Is a Second Logistics Crisis from China Coming... COVID-19 Spread in Guangzhou and Ningbo

Omicron Cases Confirmed in Guangzhou and Tianjin
Even with 10,000 Yuan Quarantine Payment, Truck Drivers Still Unavailable, Causing Concern

[Asia Economy Beijing=Special Correspondent Jo Young-shin] In Guangdong Province, known as the manufacturing hub of China, an Omicron infection case has been confirmed, raising concerns about a potential manufacturing disruption originating from China. Additionally, in Zhejiang Province, known as a logistics hub, the number of COVID-19 cases has been increasing daily, putting China's manufacturing and logistics networks on high alert. In August, the partial closure of Ningbo Port in Zhejiang Province due to COVID-19 caused a global logistics crisis.

[Image source=Reuters Yonhap News]

According to the National Health Commission of China on the 15th, a 67-year-old man residing in Guangzhou tested positive for Omicron. This man, who arrived from overseas on the 27th of last month, underwent a two-week centralized quarantine period in Shanghai before returning to his home in Guangzhou. He tested negative for nucleic acid during the centralized quarantine period. Subsequently, he was confirmed positive for Omicron during a one-week home quarantine in Guangzhou.

The issue is that this man traveled from Shanghai to Guangzhou by air. Huanqiu Shibao reported that the confirmed case used China International Airlines (CA) flight 1837 from Shanghai to Guangzhou, raising concerns about the infection risk to fellow passengers on the flight. Due to this, Guangzhou health authorities locked down three related areas and conducted nucleic acid testing, according to Huanqiu Shibao.

Besides the Omicron case, COVID-19 infections have been confirmed daily in Dongguan, Guangdong Province, putting the entire province on high alert. Dongguan is an industrial and transportation hub bordering Shenzhen and Hong Kong. Chinese health authorities are controlling highways connected to Dongguan and conducting nucleic acid testing for residents in the area.

Zhejiang Province, home to Ningbo Port, China's second-largest port, is also suffering from a resurgence of COVID-19. From the 5th to the 13th, a total of 212 confirmed cases were reported in Zhejiang. Notably, on the 13th, 38 people were infected in a cluster at the Shaoxing fish wholesale market, with 102 confirmed cases in just two days across Zhejiang Province.

Huanqiu Shibao reported that factories in the Zhenhai area of Ningbo City, Zhejiang Province, have halted production since the 8th, and the transportation system has also stopped. Additionally, highways have been closed.

Huanqiu Shibao pointed out that truck drivers are reluctant to enter the area due to quarantine and other issues, causing logistics to come to a halt in the region. There is no means to transport export goods to Ningbo Port.

Some companies, pressed for shipping deadlines, have even offered truck drivers 10,000 yuan (approximately 1.8 million KRW) if they enter a two-week quarantine, but it is reportedly difficult to find drivers.

Representatives of companies in the area unanimously stated that quarantine and lockdown measures should be implemented within the scope that allows the logistics system to operate normally.

Earlier, the State Council's COVID-19 Response Special Committee instructed that since most cluster infections are related to overseas arrivals and imports, port cities should strengthen epidemic prevention and control, surveillance and warning systems, and implement border control measures.

Chinese health authorities partially closed Ningbo Port in August after a worker was infected with the Delta variant. As the world's third busiest port was partially closed, maritime transportation costs soared, causing a global logistics crisis. Chinese media are concerned that if the COVID-19 spread in Zhejiang Province is not contained, a second logistics crisis may occur.

Meanwhile, an Omicron case was confirmed yesterday in Tianjin near the Chinese capital Beijing, suggesting that Beijing's epidemic prevention procedures will become even more stringent.

This content was produced with the assistance of AI translation services.