Weekly Logistics News Headlines: Challenges in China
The Port of Ningbo’s Meidong Terminal has shut down following the detection of a positive coronavirus case among staff. The closure reduces operations at the world’s third-busiest port by about 20 percent. Carriers are now skipping and rerouting vessels away from Ningbo in order to avoid developing delays and backlogs. An estimated 40 vessels have been waiting outside the port.
China’s recent coronavirus outbreaks have prompted restrictions and lockdowns that are limiting air freight operations. Airport shutdowns, limited staffing, and other side effects are forcing carriers to cancel flights. The cancellations are worsening a capacity and congestion problem just as the nation’s traditional export peak season approaches.
The U.S. Senate has approved a bipartisan infrastructure bill that would supply $1 trillion in funding for roads, bridges, and other projects. The proposed law would add an additional $550 billion on top of previously planned infrastructure improvements. Meanwhile, Democrats are still pushing for a broader infrastructure plan worth $3.5 trillion.
The United States Postal Service has proposed peak season surcharges for the 2021 holiday season. This is the second consecutive year that the USPS has proposed surcharges to help handle increased package volumes amid the pandemic. USPS has proposed a start date of October 3 and an end date of December 26. The proposal has yet to gain approval from the Postal Regulatory Commission.