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DB Schenker Air Freight Intermodal Solutions Airplane Inside Loading

Customer Advisory COVID-19 Global Update

June 2, 2020

Please find here the most recent edition of the COVID-19 global customer advisory update. Every Tuesday 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

(Jun 2, 2020) - There are no significant updates in operational status from the previous advisory.

(May 26, 2020) - The airfreight market remained very volatile in May 2020. While the demand situation is very different across the regions, supply is significantly lower compared to 2019. The available global capacity declined by –26% year-on-year and international belly capacity is at –81% vs previous year. The strong decline is expected to remain flat due to limited international passenger flights returning to the market. PPE demand ex China to Europe has decreased within the last week as shipment are now converted to Ocean and Rail for future supply. This has also led to a slightly lower demand ex China to Europe while demand from China to US remains at a higher level compared to the European trade.

As the market remains highly volatile supply chain planning is becoming even more important compared to previous years. Therefore, it is essential to take the forecasting to the next level and ensure we can meet your demand by securing enough capacity through our dedicated airfreight solutions. Please reach out to your account managers to ensure we can support you to the best possible and share your future demand forecast with your DB Schenker Account Manager or local team. We want to be your airfreight provider of choice during these challenging times serving you with the best possible solutions in the market.

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 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

(May 26, 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.

  • Asia Pacific 

(Jun 2, 2020) - There are no significant updates in operational status from the previous advisory.

(May 26, 2020) - APAC countries are slowly opening, with most countries allowing manufacturing activities. Pick up is expected in the coming weeks.

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 continuing due to PPE and other general cargo. Backlog at all China airports, requiring at least 48 hours advance notice for tendering in of cargo.
➢ The Transpacific trade from China is currently the most constrained trade lane. This is due to a high PPE demand from China to US. Additional passenger flights are supplying the urgently required capacity for medical equipment. Any availability for additional flights or capacity is highly limited within the next couple weeks.

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

US carriers have also been informed to prioritize cargo for the purpose of transportation of medical supplies in / out of the US. Medical devices, including masks, cannot be exported from the US.

  • Middle East/Africa 

(Jun 2, 2020) - While countries in the region begin to relax restrictions, passenger flights continue to be suspended. Except in the UAE, limited passenger services have begun on selected routes. DB Schenker in the region can manage the current demand with available cargo capacity. For more information, please get in touch with your Account Manager.

(May 26, 2020) - Overall, our airfreight operations in the countries remain uninterrupted as we continue to serve customers. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.



No operational restrictions for air cargo business

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

Restrictions for operational air cargo business

  • Americas 

(Jun 2, 2020) - USA – China

➢ With the large number of inbound freighter flights, scheduled and charters, USA exports have sufficient capacity to meet demands.
➢ Rate levels have dropped but remain above pre-COVID-19 levels. No backlogs from the USA to China.

USA – Asia (excluding China)

➢ Australia, India, Japan, Korea, Singapore and Thailand, Singapore with tight capacity with some backlogs. Market pricing moderating from prior highs.

USA – Europe

➢ Demand is moderate with sufficient capacity to avoid backlogs. Pricing has moved downwards, but as countries begin to re-open, possibilities of renewed upward pricing pressures.
➢ DB Schenker is making full use of its own 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 some destinations. Pricing trending higher to some markets.
➢ Transit delays possible at airport / carrier terminal operations.

  • Global

(Jun 2, 2020) - Generally, the ease of lockdown measures in the world helps the demand for volumes to move up, resulting into partly unexpected high utilization. This creates in parts, roll over situations and very tight space scenarios. As an example, as India has restarted the exports, we notice occasional delays on booking releases by the carriers.

To boost volumes, we noticed a few isolated spot rate actions took place in a few main trades. We need to keep in mind that cargo generated through these spot actions ultimately will be under strict yield control and often subject to be rolled, given the current surge of volumes and pressure on capacity. This is to be considered for the supply chain. Our focus remains on ensuring uplifting for our customers. Please also keep in mind that, while in some services sailings have been re-deployed, void sailings will be used to continue to keep a strict balance between supply and demand.

The restriction in capacity for the month of June is still impressive: with 21% less capacity available in the TP (Asia to North America), 11% less in Far East westbound (Asia to North Europe) and 26% less capacity in the trade from North Europe to Asia.

The main routes from Asia to Europe and Asia to North America have been seeing a total cancellation of 3.4 Mio TEU of carrying capacity due to COVID-19 since the outbreak in China until end of Q2 / 2020.

This number increases to 4.6 Mio TEU if blank sailings related to Chinese New Year are counted into this scenario as well.

It becomes clear that the effects of ramping up and ramping down will keep the supply chain busy for a couple of weeks before and after the capacity measures. In consequence, access to capacity varies from week to week and is different trade by trade. This also impacts lead times which are continuously changing.

Overall, we see a decline of 7 million TEU in 2020. Record low oil prices and increased fears about port congestion when post-pandemic China volume arrives in the EU over the next few weeks.

Inventory in the warehouses at destination is still high. We expect that receivers might not pick up boxes from the ports which would lead to congestion. We can support to avoid or to clear bottlenecks with pre-pull activities and arranging space in our facilities.

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 any time. It is not a surprise that carriers announce that their booking acceptance will not go beyond 6 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: Personal Protective Equipment services ex China Europe.

  • Europe 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

(May 26, 2020) - 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.

On trades to the West, the utilization is overall rather weak (to NORAM as well as to LATAM); it is not a surprise that carriers act with reductions causing a massive drop in tonnage.

All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Jun 2, 2020) - There are no significant updates on the operational status from the previous advisory.

Ex China, Ocean Freight is stabilizing, and blank sailings are reduced but still impacting all trades significantly. Whilst demand to Middle East extremely 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 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

(May 26, 2020) - Vessel utilization now between 95% to 100%. The share of blank sailings has reduced to less than 30% to the Middle East and less than 20% to Africa.

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.

(May 26, 2020) - As an alternative for airfreight and land transportation in GCC, DB Schenker is offering weekly less-than-container load (LCL) consoles from the port of Jebel Ali (AE JEA) to Abu Dhabi, Bahrain, Kuwait, Oman, Pakistan, Qatar, and Saudi Arabia.

  • Americas 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

(May 19, 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

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

Europe Land is fully operational and available for business, managing constraints and challenges in several countries. Asia gives a heterogeneous picture with China fully operational and available for business while other countries are facing challenges, however operating. Asia Landbridge (China – South East Asia) as well as Eurasia Landbridge (China – Europe Train) are fully operating. India with lockdown also affecting cargo flows. Land operations in the Americas are also showing constraints, but still working close to normal.

  • Europe 

(Jun 2, 2020) -

Transportation of all goods by DB Schenker is not affected by travel restrictions for most of the countries. For any potential cases of disruptive conditions, we follow our pre-defined contingency plans to ensure flows of cargo as much as possible.

In case lead times and / or costs cannot be secured selectively, we kindly ask for your understanding. System Premium shipments are still accepted and will be handled with highest priority and fastest possible lead times. Nevertheless, under the given circumstances, we need to suspend the money back guarantee of our System Premium product until further notice.

As some receivers closed their operations, we ask all shippers to check the delivery possibility with the consignee. DB Schenker reserves the right to send back shipments that cannot be delivered and charge the return accordingly or charge for storage in our warehouse.

  • Asia Pacific 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

Borders across Asia remain open (China / Vietnam border is still congested) allowing international cross border trucking to serve as an alternative to airfreight whilst Europe is being serviced via our regular trains from China. Asia is starting to emerge from the various lockdowns. Singapore’s Circuit Breaker ends June 1 with a three-phase opening and Malaysia will end their Conditional Movement Control Order (CMCO) on June 9. India mostly remains under lockdown with the government extending restrictions until June 30. DB Schenker India can arrange security escort services where needed to move your essential cargo to reduce time at road checkpoints. Cross border trucking is projected to resume between India and Bangladesh.

Strong volume recovery in Vietnam, Malaysia, Japan, Korea, Singapore, Indonesia, Australia, New Zealand, with the easing of relevant restrictions in some of the countries.

Thailand volumes remain below same time last year, mainly impacted by reduction in the automotive industry.

Bangladesh volumes affected by India border closures. Myanmar airspace restricted but trucks can cross the border.

India authorities adjusted restrictions in states via Red, Yellow and Green Zones to calibrate extent and enforcement of measures. India expects to return to 80% production in a few weeks (please refer to our India website for detailed information via download).

  • Middle East/Africa 

(Jun 2, 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.

(May 26, 2020) - International GCC land border connecting Saudi Arabia to other countries has been opened for land transportation / land freight movement with limited operations.

  • Americas

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

(May 26, 2020) - Mexico: US / MEX / CAN / C.A. are working normally but with less capacity to dispatch on time from Border to Final destination (USA side).

Canada: Operations mostly running normally. No issues with capacity. We have segregated shifts to avoid overlap and are implementing social distancing.

USA: Capacity still loose, however certain regions at premium.

Brazil: Working normally. Borders between Brazil and other countries have reduced the working hours and staff. Main States remain in quarantine.

  • Global

(Jun 2, 2020) - Global restrictions are further easing up. With regional exceptions, still more and more sites are opening again or preparing for ramping up, getting back to full performance, as higher volumes are coming in.

We continue to offer close communication and anticipate forecast and demand with our customers:

➢ In case you are in need of temporary space, reach out to your DB Schenker Account-Manager or local contact person!
➢ Please stay in touch and communicate with us frequently on forecast!

No change in prioritizing protection of our staff and keeping our customers’ businesses running. BCP‘s are in place and monitored around the world with dedicated guidelines and preventive measures, e.g. social distancing, temperature control or placement of sanitizing stations.

  • Europe 

(Jun 2, 2020) - There are no significant updates in status from the previous advisory. All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific 

(Jun 2, 2020) - There are no significant updates in operational status from the previous advisory.

All Schenker warehouses in India are now open, though Mumbai continues to be in lock-down till end of June.

Japan has lifted the State of Emergency in all prefectures.

In Thailand, restrictions are also easing, all warehouses are open.

Singapore announced gradual and phased easing of restrictions from June 2.

The Philippines now ease restrictions to General Community Quarantine (GCQ) status as of June 1.

Greater China North East Area of Jilin is experiencing a renewed outbreak. Our operations in the area remain open and unaffected but placed on high alert and will be monitored closely.

Malaysia CMCO (Conditional Movement Control) extended until June 8. All Warehouse operations back online, albeit some with reduced resources (limited) and under strict hygiene SOP.

Australia and NZ have eased restrictions.

Vietnam is virtually back to normal. Indonesia is also easing some restrictions even though cases are up. The situation in Indonesia will be monitored closely.

Myanmar government has initiated stop work order for factories (and other) operations until approval to re-open.

India authorities adjusted restrictions in states via Red, Yellow and Green Zones to calibrate extent and enforcement of measures (please refer to our India website for detailed information via download).

With different countries at varying status, even at provincial / prefecture levels, we are closely monitoring all our markets and, where appropriate, also taking the pre-emptive steps planning for recovery and resumption incrementally or in phases.

While governmental imposed restrictions in all APAC countries continue, our service levels are maintained so far to serve our customers.

  • Middle East/Africa 

(Jun 2, 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 

(Jun 2, 2020) -

➢ USA: As the country reopens, DB Schenker is following the guidelines of each individual state to prepare ramp up processes. The health and safety of our employees and their families remain our highest priority. Leadership continue to reinforce discipline to protocol, educating employees on social distancing and use of sanitary products in public and at home.
➢ Canada: Government is sporadically communicating restart of certain industries for businesses that have a store front (curb-side pickup). Ontario and BC in Phase 1 of re-opening businesses. DB Schenker follows the applicable social distancing requirement.
➢ Mexico: Operating per government mandate; we have implemented social distancing guidelines in all facilities and ensuring all safety measures are taken to protect employees and operation.
➢ Peru: The national state of emergency in Peru has been extended until June 30 (inclusive).

  • Global Projects & Industry Solutions

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

DB Schenker is in constant contact and regular exchange with carriers and operators of multi-purpose vessels (MPP). Bookings can be placed for break bulk, out-of-gauge cargo, but also for cargo types, which are normally transported containerized as break bulk shipping capacity is widely available. Some operational delays are expected following various lockdowns and restrictions announced and 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 customized 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

(Jun 2, 2020) - There are no significant updates in status from the previous advisory.

The outlook in the global exhibition industry is improving. More and more countries are lifting their bans on organizing trade fairs and all major exhibition organizers are getting ready for the industry to restart. We are in close contact with the leading exhibition organizers and associations worldwide and continue to monitor all developments closely.

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 June 9 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 – May 26, 2020

COVID-19 Customer Advisory Global Update – May 19, 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.