A new wave of COVID-19 that has been affecting China for weeks has caused the government to quarantine millions of inhabitants between March and April, which

impacts logistics activities at the international level, according to Michele Lira, operations manager for cargo-partner Mexico.

The specialist told T21 that there is an alert for possible delays in the manufacture of raw materials and components, as well as changes in their delivery and shipping dates; in addition to congestion in ports, changes in cargo roles and increase in transit times of shipping services.

Other effects that are added are the delay in payments and credit applications at origin, the shortage of labor in terminals with carriers and factories, and the increase in transportation costs at origin that may also be reflected in maritime freight. as well as congestion in destination ports.

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Streamlining communication, clearly sharing the situation with customers and suppliers to find the best option according to needs, are key in planning.

The outbreak affects Hong Kong and now also Shenzhen, home to major technology startups, will further increase congestion at the port by reducing operations at terminals and carriers for the coming weeks.

The quarantine in Shenzhen ends on March 20 and in Hong Kong it extends to April 24, so the Shenzhen government monitors the border and implements stricter policies for transportation, which is expected to limit the ability of goods to cross and generate an even stronger impact on the maritime from Southeast Asia to this port.

These more restrictive measures will lead to greater complications on the part of land services, together with the difficulty of complying with the negative test rule because carriers have to wait to enter or leave the port of Shanghai for more than the 48 hours indicated. politics, said Michele Lira.

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It will be necessary to consider the impact of the closure of warehouses or container yards and that in some provinces the factories need permission to continue operating. each province dictates its infection prevention policies and for the movement of cargo, for example, carriers from Shenzhen or Dongguan are not allowed to enter nearby places.

Much of the population has returned to work at home, they will only be able to go out for essential activities, so we expect delays in operations and response times from our colleagues at origin, shipping companies, airlines and suppliers.

The specialist recommended reviewing the "safety stock" and developing a closer relationship with alternative suppliers in other countries so as not to stop receiving cargo; in addition to looking for alternate options in conjunction with the logistics provider to avoid further damage.

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Original note