Supply chains in Southern China are bracing for significant disruptions as multiple shipping companies announce service suspensions or restrictions around the Lunar New Year period. These measures are expected to substantially impact import and export trade flows through the region.
Shipping Policy Adjustments
Several major carriers have recently announced operational changes for the holiday period. Ocean Network Express (ONE) became the first to declare partial service suspensions due to quarantine requirements for coastal feeder vessel crews operating between Southern China and Hong Kong waters. The restrictions are expected to last from late December 2022 through mid-February 2023.
ONE will suspend acceptance of all out-of-gauge cargo (OOG), dangerous goods, and refrigerated containers destined for Southern China and Fujian ports that rely on coastal feeder services, affecting shipments arriving at major ports between December 25, 2022 and February 6, 2023. Dry cargo services will operate at approximately 50% of normal capacity during this period, with reduced booking availability.
Mediterranean Shipping Company (MSC) issued similar adjustments on December 21, announcing capacity reductions and voyage cancellations for its Transpacific services during the holiday season, affecting both US West Coast and East Coast routes.
Other carriers including Hapag-Lloyd and CMA CGM Group have published comparable notices regarding cargo acceptance limitations for Southern Chinese ports during the holiday window.
Root Causes of Service Disruptions
The coordinated operational adjustments stem from three primary factors:
- Ongoing pandemic controls: Quarantine requirements for feeder vessel crews continue to constrain regional transport capacity.
- Seasonal demand fluctuations: Factory closures and worker holidays during Lunar New Year traditionally reduce shipping volumes.
- Port congestion risks: Reduced staffing at terminals during holidays may create operational bottlenecks.
Supply Chain Implications
The shipping restrictions are expected to create several challenges for regional supply chains:
- Extended delays for specialized cargo including oversized shipments, hazardous materials, and refrigerated goods
- Potential freight rate increases due to reduced capacity
- Possible supply chain interruptions for businesses dependent on Southern Chinese ports
Recommended Mitigation Strategies
Businesses affected by these shipping constraints should consider implementing the following measures:
- Advance planning to schedule shipments outside affected periods
- Exploring alternative transport options including rail or air freight
- Maintaining close communication with carriers and logistics providers
- Adjusting inventory strategies to account for potential delays
The current shipping policy changes reflect a convergence of seasonal and operational factors. Companies with exposure to Southern Chinese supply chains should assess their vulnerability to these disruptions and implement appropriate contingency plans.