Shanghai air cargo and wider supply chain disruption continues

Airfreight and wider supply chain disruption is set to continue in Shanghai as the city remains under lockdown.

Shanghai started a two-phase lockdown on March 28. Restrictions were due to end on April 5, but the city’s government has extended the lockdown, now covering the whole city.

Dimerco’s air- ocean freight market forecast for April 4-17, looking specifically at Asia-Intra Asia, found congestion is rising at Shanghai Pudong International Airport (PVG) with a backlog of cargo, rising rates and pressure on road transport.

The logistics company said: “resources of road transportation are still critical in Shanghai as well as in Jiangsu Province. It causes the delay on pick up in some areas and the price is at highest level”.

It said space was tight across air hubs in Greater China too, while backlogs are also evident in Korea and Singapore.

Rates to the US and Europe are also rising, it added.

PVG, a hub for China Cargo Airlines, China Southern Cargo, DHL Aviation, FedEx Express, UPS Airlines and Suparna Airlines has been effectively closed since the lockdown began, although on April 5 Flight Radar 24 showed scheduled arrivals and departures, indicating the airport is operating at a reduced capacity.

One Chinese company has deployed robots to offer contactless delivery in a bid to tackle the lockdown logistics issues. At the end of March, JD Logistics launched its autonomous robot delivery service in Pudong to provide contactless last mile delivery for certain locked down neighbourhoods.

The robot can load up to 100 kg of goods and drive 80 kilograms per charge. With AI technology and multiple sensors, the robot can recognise, avoid obstacles, and plan its route to the destination.

Air Cargo News reported on March 30 that global logistics firms were anticipating disruption, delays and price increases for air cargo supply chains in Shanghai.

Rebecca Jeffrey www.aircargonews.net