六色的儿童积木一样堆得高高的,一眼望不到头。而格里夫·林奇作为港口负责人,每天一睁眼,就得开始为这些堆积如山的集装箱忙得焦头烂额。 据乔治亚港务局报告显示,萨凡纳港口5月份总共运输近52万个20英寸标准的集装箱,打破了2021年10月创下的50.43万个的集装箱数量纪录。与去年同期相比,5月份的吞吐量增长了8.5%,创历史单月新高[2]。据报道,美国东海岸(USEC)和墨西哥湾港口等待集装箱船,船舶排队远远超过美国西海岸(USWC)。 拥堵的萨凡纳港只是全美“供应链大混乱”的一个缩影。当下美国地区各港口拥堵情况如“龙卷风”,呈现上升趋势。

Read More »