The 2016 G20 summit will be held in Hangzhou on the 4th and 5th of September, which is within 2 hours drive of Ningbo and Shanghai ports. Below is a updated guideline on the restrictions already announced, key points for our customers to consider are:

> There is a production restriction for week 34/35, with polluting industries facing a longer period
> For Zhejiang, the impact on factories located in Jiaxing, Hangzhou, HuzHou are expected to be greater considering the venue of G20 and the higher proportion of the polluting industries
> Shipments may be advanced by 2 to 4 weeks
> Bookings with carriers may be advanced by 4 to 6 weeks so as to secure a space

3 layers of production and traffic restrictions have been announced between 24th Aug and 6th Sept:

1. CORE AREA

50KM from the G20 venue – covers most districts of Hangzhou, part of Huzhou, Jiaxing and Shaoxing

2. STRICTLY CONTROLLED AREA

100KM from the G20 Venue – covers other districts of Hangzhou, other parts of Huzhou, Jiaxing and Shaoxing, and all Ningbo, Jinhua (Yiwu) and Quzhou.

3. CONTROLLED AREA

300KM from the G20 venue – covers Wenzhou, Zhoushan, Taizhou and Lishui

The local government has announced the following production and traffic control measures to meet air quality and security requirements:

Hangzhou City: 1st Sept – 7th Sept

> Hangzhou citizens will have one week off

Shanghai: 24th Aug – 6th Sept

> Pudong District will reduce 50% of Waigaoqiao power plant’s capacity and may shut down 34 factories including Du Pont, BASF, GM etc.
> JinshanZone will shut down all chemical factories
> Chemical Zone and FengxianZone will list companies that need to be controlled
> To reduce 30% of all port operation power and 50% Jinshanport operation power
> Factories that fail to complete the pollution control task will be shut down
> High pollution vehicles in Shanghai are not allowed to enter Hangzhou during this period of time
> The production and traffic restriction will only be applied to the southern part of Shanghai, that will mitigate the volume impact on Shanghai exports

Ningbo Hangzhou Bay New Zone: 24th Aug – 6th Sept

> Traffic restrictions apply to the whole Ningbo city. Add-even number restriction reduces at least 50% of available trucks.
> Factories in Ningbo Hangzhou Bay New Zone will shut down or reduce productivity by 50%

Shaoxing, Zhengjiang

> All dyefactories are closing down for 2 weeks from the end of August
> Since March, Shaoxing Government has begun to regulate high pollution printing factories, 64 factories have already shut down until they have reached the environmental standards required

Terminal Operations

> We understand from terminals that impact to terminal operation will be minimal
> Terminals have been requested to strengthen security and safety measures to ensure vessel and operation workers safety
> Terminals do not foresee productivity to be impacted by reducing power from the plants
> Neither Ningbo nor Shanghai terminals have received any notice not to handle dangerous cargo during G20. It is business as usual for the terminals at the moment.

For further information on how the summit may impact your shipments please contact your designated Ligentia sales or account manager.