New Shanghai COVID-19 Restrictions Will Severely Impact Domestic Trucking Services and Transpacific Ocean Freight Activities

New Shanghai COVID-19 related restrictions have resulted in severe truck shortages, causing further stress on Transpacific ocean freight.   

Given the extraordinary circumstances leading up to the Chinese Lunar New Year, where capacity and equipment constraints have been met by increasing port congestion and the cancellation of many vessel services – there is now a severe shortage of local drayage capacity in Shanghai Metro area.  

Temporary pre-Lunar New Year measures due to the recent COVID-19 outbreak recently imposed by the local authorities in Shanghai have limited trucking activities to such an extent that factories are cancelling or pushing back orders past the New Year as they struggle to move the freight from their factories to container ports.  

With the growing number of vessels still anchored outside Southern California ports and the tens of thousands of containers not being returned in a timely fashion to origin ports, carriers continue to cancel numerous voyages planned for the next several weeks and throughout the Lunar Holiday break. All major ocean carrier alliances are being affected. Until schedule integrity and container supply stabilize, it is expected that the reduction of capacity on many weekly services will continue throughout Q1 2021.  

Delmar is being proactive with ocean carrier partners, working hand in hand with drayage companies and terminal operators – securing any available container capacity to minimize disruptions for our customers.   

We urge all our valued clients to communicate early and regularly with your local Delmar representatives, planning and prioritizing orders and shipments so that all activities are best managed until capacity and vessel scheduling improves.  

It is now anticipated that these new developments will continue to cause prolonged disruption and unprecedented high-rate levels through Q1 2021.  

For further information, please contact your local Delmar Representative. 

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