China's determination to pursue the "zero Covid" strategy is posing an obstacle to the recovery of the shipping industry.

In an effort to stamp out the infection, China maintains a ban on crew substitutions for foreign crews when ships docked in China. Recently, China also introduced a mandatory 7-week quarantine for Chinese sailors returning home. Even the Chinese crews who had been replaced elsewhere had to wait two weeks before being allowed to disembark.

To comply with these regulations, shipowners and ship managers have had to divert vessels, delay deliveries and change crews, further intensifying the global supply chain crisis. "China's restrictions are having a pervasive effect," said Guy Platten, secretary-general of the International Shipping Council (ICS), an organization representing ship owners and ship operators worldwide demand, said in an interview with Bloomberg. “Any restriction on vessel operations affects the supply chain and leads to real disruption.”

To date, the shipping industry has generally absorbed the increased costs, thanks to container freight rates that are among the highest in history due to strong demand, limited capacity, and congestion at ports. port. For the weekend ending Nov. 18, the freight rate for a 40-foot container was $9,146, a six-fold increase from the five-year average through 2019. Tanker and dry bulk carrier freight rates also increased similarly.

The shipping lines also acknowledge that they respond to China's restrictions by shifting the burden on the crews working on the ships. Chinese authorities do not allow more than three Chinese sailors to board the same flight to the mainland, so the journey home for Chinese sailors can last for months after they have completed their duties. service and got off the ship,” said Mr. Hojgaard.

Chinese officials recently continued to defend the country's anti-Covid strategy and signaled that it would not ease regulations anytime soon. Meanwhile, the supply chain disruption in the shipping industry shows no sign of abating. According to a survey conducted by Oxford Economics of 148 businesses between October 18-29, nearly 80% said they expect the supply chain crisis to worsen.

"China is determined to eliminate Covid and will not ease restrictions anytime soon," said Mr. Zhang of Singhai Marine

"China may even tighten the rules before hosting the Winter Olympics in February next year."

Related News

Exported goods will grow strongly in the first 5 months of 2024

As of May, total import-export turnover of goods reached 66.62 billion USD, up 9.1% over the previous month and up 22.6% over the same period last year.

Solutions to Promote Rice and Vegetable Exports at the End of 2024

On May 28, at the Ministry of Industry and Trade, Minister Nguyễn Hồng Diên and Minister of Agriculture and Rural Development Lê Minh Hoan co-chaired a meeting to discuss solutions to promote the production and export of rice and vegetables at the end of 2024. Representatives from the Ministry of Home Affairs, various associations, and related units attended the meeting.

Develop dry ports, optimize import and export transportation

The Prime Minister has just approved the master plan on development of the inland port system for the period of 2021 - 2030, with a vision to 2050

Related News

Happy International Children's Day on June 1st with Glotrans 01/06/2024

On the occasion of International Children's Day on June 1st, Glotrans sends the best wishes to all the children nationwide!

Glotrans made a good impression at South Central - Central Highlands Business Event 2024

Glotrans successfully participated and made a good impression at the South Central - Central Highlands Trade Promotion and Business Connection Program 2024, which took place from May 23 to May 24, 2024, at Quinter Central Hotel (Nha Trang City).