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Hong Kong COVID Outbreak Requires Creative Transport Alternatives

by | Mar 10, 2022 | News & Media

Happening Now

The serious outbreak of COVID in Hong Kong is causing severe freight disruptions for companies that ship cargo between Hong Kong and Mainland China. In Hong Kong’s neighboring city of Shenzhen, officials have instituted aggressive testing measures to prevent the spread of COVID to the mainland from cross-border truck drivers.

Shenzhen has 17 very active cross-border transfer stations for trucks that operate between the Hong Kong and Mainland China, bringing goods to and from inland warehouses through these stations. Because of the testing and quarantine measures now in place, the available truck driver force has shrunk to about 10% of normal capacity. A quick end to this challenge seems unlikely and there has even been talk about a total COVID lockdown of Hong Kong. Companies that depend on regular cargo movements between here and the Chinese Mainland would be wise to seek alternatives.

Dimerco Recommendation

Dimerco has been working with customers to seek alternatives that keep cargo flowing despite the lack of cross-border trucking capacity.

For companies needing to move goods in or out of Hong Kong from Mainland China, alternative transportation solutions include air freight or feeder boat service – LCL or FCL. Each customer situation is different, but creative transport options do exist to keep cargo moving during this very challenging period.

For companies that use Hong Kong as a distribution point into Mainland China, we have recommended they shift inventory to one of Dimerco’s bonded warehouse locations in China (Shanghai, Shenzhen or Beijing). This avoids delays that are plaguing Hong Kong ports and cross-border trucking operations. An added benefit is that there is no immediate VAT or import duty tax until a shipment has been formally imported and delivered to end customers in China.

To discuss your specific challenge, contact your Dimerco sales rep or reach out to start a discussion.