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Wednesday, 4 March 2020

Coronavirus Update - China Returns to Work Slowly & Shipping Services Normalising

China is making slow but steady progress to return to work and fight back with their economy. Shipping services should start normalising soon as a consequence.

Industrial and manufacturing activities seem to be picking up with the eastern provinces mainly back to work. As some internal restrictions are still in force, most of the manufacturers are still not operating normally at this stage due to staff shortages. Despite this it is still good news for China's and the world's economy they are gradually ramping up again.

Here are some of the latest updates on the progress of what is actually happening in China, according to logistics sources I have there.
  • Most of the eastern provinces such as Zhejiang, JiangSu, Fujian, Guangdong, Shanghai, Shangdong are back to work. Henan province has announced 16 March as the return to work date
  • Most state owned manufacturers are at 80% productivity and logistics companies back to running around 95%
  • Zhejiang 99% of companies and manufacturers are back to work. However, the productivity is around 50% and forecast to pick up to about 80% by late March
  • Guangdong 99% companies and manufacturers are back to work. Productivity for many companies is around 50% and expected in increase to about 80% by late March. However the top 300 companies there are running at 91% productivity. The province is using high speed trains and charter flights to get workers back from inner Chinese provinces where there are still some restrictions.
  • The furniture industry in Guangdong province is now back to 80% productivity and the car parts industry in Shangdong province has been fully operational since mid February.
  • The textile industry in Zhejiang province is now back to 80% productivity since 29/02/2020. 
  • In Jiangsu province 78.7% companies and factories are back to work, worker numbers are at approx. 6.25 million which is 76% of the normal number.
  • The Chinese government is encouraging the use of trains to carry containers rather than rely on trucks between cities and provinces.
  • Most provinces have reduced their control restriction from level one to level two, this means other provinces’ workers, if fit and well, are able to travel into most of the provinces. 

Hong Kong, China, City, Urban, Skyline, Buildings

Please don't hesitate to contact my team at Depth Logistics or I if you need advice about your own shipping situation.
All for now,
Brad Skelton

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