An update on the impact on transportation
The situation is gradually improving with lately positive announcements. Shanghai has been rated now as medium and low risk area which allows people to travel domestically with no obstacles. As of July 29, restaurants and commercial places will re-open.
Further the government has announced that Shanghai has lowered the quarantine restrictions from 14 plus 7 days to 7 plus 3 days. This makes coming back to China easier for private and business matters. An increase in flights is yet still pending.
From a supply chain point of view there are still minor restrictions in regards of trucking from neighboring provinces to Shanghai. There is still a registration process applicable and truck entry into Shanghai must be approved by the local government. It is however already much better than a month ago and further improvements are expected.
The rebound effect is slower than anticipated. Reasons are lack of labor, lack of raw-material due to increased pricing or delayed arrival and a lower demand. Carriers are still managing the situation with blank sailings. Some trade’s vessels are well utilized, so early bookings and forecast are mandatory.
Please bear in mind the situation is dynamic and can constantly change. Our staff is monitoring the situation closely. Please contact your local Gebrüder Weiss representative for any questions
