BULLETIN : CHINA COVID-19 SPIKE : SHENZHEN 7 DAY LOCKDOWN AND PARTIAL SHANGHAI LOCKDOWN.

In response to a Covid-19 infection spike, 2 of China’s largest cities, have had a new round of restrictions placed upon them. The Chinese government has maintained a strict “zero-Covid policy” using lockdowns throughout the pandemic.

The 7-day lockdown of Shenzhen and the partial lockdown of Shanghai will in most probable cases exacerbate current supply chain and inflation issues.

In particular, Shenzhen’s halting of manufacturing and commercial activities will impact negatively on supply chain markets. A coronavirus outbreak in Shenzhen in spring 2021 delayed port operations and caused a surge in global shipping rates that contributed to price increases for imported goods in countries globally. The current disturbance to vessel schedules will only further impact negatively on the global schedules and ongoing vessel schedule uncertainty.

Please note we are not aware of any particular shipment delays at this point, but with factory closures in Shenzhen we are expecting this to be the case in the near future, and we also expect you may receive warning of delayed PO ex-door in this region in coming days.

Any shipment delays will be closely monitored by our team and relayed to you directly from your account manager. Should you have any queries relating to shipments please communicate with your account manager directly.