Dear Valued Customer,
COVID-19 outbreaks in Qingdao City, Shandong Province, and Henan Province have resulted in corresponding shutdowns. These recent shutdowns have resulted in the following:
- Factories in the regions are locked down and inactive
- Outbound freight from those factories is halted
- Bookings meant for those outbound goods have been cancelled
While we do not anticipate a significant effect from this specific situation, shippers need to remember that China’s Zero COVID policy is still active and sudden disruptions will continue to unexpectedly occur as long as that policy remains in place.
Therefore, it is possible that these current shutdowns or later shutdowns could result in longer than average ocean freight delays, which could compound the current situation on U.S. railways. Additionally, since a labor agreement has not been reached, it is also possible that the ILWU leverages these shutdowns or future shutdowns, which could result in severe backlogs and/or a shortage of carrier space and equipment.
As a result, we are advising all clients to be prepared. Therefore, in order to ensure the fluidity of your supply chain, we strongly urge you to reach out to your dedicated logistics advisor to review and, if necessary, adjust your supply chain to address both short-and-long-term needs.
Please contact your dedicated customer service representative if you have any questions.