(Yicai Global) April 13 -- A senior executive at a big Chinese food and edible oil producer has suggested looking into using currently idled passenger rail capacity to ensure the shipment of goods to Shanghai after the city’s Covid-19 restrictions disrupted road freight.

The executive told Yicai Global that his company had received orders for nearly 500 tons of foodstuffs and oil in the past week, but no driver has been willing to help deliver them even if it offered up to CNY30,000 (USD4,712) per journey.

The cost of trucking 30 tons of edible oil from Shandong province to Shanghai, also on China’s east coast, has surged to between CNY25,000 (USD3,928) and CNY30,000 from the roughly usual CNY7,000 (USD1,100).

Since the start of this month, the company has been unable to ship products to Shanghai because of the disruption to logistics.

Some passenger rail links were halted after the resurgence of Covid-19 in Shanghai. The executive advised the city’s rail authority to contact nearby counterparts to open a green channel for anti-epidemic materials and prioritize suppliers, so that goods can be sent directly to the city.

Regarding road freight, he suggested setting up goods transfer hubs in areas around Shanghai that are Covid-free. Goods can be stored in containers and sent to Shanghai after truck drivers drop them off.

In that way, Shanghai can get goods, while drivers remain outside the city and so do not need to worry about quarantine on the return journey, the executive added.

Major Chinese food and edible oil producers have a number of plants in Shanghai and the surrounding provinces, with much production capacity, but oil and foods cannot be delivered in time due to logistics disruption.

Editor: Peter Thomas