China COVID lockdown

Cathay Pacific predicts weak peak for cargo as China output slumps

Front end of a large Cathay Pacific Cargo jet in front of the cargo terminal.

Cathay Pacific has fully rebuilt its freighter schedule in time for the peak shipping season, but executives signaled Thursday that demand will be softer this year because of inflation and ongoing supply chain disruptions. 

The prediction came as an unprecedented heat wave and another round of COVID lockdowns in a major city further constrained production at Chinese factories.

The busy period for air shipments traditionally runs from late September until early December as stores bring in orders...

https://www.freightwaves.com/news/cathay-pacific-predicts-weak-peak-for-cargo-as-china-output-slumps

How slow ships are speeding up Hong Kong’s air cargo

Tail end of a Cathay Pacific jet with green tail, with a Cathay 747 cargo jet in the background.

Cathay Pacific’s move to restore a large amount of cargo capacity this quarter as Hong Kong lowers strict COVID restrictions is welcome news for businesses coping with high rates and tight transport supply in the Asian market. It also reflects the ingenuity of the airline and its home airport that kept cargo operations functioning in the midst of debilitating quarantine measures.

The most counterintuitive change in business practices was harnessing maritime shipping — the slowest form of freight...

https://www.freightwaves.com/news/how-slow-ships-are-speeding-up-hong-kongs-air-cargo

Viewpoint: Shanghai’s reopening pledge nothing more than the boy who cried wolf

COVID workers in Shanghai.

Another week — and another pledge that the lockdown in Shanghai may be lifted. It’s not the first time this has been announced. 

And it won’t be the last.

The city’s vice mayor, Wu Qing, said at a news conference Thursday that there would be an “orderly opening, limited [population] flow and differentiated management.” Yet, no date has been set.

How many times do these false alarms have to be stated? “Actions speak louder than words” applies to this situation. The government’s actions are not...

https://www.freightwaves.com/false-hope-for-shanghais-reopening-after-covid-lockdown

Viewpoint: China COVID policies to squeeze flow of European exports to North America

Containers in Shanghai.

China’s zero-COVID measures are producing another problem in trade. Logistics providers in Europe told American Shipper they are concerned about an impending empty-container-supply crisis. A bitter combination of blank sailings and an increase in delays of Europe-bound shipments from China have created a cocktail of capacity constriction.

“You need imports to have containers for exports,” said Alexander Geisler, managing director, German Shipbrokers’ Association (ZVDS). “The whole system only...

https://www.freightwaves.com/news/viewpoint-china-covid-policies-to-squeeze-flow-of-european-exports-to-north-america

Shanghai tries to ease supply chain crunch amid lockdown

An automotive assembly line in China with workers in blue suits handling machinery.

Chinese officials on Monday issued new guidelines to normalize industrial production and logistics flows, part of an effort to minimize the impact of strict lockdown measures in Shanghai. Under rules endorsed by the central government, localities will self-select specific companies in critical industries that can restart operations.

A statement from the Ministry of Industry and Information Technology (MIIT) was one of the first times the government has acknowledged the three-week lockdown of...

https://www.freightwaves.com/news/shanghai-tries-to-ease-supply-chain-crunch-amid-lockdown

Chinese lockdowns will create shocks to American supply chains (but China is the biggest loser)

Shanghai's zero-COVID lockdown continues.

What happens in China doesn’t stay in China. And for American supply chains, that is usually a good thing. American businesses have become dependent on low-cost goods coming from Chinese suppliers. But in a post-COVID world that may be entering the Second Cold War, reliance on China means that American businesses are held hostage by an autocratic regime that seems oblivious to the damage it is doing to its own economy, much less the global one. 

Since the earliest days of COVID-19, China has...

https://www.freightwaves.com/news/chinese-lockdowns-will-create-shocks-to-american-supply-chains-but-china-is-the-biggest-loser

Get ready for the next supply chain shockwave

Container stacks at the Port of Shanghai. A COVID lockdown is creating huge logistical challenges in the city.

Concern is growing that the spread of COVID cases and city lockdowns in China will have massive downstream effects for global supply chains that could dwarf previous disruptions since the start of the pandemic.

Last May, the huge Yantian container terminal at the Port of Shenzhen throttled down to 30% of normal productivity for a month to stamp out a handful of positive cases there. Hundreds of thousands of shipments that couldn’t enter the port accumulated in factories and warehouses, and many...

https://www.freightwaves.com/news/get-ready-for-the-next-supply-chain-shockwave

Delta Air Lines eyes cargo surge after Shanghai lockdown eases

A white, with blue tail, Delta jet comes in for landing with wheels down. Delta Air Lines' took a loss in the first quarter, but cargo revenue was strong and profits are expected soon.

Delta Air Lines’ cargo business benefited during the first quarter from supply chain disruptions that pushed shipments to the tight air market. The latest logistics gridlock in Shanghai, where authorities are enforcing a citywide COVID lockdown, could fuel even more growth, a top executive said.

Reduced industry capacity drove a significant increase in cargo yield, helping generate $289 million in cargo revenue during the period ended March 31 – up 51% from the 2019 benchmark, the company...

https://www.freightwaves.com/news/delta-air-lines-eyes-cargo-surge-after-shanghai-lockdown-eases

Viewpoint: ‘Shanghai Surprise’ — and a new lockdown to worry about

Truck at Shanghai's deep-water container terminal.

Just like the Sean Penn-Madonna flop, the newest “Shanghai Surprise” is also a bomb. 

China’s latest move announcing a phased-in exit of the lockdowns for the eastern part of Shanghai has logistics managers warning clients about the impact it will have on the truck deliveries of their products to both the airport and seaport. 

With the military moving in to test millions of civilians, the government of China is showing the world “zero COVID” is a policy it is not abandoning anytime soon.

On the...

https://www.freightwaves.com/news/viewpoint-shanghai-surprise-and-a-new-lockdown-to-worry-about

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