China’s supply chain situation at 9th March

Our latest Coronvarius update considers the current situation in China in respect of container shortages, sea freight, air freight and the status of six critical supply chain factors across the country.

China’s ports and airports are open, factories are slowly returning to capacity and domestic transport is ramping up, but little air cargo is on the move yet.

DOWNLOAD The Coronavirus supply chain update

Screenshot 2020-03-06 at 13.29.52

Download report

Exports will struggle, because of cancelled flights, until mid-April in some cases and limited charter flights or Chinese freighters operating.

For import and export traffic we expect heavy demand and high rates for capacity as we get back to normal.

For ocean shipments, the main issue remains securing equipment, since so many containers normally carried out of China are still there.

Ocean freight prices from Rotterdam to Shanghai have risen 24% in the past week, which is 45% higher compared to same period last year, as lines prioritise the repositioning of empty containers in preparation for outbound demand from China.

The shipping lines are coming up with new surcharges, like ‘emergency container pickup’ and peak season charges, which means if you’re not willing to pay then there’s no equipment.

We’re investigating alternatives such as sea-air, with feeder vessels options via Dubai, Singapore, Taiwan, Japan and Korea and using airports from there.

Rail is not really an effective option and the lack of trucks to get the freight to the terminal, make it even less viable.