The recent weeklong lockdown in Shenzhen, a major export hub, fueled concerns about further strained global supply chains. Those worries were unfounded, as industry insiders and experts told Shenzhen Daily.
Facing severe pandemic flare-ups, the city put most residents into “slow living” from March 14 to 20 to contain the spread of the virus. Although the anti-pandemic measures inevitably affected goods flows, the government and companies have beefed up efforts to minimize disruption to freight shipments.
Yantian Port, the world’s fourth-busiest container port, kept operating with essential managerial personnel and port workers working and living in a pandemic bubble at the port during the lockdown.
Kerry Apex, one of the largest Asia-U.S. ocean freight consolidators, said its operations at the port were barely affected.
“We loaded trucks at factories and unloaded goods for shipping at the port. The whole process was smooth without obstacles caused by the pandemic control measures,” said the company’s Shenzhen manager, surnamed Zhuo.
The South China branch of Cosco Shipping Lines, China’s largest container shipping company, said they had never “pushed the pause button throughout the recent epidemic flare-ups.”
With an intelligent customer services platform, the shipping giant shifted its customer services, customer relations, and shipping services online.
It is estimated that around 93% of logistics firms in Shenzhen have adopted digitalization and automation technologies in daily operations.
All the shipping agents interviewed said that the impact of this round of outbreak on their businesses was fairly limited and controllable, yet they encountered inland transportation disruptions due to a shortage of truck drivers and the closure of Shenzhen warehouses.
“A lot of truck drivers were quarantined in their housing estates, while most warehouses, except those in ports, were sealed off. Even if the goods can be transported into Shenzhen, they have no place to get stored,” said Zhang Xuedong, the owner of Shenzhen-based Awice Logistics Co.
Shenzhen Logistics and Supply Chain Management Association told Shenzhen Daily, “We are talking with key logistics companies to know their difficulties, and are going to meet with the city government to discuss solutions.”
To mitigate the pressures upon logistics companies, municipal and district governments have issued a slew of relief measures targeting the logistics and supply chain industries.
Wang Wenbo, a supply chain expert at China Development Institute, said, “Financial subsidies and rent reductions for logistics companies, airlines and ports can directly boost the sector.”