[EN-LOG] Shanghai Expo, May Day, Strict Security Sparks Cargo Chaos

SHANGHAI airports and ocean terminals have become congested and cargo subject to serious delays as well as facing exorbitant trucking costs in the run up to the weekend's opening of Expo 2010.

"Haulage rates are up 40 per cent. Traffic jams around Shanghai are very serious and this is affecting air and ocean," said GAC China managing director Claus Schensema. "It's really hard to find a trucker to take a container."

Jimmy Ho, managing director of Hong Kong's CGL Eastern Network, told International Freighting Weekly (IFW) that customs clearances and declarations were being carried out "very strictly" with being delayed a day longer than usual.

"Outsize cargo is not allowed to be shipped from Shanghai," Mr Ho said. "Dangerous cargo is permitted, but has to go through complicated procedures, so people might be better avoiding Shanghai."

GAC's Mr Schensema said Shanghai customs authorities had warned that restrictions would be in place on certain hazardous or project cargo through the ports in Shanghai in the lead-up to the opening of the Expo.

"GAC has informed clients about these restrictions and advised them to use Ningbo and Qingdao to get to Shanghai or to export cargo from this area," he said.

Delays are likely to worsen as customs is understaffed for the time around the May Day holiday, forwarders said.

Paul Tsui, newly elected chairman of the Hong Kong Association of Freight Forwarding and Logistics, said the customs clampdown had come just as moving cargo in and out of Shanghai was at its busiest."

Acerbating the situation was combination of uncleared freight backlogs caused by the week-long shut down of European airspace because of Icelandic volcanic ash, usual May Day holiday congestion, and the unique experience of Expo, the international exposition.

Source : HKSG, 01.05.10.