Heavy rain and thunderstorms in recent weeks have caused havoc across China, with floods along major rivers destroying bridges, blocking roads and railways and forcing thousands of residents to evacuate. As a result, waiting times in impacted ports, including Shanghai and Ningbo, have increased considerably.
Following the release of the summit dates the G20 control measures have also been announced for 2016. This year’s summit will be held in Hangzhou on the 4th and 5th of September. Hangzhou is within 2 hours drive of Ningbo and Shanghai ports. Based on previous experiences such as the 2014 APEC, 2010 Asian Games and 2008 Olympics, we expect similar control measures to be introduced which will have a significant impact on the export and import cargo flows, causing fluctuations before and during the event.
These controls will be implemented both by the National and Local Governments. We have been able to confirm the following, but we believe further restrictions are still to be announced and we also expect there will be a degree of “unannounced” restrictions that only become evident in the immediate lead up to the summit.
We strongly urge you to discuss these restrictions with your China suppliers to identify any impact it may have with the supply of product to your business during this time. Our suggestion is that wherever possible you take advantage of shipping early, well before any impact of restrictions, and definitely before the dates indicated below.
The following G20 control measures affecting production and traffic to meet air quality and security requirements have been announced:
Shanghai: 24th August – 6th September
- Jinshan Zone will shut-down all chemical and associated factories
- Chemical Zone and Fengxian Zone will identify factories that either need to control production or close-down
- Shanghai Port will have the available port power reduced by 30%, Jinshan Port will have the port power reduced by 50%
- All factories in the region will need to meet specific operating and pollution standards, those that do not meet the standards will be shut down
- High polluting motor vehicles from Shanghai will not be allowed to enter Hangzhou
- The main production and traffic restrictions will generally only be applied to the southern part of Shanghai, this will mitigate some of the effects of exports moving through Shanghai Port.
Ningbo Hangzhou Bay New Zone: 24th August – 6th September
Factories in Ningbo Hangzhou Bay New Zone will either be shut down, or forced to reduce productivity by 50%.
Shaoxing, Zhengjiang: 24th August – 6th September
- All dye factories will be closed in the two weeks prior to 6th
- Since March, the Shaoxing Government has been regulating all the high pollution printing factories, so far 64 factories have been shut down, and can only reopen once they meet the required pollution control standards.
Public holidays have also been declared from Thurs 1st–Wed 7th September in the below districts.
- Hangzhou Economic Zone
- West Lake Scenic Area
Sun 28th August, Sat 10th Sept and Sun 11th Sept will be working days.
Magellan Logistics is working closely with our Chinese Agents to ensure we have the timeliest information about how this year’s G20 control measures will impact on shipping from China. Please get in touch with me via firstname.lastname@example.org or your usual Magellan Customer Service Representative on 1300 651 888 or +64 9 974 4817 / 18 for New Zealand based enquiries.