On Monday, Shanghai launched a two-stage lockdown of its 26 million residents in a campaign against the Covid-19 virus and rising omicron cases. The lockdown is being implemented in two phases to limit disruption, starting with the Pudong financial district and nearby areas on the east side of the Huangpu River from Monday to Friday. The second phase will apply to the Puxi downtown area in the western part of the city on the other side of the Huangpu River and will run from Friday morning to Tuesday, April 5.
The lockdown will test the government’s ability to enforce its strict “zero-Covid” strategy and comes after its previous more localized temporary lockdowns failed to curb the spread of infection. While in lockdown, residents are confined to their homes, non-essential businesses are closed, and public transportation is suspended as mass virus testing is conducted.
Some factories are implementing “closed-loop” systems that allow them to remain open as long as workers are confined to the factory campuses and follow Covid-19 testing protocols. Employees at some companies have even moved into their workplaces and are sleeping in their office buildings to stay at work.
At this time, the Pudong airport remains open, Shanghai port operations are running, and vessels are able to call normally. However, there are disruptions to truck movement, as many trucks are turned away from surrounding provinces. This leaves a significant amount of cargo ready for loading unable to be transported to the port.
FCL truckers are still operating within the Shanghai city limits, but LTL truckers cannot enter Pudong. As LCL cargo and consolidation services will sustain a substantial impact, delays in upcoming sailings are expected. Some logistics companies are shifting to the nearby Ningbo port or even the Qingdao port to prevent supply chain issues around Shanghai.