Tired of the pandemic, the Chinese crew has begun returning home to prepare for the Lunar New Year break. This will exacerbate the shortage of port workers in China, thereby adding pressure to the global supply chain.
Currently, some major shipping lines in the world such as Ocean Network Express and Hapag-Lloyd have stopped accepting new orders to small ports in southern China, according to notices sent to corporate customers by consulting firms. .
To get goods from factories in China to global consumers, international businesses have to depend on a complex network of feeder ships operated by private operators.
Feeder ships are used to load containers onto and off large ships at major Chinese ports such as Hong Kong and Shanghai. Trucks and barges also assist in the transportation of goods.
The move of the shipping companies mentioned above is believed to originate from the shortage of transshipment ships, which is caused by a lack of labor supply, according to the agency. Bloomberg.
(Illustration: Bloomberg).
Normally, every year, shipping lines will suspend container transshipment services in the Pearl River Delta and Hong Kong area for about 6 weeks for workers to take a break for the Lunar New Year.
However, next year, it is estimated that the shutdown period will take place for at least two months due to the Chinese government’s application of prolonged isolation policies for the crew, Bloomberg quoted shipping experts said.
Crew members as well as port workers in China, tired of the isolation regulations, are starting to return to their hometowns to prepare for the Lunar New Year holiday. Therefore, shipping companies and land-based logistics units do not have enough workers to operate transshipment ships and freight trucks, so they have to stop accepting new orders.
In an email sent to a customer by Hapag-Lloyd, the Chinese crew’s return home journey will take longer because of the “14+7” isolation rule. That is, shipping industry workers must isolate at a hotel for at least 14 days after leaving the ship, then 7 days of self-isolation at home.
Serious consequences
The early New Year holiday for Chinese crews has boosted container freight rates from southern China to Southeast Asia by 30% from a week ago, and costs could escalate further, experts say. At the same time, congestion at US ports will also become more serious.
A series of new outbreaks across the country may force local governments to strengthen control policies for people going to and from seaport cities or provinces further inland, experts fear. hesitate.
Disruption at Chinese ports shows the impact that the country has had on the global supply chain, especially as the Beijing government continues to pursue its Zero COVID strategy.
From the closure of the ports of Yantian and Ningbo earlier this year to the fact that crew members take the Lunar New Year break earlier than usual, China’s anti-epidemic measures are exacerbating congestion at ports from Vancouver. (Canada) to Europe, experts emphasized.
Salmon Aidan Lee, senior strategist at Wood Mackenzie, said: “If local governments in eastern China tighten travel measures as the number of new COVID-19 cases increases, the situation will could get worse from here.”
This week, Ningbo city imposed a blockade order on Zhenhai district after detecting one case of COVID-19 infection and two asymptomatic positive cases. Petrochemical plants have had to reduce output and ban workers from leaving the area.
Although the blockade order in Zhenhai county has not affected transportation schedules in southern China, the situation could change if local authorities adjust isolation regulations or travel restrictions, spokesman Tim Seifert by Hapag-Lloyd said.
According to VietnamBiz.vn
