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Infobanner Coronavirus DB Schenker

Customer Advisory on COVID-19: Updates from Greater China

We are closely monitoring the Novel Coronavirus (COVID-19) situation. An update on how the quickly evolving situation may affect our operations. Contact your local DB Schenker branch for detailed information.
 

Feb 20, 2020

Since the last advisory on Feb 17, there have been no significant change in status on the situation in Greater China. We continue to make efforts towards feasible alternative solutions in order to prepare for market rebound. Please continue to engage with your account managers on your latest plans and projections.


Personnel Updates:

As far as we are aware, there are to date no reports of COVID-19 infections among our DB Schenker workforce.


Operational Updates: 

Most of our offices in Greater China have resumed work with some still under constrained capacities. Tianjin and Wuhan continue to remain closed following the regulations from the local authorities.

Status details can be referred to from the dashboard below:
 

Market Updates:

Air Freight

  • The market is experiencing 40% capacity shortfall with passenger flight schedules severely disrupted and freighter flights reduced.
  • Carriers are currently facing manpower crunch due to operating with double crews for split-shifts.
  • Truck resources are limited for pre-carriage and on-carriage with approx. 30% of drivers available.
  • PVG CFS under restrictions since the industrial park does not allow drivers who have been to 20 of the listed areas/city in the past 14 days to enter the area. To ease the backlogs and delays, PVG drivers are on standby to support trucks that can enter and unload.
  • We have been working on tailor-made solutions for our customers to resolve the backlogs as well as prepare for the measured recovery. Please contact your account managers for more details.
  • We have already set-up flight operations and extra capacity to support customer needs:
    Round trip flight operations between PVG to FRA with departure ex PVG on Thursday and Sunday every week.
    Flight operation from HKG to FRA will start from March 8 with departure ex HKG on Thursday and Sunday every week.
    Starting this week, extra space on commercial carriers ex PEK to Europe will be available.
    Extra capacity ex CGO on standby basis (3-4 day activation).
  • Various dedicated customer flight operations have been established and our team is on standby to support with solutions for our customers’ shipping needs.

Ocean Freight

  • Due to the flat market demand, carriers pull out capacity by blank sailings in Feb.
  • Vessel space for export is sufficient, container trucking resource is limited, although it is gradually recovering from this week.
  • Import shipments are threatened by rising rates and lack of equipment in overseas POL.

Land Transportation

  • Jiangxi, Guizhou, Zhejiang announced the cancellation of the control points set-up on highways within the province (control points only on cross-province highway gates and in Wenzhou city). Jiangsu, Fujian, Liaoning reopens some of the gates and service stations which were previously closed.
  • Land bridge: Ping Xiang border is recovering gradually. Working hours extended to 8:00-19:00. Daily limitation of 200 trucks in and out via Ping Xiang border. Estimated Customs Clearance lead time is 1-2 days.
  • Multi-modal Rail West Bound after recovery, the ETDs of 1st departure are as follows:
    Chongqing: Feb 19, Feb 22
    Chengdu: flexible
    Xi’an: Feb 23
    Yiwu: Mar 3 (to be confirmed)
    Hefei: Feb 19, Feb 20
    Shenyang: Feb 22
    Suzhou: Feb 23
    Wuhan: Suspended
    Zhengzhou: Suspended
  • Leveraging our leading solutions in block train services, on Feb 17 we successfully completed a cargo delivery by multi-modal rail transportation, connecting CR Express with domestic cargo express train. It took 16 days to deliver the goods from DUISBURG terminal in GERMANY via CHONGQING to CHANGSHA rail terminal in CHINA, which saved four days compared to normal operations.

Contract Logistics

  • No status update since the last advisory.

Feb 3, 2020

Operational Updates:

Taiwan and Hong Kong are business as usual with no major disruption.Almost all Mainland China cities and provinces have extended the postponement of work till Feb 9 or thereafter, with the exception of Beijing, Chengdu and Urumqi which have commenced work on Feb 3. Here, we would like to stress that health and safety is of utmost priority. Even in cities where such postponement is not imposed by regulation, we maintain a strict policy of adequate essential staff and skeletal shifts only.Most of our staff from various Mainland China branches are either working from home or with skeletal crew on duty. Government emergency control measures are NOT likely to change during week 6 (Feb 3-9), but we will continue updating on new developments should there be any changes. 

Where local government regulations permit the resumption of work and where circumstances allow, we will be able to adjust and plan adequate resources to respond and support customers’ needs.


Market Updates:

  • Air: Majority of Airlines have cancelled their passenger flights to / from China. Freighter flights which were cancelled over CNY have similarly extended the period of cancellation through Feb 10. Valid freighter flights also have alternate crews to avoid having extended layovers longer than necessary in China.
    There have been news reports indicating that the U.S is considering flight bans for aircrafts flying directly from China. We anticipate that capacity will be severely impacted if this comes into effect; further adjustments will be forecasted over the coming weeks. Some countries have already suspended flights to / from China completely. Disruptions in supply chains are expected, especially for the period when factories resume partial operations.
    Our HKG / Taiwan offices have been activated as alternative gateways and are ready to support! (subject to traffic restriction policies from the authorities and limitations of reach from origin to the alternative gateway). Notwithstanding, we continue to explore other feasible solutions to provide best-case options for our customers.
  • Ocean: More and more carriers have also announced blank sailing towards China ports.
  • Land transport: Due to the control of Pingxiang Port (China-South East Asia), LANDbridge services are suspended. Russia Border Port (China-Russia) cross border trucking services are also affected, though an alternative solution via Alashankou (Kazakhstan) is currently being explored.
  • Contract Logistics: Our TWN and HKG warehouse resume work under normal capacity. For other CL sites, our operations are affected by a combination of regulations imposed by local government authorities. We continue to support customers’ needs wherever regulations allow and employee safety can be assured.

Our Business Continuity Plans (BCP) are available to suit the varying needs of all our customers and stakeholders. As always, our network of account managers will work closely with you, should you require more specific and tailored measures under the circumstances.  

We stand ready to mobilize our transportation capacity, and together with our customers and partners, support all efforts of epidemic prevention and control and expedite all shipments of critical emergency necessities to the affected regions.