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charset=utf-8 Content-Transfer-Encoding: 8bit SHANGHAI PREPARING FOR REOPENING, IN PHASES Date: 18 May 2022 Dear Valued Customer As Covid cases continue to decline to most recently, below 1,000 cases a day, the authorities are preparing for a gradual reopening of the city. Starting this week, citizens in some districts are allowed to travel between compounds again, while public transportation will likely resume during the coming week. Schools, restaurants and public areas remain closed for now and will open up in phases. The government targets a “return to normal” by the 23rd of June 2022. From a business perspective, nearly two-thirds of key foreign trade enterprises have, or will, receive approval to resume operations over the coming days. DSV and many of our vendors will be part of this reopening phase, but it remains to be seen as to when and how a gradual opening under strict safety regulations, will become practically possible. For now, however, the lockdown continues to have a significant impact on supply chains and market volumes in Shanghai, on selected trade lanes, are still 30% - 40% below average levels. Ocean freight * Trucking and CFS services for imports and exports remain inefficient and the throughput of cargo is very slow. * Since the implementation of the ‘silent period’ which started on the 9th of May, only a few container yards have resumed near the WGQ port (Shanghai Waigaoqiao Free Trade Zone), with equipment collections and returns, and container unloading/storage, concentrated in the Luchao Gang/ Yangshan area. * In addition to severe congestion in these alternative container yards, there will be a slight equipment shortage in the following days and equipment evacuation to the YTZ barge port will be affected. Air freight * Shanghai Pudong International Airport handled more than 500 cargo flights during the Labor Day holiday, a month-on-month increase of 20 percent. * CK (China Cargo Airlines) has cancelled several Passenger Conversions Charters for this week, which might have some impact on the available capacity in the market. * The situation at PVG airport is now slowly improving due to a gradual easing of restrictions. We also see a decline in import cargoes being backlogged. * The situation at CGO is improving and the lockdown of export warehouses there, have ended. It is imperative that you work closely with your Account Manager and our Operational teams to pre-plan and forecast shipments in order for us to ensure we book and manage our allocations accordingly and should you require more information, please do not hesitate your local DSV office. Yours sincerely, DSV Air & Sea Management DSV – Global Transport and Logistics With offices and facilities in more than 80 countries on six continents, we provide and run supply chain solutions for thousands of companies on a daily basis. Our reach is global yet our presence is local and close to our customers. Read more at www.za.dsv.com ( https://dsv.evlink2.net/servlet/link/29027/155073/2747983/1497396 ) --2022051811111808:12:18 Content-Type: text/html; charset=utf-8 Content-Transfer-Encoding: 8bit

 
SHANGHAI PREPARING FOR REOPENING, IN PHASES

Date: 18 May 2022

Dear Valued Customer

As Covid cases continue to decline to most recently, below 1,000 cases a day, the authorities are preparing for a gradual reopening of the city.

Starting this week, citizens in some districts are allowed to travel between compounds again, while public transportation will likely resume during the coming week. Schools, restaurants and public areas remain closed for now and will open up in phases. The government targets a “return to normal” by the 23rd of June 2022. 

From a business perspective, nearly two-thirds of key foreign trade enterprises have, or will, receive approval to resume operations over the coming days. DSV and many of our vendors will be part of this reopening phase, but it remains to be seen as to when and how a gradual opening under strict safety regulations, will become practically possible. 

For now, however, the lockdown continues to have a significant impact on supply chains and market volumes in Shanghai, on selected trade lanes, are still 30% - 40% below average levels. 

Ocean freight 
  • Trucking and CFS services for imports and exports remain inefficient and the throughput of cargo is very slow.
  • Since the implementation of the ‘silent period’ which started on the 9th of May, only a few container yards have resumed near the WGQ port (Shanghai Waigaoqiao Free Trade Zone), with equipment collections and returns, and container unloading/storage, concentrated in the Luchao Gang/ Yangshan area. 
  • In addition to severe congestion in these alternative container yards, there will be a slight equipment shortage in the following days and equipment evacuation to the YTZ barge port will be affected. 

Air freight 
  • Shanghai Pudong International Airport handled more than 500 cargo flights during the Labor Day holiday, a month-on-month increase of 20 percent.
  • CK (China Cargo Airlines) has cancelled several Passenger Conversions Charters for this week, which might have some impact on the available capacity in the market.
  • The situation at PVG airport is now slowly improving due to a gradual easing of restrictions. We also see a decline in import cargoes being backlogged. 
  • The situation at CGO is improving and the lockdown of export warehouses there, have ended.

It is imperative that you work closely with your Account Manager and our Operational teams to pre-plan and forecast shipments in order for us to ensure we book and manage our allocations accordingly and should you require more information, please do not hesitate your local DSV office.

Yours sincerely,

DSV Air & Sea Management
 
DSV – Global Transport and Logistics
 
With offices and facilities in more than 80 countries on six continents, we provide and run supply chain solutions for thousands of companies on a daily basis. Our reach is global yet our presence is local and close to our customers.
 
Read more at www.za.dsv.com


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