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Infobanner Coronavirus DB Schenker

Customer Advisory COVID-19 Global Update

July 7, 2020

Please find here the most recent edition of the COVID-19 global customer advisory update. Economies worldwide are heading towards a new normal. Every other week this update will give you up-to-date guidance and orientation over all business areas and all geographies.

In the 24/7 newsfeed on our website, you will find additional links and downloads supporting the topics of this document. Please visit: 24/7 News Update

Your account team is continuously updated on the evolving situation and our corresponding solutions. Please continue to be engaged with your Account Managers on your latest plans, prices and projections. They will invest the utmost effort to support your business.


Global Market Updates

  • Global

(Jul 7, 2020) - Supply in the airfreight market remains limited. Overall capacity is still trending at approximately -26% compared to previous year and is not expected to recover during the second half of the year. Considering the current unknown development of the overall consumer behaviour, economic outlook as well as related passenger demand, a strong increase in passenger flights is not expected.

Additionally airlines will have to take freighter aircrafts out of their schedules to conduct required maintenance checks which will further impact the already short supply and congested capacity situation. Access to capacity remains critical especially considering the peak season in the upcoming months. Therefore forecasting is becoming even more important to ensure a smooth supply chain planning and demand planning can be implemented in a joint effort.

➢ Please reach out to your Account Manager or local DB Schenker team to align on your forecast for the second half of the year and especially peak season to prepare accordingly.

In addition, our console charter flight schedule remains in place to support your demand and critical shipments ensuring we provide you with alternative solutions:

Our console charter flight schedule now includes the following flight operations:

➢ Europe – China – Europe: 3 flights per week (B747-400F)
➢ Hongkong – Europe: 2 flights per week (B747-400F)
➢ China – USA: 3 flights per week (B747-400F)
➢ Europe – USA – Europe: 3 flights per week (MD11F and B747-400F)
➢ USA – Australia: 1 flight per week (B777F)
➢ Europe – India – Europe: 1 flight per week (B747-400F)

  • Europe 

(Jul 7, 2020) - All offices remain in full operation with access to terminal handling and ground transportation. All our European hubs deliver import and receive export freight with no backlogs recorded towards the weekend. Operationally, our linehauls to and from the hubs remain on time. In some areas, our cross-border trucks might experience some minor delays.

Airfreight export market volumes are slightly lower, but import is still very stable on a high level. China imports go very strong at continuously all-time highs due to an ongoing strong demand in medical supplies, protective gears, and face masks which DB Schenker continues to support with utmost priority.

➢ Contact your local Account Manager on priority routes for PPE.

  • Asia Pacific 

(Jul 7, 2020) - While risk of resurging COVID-19 infections remain high in some countries across APAC, our air freight operations remain stable and available to support customer needs. Delays are expected in customs clearance and transportation, as lockdowns in some countries affect availability of workforce, including ports, airports, etc. Alternatives to move / transport cargo via other gateways / routes are established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

APAC countries are opening with majority allowing manufacturing activities. Congestion in Greater China remains, albeit improving gradually. Capacity is expected to remain volatile.

More countries are easing up their restrictions allowing for restarting certain industries which will increase export demand for these countries.

➢ On India charters, plans are in place and timed for when the market opens. DB Schenker is now also able to support cross border trucking within India.

➢ Demand for ex China is stabilizing. The backlog at all China airports is requiring minimum 48 hours advance notice for tendering in of cargo.

We have put additional charter programs (such as for Intra-Asia SG to IN and others) in place. Do get in touch with your Account Managers for further details.

  • Middle East/Africa 

(Jul 7, 2020) - Overall, our air freight operations in the countries remain uninterrupted as we continue to serve customers and manage the current demand with available cargo capacity. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.

Situation

Country

No operational restrictions for air cargo business

Qatar, Kenya, Oman, South Africa, Bahrain, Saudi Arabia, UAE, Egypt

Restrictions for operational air cargo business

➢ Please contact your Account Manager for more information on additional routes.

  • Americas 

(Jul 7, 2020) - USA – China

➢ Capacity remains ample for USA exports to key destinations in China. Large number inbound scheduled freighter flights and charters continue supporting USA exports providing sufficient capacity to meet demands.
➢ Rate levels are relatively low but remain above pre-COVID-19 levels.

USA – Asia (excluding China)

➢ Destinations with tight capacity continue to be Australia and India from all USA origins. Korea and Singapore with tight capacity and some backlogs from the USA eastern gateway cities of JFK, ATL and MIA. Market pricing moderating from prior highs, but still above pre-COVID-19 levels.

USA – Europe

➢ Demand is moderate with sufficient capacity to avoid backlogs. Pricing has moved downwards, but as countries begin to reopen the possibilities of renewed demand with accompanying upward pricing pressures are possible.
➢ Schenker to maintain round trip freighter flight operations: 3 x week ex ORD and ATL to FRA.

USA – Latin Am / Latin Am to Europe and APAC

➢ Demand for available freighter capacity remains strong with space tight to Peru and Bolivia with backlogs. Pricing trending higher to Central American Markets, Brazil, Peru, Bolivia and Argentina. Some passenger flights returning, but far from previous frequencies and providing much additional capacity.
➢ Services continue but with some flight scheduling disruptions / delays.

  • Global

(Jul 7, 2020) - More than 500 sailings have been blank, services suspended or merged during the past months. During this time, almost all trades have declined by double digits. This affects all verticals except perishables. Until the end of the year, Seabury expects Global container trade to be reduced by 22 Mio TEU compared to 2019. For quarter 3 / 2020 another 182 sailings have been announced as blank. The current liftings and outlook for the next four weeks look strong for the trunk routes, i.e. Asia to Europe, Asia to NORAM, Europe to Far East. Liftings on Europe to North America develop a little weaker. Carriers are pushing hard for yield improvement measures and select cargo for uplift accordingly. Low priced volumes will not be able to get space ex Asia.

Blank sailings / suspension programs / service mergers / combined service loops remain the tool to drive supply and demand forward and will be continued throughout the entire third quarter. About 75 blank sailing sailings have already been announced for this time period.

Should July develop slowly, carriers will not shy away from further capacity reductions and void sailings.

With all stakeholders in the supply chain, the unpredictability and constant changes of the last weeks have underlined the need to stay flexible and to be able to adapt at any time. It is not a surprise that carriers announce that their booking acceptance will not go beyond six weeks due to possible future changes.

Please expect the situation on all trades subject to continuous changes.

With massive vessel withdrawals, uncertain outlook on vessel utilizations and partly huge impacts on port terminals, we need to prepare for changing schedules and transit times (due to slow steaming, port omissions or additional port inclusions as a result of service mergers), sudden / unexpected delays in uplift, increased bottlenecks of equipment availability, less frequent departures and sudden surcharges possibly resulting in higher costs for the supply chain.

Our experts in Ocean will support and guide for:

➢ SchenkerOcean priority product on all main trades which guarantees loading within a fixed window.
➢ Various SchenkerOcean delay in transit options (a. stopping of cargo in a  t/ s port, b. using own or contracted warehouses and store goods accordingly), this reduces actual cost in the ports (costly storage) and helps ports to prevent from being congested and thus ensures moves at quay without waiting time for truckers.
➢ SchenkerOcean offer for “slow boat – fast boat” possibilities if delay in transit is not an option (e.g. with sailings around Cape of Good Hope).
➢ SchenkerOcean offers for alternate routing possibilities to ensure cargo is lifted from port of loading.
➢ Volume forecast and allocation planning: We have access to volumes on all alliances and support volumes planning through consultation services (allocation match based on customer forecast). Under progress: volume prediction per vertical.

New: Contact your Account Manager regarding Personal Protective Equipment services ex China Europe.

  • Europe 

(Jun 23, 2020) - On trades to the West, the utilization to North America has improved to over 90%, however LATAM destinations are under decline. It is expected that carriers will take additional actions on curtailing the capacity.

On exports ex Europe to the East, carriers still report strong booking situations with only limited shortfalls. Especially commodity volumes are still going strong (logs, chemicals). Equipment availability becomes a larger concern due to an upcoming 25 - 40% reduction of inbound flows plus expected longer usage of the equipment.

All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Jul 7, 2020) - While the risk of resurging COVID-19 infections remains high in some countries across APAC, our Ocean operations remain stable and available to support customer needs. Delays are expected in customs clearance and transportation, as lockdowns in some countries affect availability of workforce, including ports, airports, etc.

➢ Alternatives to move / transport cargo via other gateways / routes are established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

Ex China, Ocean Freight is stabilizing, and blank sailings are reduced but still impacting all trades. Whilst demand to Middle East remains weak, some slow uptrends can be monitored on trades to ISC and Oceania. An increase in demand for the express ocean services on the trans-Pacific can be monitored.

For all APAC countries, customers are encouraged to use seaway bills to avoid reliance on original bill of lading as courier companies may not deliver timely in the coming weeks and most companies, including DB Schenker, are operating with working from home based on health concerns and strict government regulations.

  • Middle East/Africa 

(Jul 7, 2020) - Intra Middle East trade is seen to pick up with increase in market demand, especially in Kuwait and South Africa.

➢ Please get in touch with your Account Manager for the latest rates.

(Jul 7, 2020) - Our Ocean Freight offices in the countries continue to serve customers as logistics and supply chains are considered business critical as per local government directives.

  • Americas 

(Jul 7, 2020) - Ocean carriers are continuously largely implementing blank sailings. Current announced blank sailings will last to the month of June. Currently observing some equipment shortage at US origins.

  • Global

(Jul 7, 2020) - Europe Land is fully operational and available for business, managing existing constraints. Asia gives a heterogeneous picture with most countries fully operational and available for business while a few countries (such as India) are facing challenges, however operating.

Asia Landbridge (China – South East Asia) as well as Eurasia Landbridge (China – Europe Train) are fully operating. Land operations in the Americas are also showing constraints, but still working close to normal.

  • Europe 

(Jul 7, 2020) -

Restrictions directly or indirectly affecting the transportation of goods are largely lifted in an increasing number of European countries. For any potential cases of disruptive conditions, we follow our pre-defined contingency plans to ensure flows of cargo as much as possible.

During the last weeks we had suspended the money back guarantee of our System Premium product due to the unpredictable and volatile circumstances. We are happy to announce that immediate effect we will restore the money back guarantee for System Premium shipments. Delivering superior quality for our customers was always and will remain the highest priority for us – for that reason the restoring of the money back guarantee was of utmost importance for us.

With increasing economic activity in many European countries, we are adapting our transport service offerings daily to the needs of our customers. Are you restarting or expanding your international business activities? DB Schenker Land is your partner with the strongest and most resilient network across 38 countries in Europe. Moreover, with our digital channels like Connect4Land we offer a 24/7 entry point to our transport services, easy to use from everywhere, every time – Click. Ship. Done.

Some receivers continue to have limited operations and we ask all shippers to check the delivery possibility with the consignee to avoid cost for storage or return shipments.

  • Asia Pacific 

(Jul 7, 2020) - There are no significant updates in status from the previous advisory.

Asia is emerging in different levels with domestic road freight, Asia road International (Asia Landbridge), and Asia-Europe train transport (Eurasia Landbridge) from the COVID-19 crisis.

➢ Eurasia Landbridge

Eurasia Landbridge has doubled the volume since March 2020 owing to the reliable lead time during COVID-19.

Rail services include LCL, FCL, single container, company train, and block train services on weekly basis, both eastbound and westbound. Strong road networks and services at origin and destination ends enable seamless end-to-end services.

Lead time terminal to terminal is 16 - 18 days westbound, 18 - 20 days eastbound. Also, we launched a weekly block train train Xian to Rostock with a lead time of 12 days.

➢ Asia Landbridge

Our Asia Landbridge has also doubled volume since March 2020 with a compelling lead time and freight cost.

Asia Landbridge also supports Air and Ocean connections by delivering the cargo to the nearest gateway with capacity, providing in-transit change of mode services when destination airspace is restricted or air capacity limited.

Both FTL and LTL services are available within the Asia continent, with daily departures for FTL complimented with our LTL service which has three departures southbound and twice a week northbound.

➢ Domestic Land

Operating in 17 countries across Asia, our volume and operations are back to normal. We are constantly tailoring our services to enable customers to meet the changing demand from the current erratic activity spike; recently we have developed a contactless POD signing process to facilitate a safe cargo handover.

  • Middle East/Africa 

(Jul 7, 2020) - From June 1, the lockdown in South Africa has been eased down to level 3. It will increase DB Schenker’s capacity for local operations. For more information, please get in touch with your Account Manager.

(Jul 7, 2020) - International GCC land border connecting Saudi Arabia to other countries has been opened for land transportation / land freight movement with limited operations.

  • Americas

(Jul 7, 2020) - Mexico: 100% operational with less capacity to dispatch on time from Border to Final destination (Northbound shipments). Employees will return on July 15.

USA: Experienced significant increase in truckload shipments. Onboarded six carriers.

Brazil: Cross Borders between Brazil and other countries continuous working in a reduced time. 90% of staff is still working from home.

Canada: No issues with capacity. Montreal linehaul running daily – averaging 95% capacity in the last week and had two days with a 2nd trailer. Chicago inbound running daily – averaging 90% capacity in the last week. Warehouse staff are working on site with shifts that do not overlap.

  • Global

(Jul 7, 2020) - Global restrictions are further easing up with regional exceptions, return increase of restrictions especially in APAC: India and partially China. In other regions, especially Europe, we observe business getting back to regular performance level - albeit with certain market exceptions – and support with respective measures and services. We continue to anticipate forecast and demand with our customers:

➢ As we continuously receive requests for temporary space, we like to keep up our customer support and offer: In case you need temporary space, just reach out to your DB Schenker Account Manager or local contact person; find more information here!

Still are we committed to safety and do prioritize protection of our staff and keeping our customers’ businesses running. Hence BCPs are in place and monitored around the world with dedicated guidelines and preventive measures.

  • Europe 

(Jul 7, 2020) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific 

(Jul 7, 2020) - Risk of resurging COVID-19 infections remain high in some countries across APAC as we closely monitor all our markets & operations and where appropriate, taking pre-emptive steps in planning for recovery OR reinstituted restrictions.

For India, out of our 49 sites, 3 warehouses (Lonad, Dohale & Guwahati) are closed due to imposed government restrictions. Please refer to our India website for detailed information via download.

For Greater China, lockdowns in several northern cities as reported previously, continue to not have significant impact on our operations.

Indonesia extended PSBB restrictions until July 17, and Malaysia’s RMCO restrictions remain until Aug 31.

For Australia, Victoria state government is re-imposing a lockdown, and closing its borders to contain rising infection rates.

While governmental imposed restrictions in APAC countries continue at varying levels, our service levels so far are maintained with our CL operations available to support customer needs.

Delays may be expected due to availability of workforce and enhanced strictly enforced hygiene and monitoring SOPs. Customers may contact the respective DB Schenker representatives for further support if necessary.

  • Middle East/Africa 

(Jul 7, 2020) - From June 1, lockdown in South Africa has been eased down to level 3. It will increase DB Schenker’s capacity for local operations. For more information, please get in touch with your Account Manager.

  • Americas 

(Jul 7, 2020) - All CL America sites are open and operating without limitations following government regulations and guidelines of each individual country and state.

  • Global Projects & Industry Solutions

(Jul 7, 2020) - Capacity for break bulk, for out-of-gauge cargo, but also for some cargo types which are normally transported containerized, is still available in the break bulk shipping market segment. DB Schenker is in regular exchange with all major and relevant multi-purpose vessel (MPP) operators. Full logistics services (incl. part / full charter) can be offered and bookings can be placed according to customer requests. Some operational delays are still expected following various lockdowns and restrictions implemented. In addition, quarantine measures are in place for various ports which have an impact on lead time and costs.

➢ Our dedicated Global Projects & Industry Solutions teams around the world are fully operational and support clients to develop tailored transport solutions for all break bulk or out-of-gauge shipments or any other project shipment independent of markets or trade lanes.

  • Fairs, Events and Special Logistics

(Jul 7, 2020) - The outlook for the global exhibition industry is generally positive as more and more countries restart exhibitions and ease existing travel restrictions. Despite this general positive situation, broad segments of the economy remain concerned and cancel their participation in exhibitions, which leads to further cancellations or postponements of scheduled events.

Our teams are in close contact with the leading exhibition organizers and associations worldwide and continue to monitor all developments closely. As the situation varies in all countries, our Global Fairs & Events Service Center is up-to-date and available to answer all your questions and assist you in all situations with tailormade solutions.

Reach out and contact our colleagues at customerservices.fairs@dbschenker.com

DB Schenker Organizational Update

DB Schenker is closely monitoring the COVID-19 situation. With precautionary measures in place, we are aiming to maintain full operability across all DB Schenker operations. In our offices across all continents, we have taken action to enable as many employees as possible to work from home to support the social distancing guidelines put in place by public authorities or the government in many countries. Our first priority is the health of our employees and partners. We adhere to the recommendations of health experts, especially WHO, related to, for example, hygiene precautions.

The next customer advisory will be the July 21 release or earlier should there be significant developments. Visit our website in advance to be among the first informed.


Thank you for your patience and support.
DB Schenker COVID-19 Customer Advisory Team

COVID-19 Customer Advisory Global Update – June 23, 2020

COVID-19 Customer Advisory Global Update – June 9, 2020

We have used our utmost care in providing the information above. While the information above has been provided to the best of our knowledge and ability, the DB Schenker Group does not assume any liabilities arising from this information of the use thereof.