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  • The situation on the Russian-Chinese border 30.03.2022
The situation on the Russian-Chinese border 30.03.2022

The situation on the Russian-Chinese border 30.03.2022

  Useful information

Border checkpoints "Markovo", "Olochi" are closed.

According to the decision of the Chinese side, due to the epidemic of coronavirus infection, a carrier from Russia leaves a trailer for loading at the entrance to the territory of the People's Republic of China, returns to the territory of Russia, and on the second day re-enters the territory of the People's Republic of China, and takes the loaded trailer.

Checkpoint «Pogranichnyj». There is no queue in front of the checkpoint. Over the past day, 57 trucks were issued for departure and 57 trucks for entry. The «Pogranichnyj» checkpoint must pass 100 cars per day in one direction and the other.

Delayed clearance due to quarantine measures conducted by customs and border authorities of China in respect of each unit of trucks.

Checkpoint «Kraskino». There is a queue of 5 trucks in front of the checkpoint. Over the past day, 34 trucks were issued for departure and 34 trucks for entry. The «Kraskino» checkpoint must pass 50 cars per day in one direction and the other.

Delayed clearance due to quarantine measures conducted by customs and border authorities of China in respect of each unit of trucks.

Checkpoint «Poltavka». There is no queue in front of the checkpoint Over the past day, 59 trucks were issued for departure and 55 trucks for entry. The «Poltavka» checkpoint must pass 110 cars per day in one direction and the other.

Delayed clearance due to quarantine measures conducted by customs and border authorities of China in respect of each unit of trucks.

Checkpoint «Zabaikalsk». There is no queue in front of the checkpoint. Over the past day, 72 trucks were issued for departure and 102 trucks for entry. The «Zabaikalsk» checkpoint must pass 70 cars per day in one direction and the other.

The official ASMAP website receives electronic applications from hauliers planning to travel to the PRC. The data is then transmitted to Rosgranstroy, which generates a list of trucks for the day following the day of application. The list, compiled in chronological order of receipt of applications from carriers, is posted by Rosgranstroy on the official website. A haulier may submit an application from 0:00 to 16:00 of the current day, Chita time (from 18:00 to 10:00, Moscow time).

More information on the ASMAP website.

Checkpoint «Turij Rog». Over the past day, 12 trucks were issued for departure and 12 trucks for entry.

The work of the checkpoints of the Khabarovsk customs («Pokrovka», «Nizhneleninskoye», «Amurzet», «Poyarkovo») has been suspended by the Chinese side due to the sanitary and epidemiological situation associated with the spread of a new coronavirus infection. There is no information about the planned dates for the resumption of work of cargo routes of checkpoints.

Checkpoint «Blagoveshchensk» - «Heihe». The inter-navigational period.

Checkpoint «Skovorodino» - «Mohe». It does not function regularly (according to applications submitted by foreign trade participants).

Manchuria/Zabaikalsk - waiting 7-10 days for transhipment. On the Chinese side, plans for boxcars/semi wagons/platforms are very long, and loading can be delayed from 2 weeks to 1.5 months. In Zabaikalsk itself there is no shortage of railcars (gondola cars and boxcars), as for platforms - a telegram has come out that everything is taken by Russian Railways for wheeled vehicles, due to transfer to martial law by Russian Railways.

Naushki - hard to predict, transit time can be both 18 days station-station and 30-35 days, it depends on availability of railway platforms. Naushki - working with varying success, transshipment time is difficult to predict (sometimes fast, within a week; sometimes 2-3 weeks, depends on availability of RF platforms). Delivery time via Naushki is up to 40 days.

Vorsino station is operating normally. Bely Rast and Elektrougli are overloaded terminals, trains are abandoned on adjoining tracks. Period of abandonment up to 3 weeks. On arrival, closing of delivery within 5-7 days.

Dostyk, Altankol - delays, waiting up to 20 days for overloading (shortage of platforms).

From 00:00 on 28 March 2022, the Makhalino-Hunchun railway station has been in 24-hour operation mode. The capacity of the checkpoint is 10 trains per day for entry and 10 for exit.

The average cost of shipping a 40-foot container in March 2022 has rebounded by 15% from its peak in September 2021, Gazprombank's Centre for Economic Forecasting (CEF) said today. At the same time, the price remains 80% higher than in March last year.

For comparison, in 2021 the average cost of shipping a 40-foot container was $7,500, while in Q4 it was $9,500.

Experts estimate that compared to March last year, there has been a 125% increase in road freight traffic to Turkey, a 66% increase in traffic to Georgia and a 54% increase in traffic to Armenia.

Traffic with Azerbaijan, Kazakhstan, Tajikistan and in principle with CIS countries also increased. Demand for intra-Russian traffic also increased (by 15%), while the demand for European traffic expectedly dropped: with Lithuania - by about 40%, with Finland - by more than 55%.

European cargoes continue to be delivered, but the situation in this segment is quite complicated: while old contracts are more or less being delivered, albeit with enhanced customs control, new contracts are questionable. In addition, an extensive bilateral list of goods banned for export to and from Russia has an impact.

For some items, as market participants tell us, there is no clear idea (can they be imported?) either among businesses or customs officials. Moreover, there have been cases when a truck has left with allowed cargo on board, but by the time it has reached the border, it has already been added to the sanctions list.

At the border with Georgia, where cargo traffic has increased by 66% over the last month, there is only one border crossing point, Upper Lars. There are regular truck jams at Upper Lars.

However, at the border with China the infrastructural capacity is also limited. Firstly, the border crossings on the Russian side of the border are in principle in need of modernisation. Secondly, strict anti-epidemic measures are still in place for entering China: transporters are only allowed to leave a trailer/vehicle for loading/unloading in the border area, after which they must return for it again.

A quarantine is declared in Shanghai on 27 March due to a record outbreak of coronavirus, according to Seatrade Maritime. The lockdown will be imposed in phases. The eastern part of the city will be closed for mass testing from March 28 to April 1, while the western part will be closed from April 1 to 5. Public transport will not operate, production will be suspended and residents will not be allowed to leave their homes.

The Shanghai International Port Group (SIPG) said the port will operate normally during the lockdown period and provide services around the clock at all terminals and other port facilities. "However, ground infrastructure and transport connectivity will be disrupted," the publication wrote. - Container truck drivers will have to provide a negative coronavirus test of 48 hours or less. Many entrances to motorways are also blocked and vehicular access to the city is restricted."

Several logistics companies in areas in the first phase of the blockade said they had suspended operations and were not accepting cargo for the duration of the restrictions.

"Shipments to and from Shanghai will be reduced by 30 per cent due to the lockdown, which will be in place in the Pudong and Puxi areas of the city until April 5," Maersk said in a statement to customers. - As a result, delivery times will increase and transport costs could rise.

The lockdown may well be extended beyond 5 April if more Covid cases are uncovered. The current spike is apparently the highest since the virus emerged in Wuhan two years ago, leaving question marks over the long-term viability of Beijing’s strict virus control policies.

With Asia-North Europe container spot rates still falling, ocean carriers are now canvassing smaller shippers to agree short-term three-month contracts.

The dynamics of all spot rate indices for routes from Asia to Northern European ports indicate weakening demand. The Drewry WCI sub-index for this market segment fell last week by 8%, or more than $1,000, to $11,200 per FEU. Compared to the last decade of January before the start of the New Year festival in Asia, the sub-index has already dropped by almost $3k.

Meanwhile, on the trans-Pacific front, spot rates from Asia to the US west and east coast saw a slight drop this week, with the Freightos Baltic Index (FBX) settling at $15,908 and $17,318 per 40-ft respectively.

 

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