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Customer Advisory COVID-19

Since the COVID-19 virus has spread, we have extended our COVID-19 customer update. We have compiled and aggregated facts and figures across all business areas as well as covering all regions. Please continue to be engaged with your account managers on your latest plans, prices and projections. We continue to make every effort to support your business.


Global Market Updates

  • Market update and major operational impact in China East Area (including Shanghai): Business disruption: High impact on operations COVID-19 current state

→ Lockdown in Shanghai continues, all staff working from home. Kunshan lifted citywide lockdown; ‘closed loop management’ is required when enterprises resume operations.
→ Key industrial enterprises in Shanghai resume operations gradually, with ‘closed loop management’ in effect. So far there is no significant improvements in the transportation sector.

  • Impact on service operation

→ In general, all operations in lockdown cities are suspended. The traffic restriction measures released by the other regions in Area East are getting stricter and are adjusted frequently. All products (incl. precarriage, on-carriage, as well as domestic transport and international land bridge) are impacted and delays are expected.
→ Ocean: SHA Port is operating under reduced efficiency due to manpower shortage, with reefer plugs and dangerous goods storage space still constrained. Terminal warehouses resume operations gradually at reduced capacity. Cross-province trucking service remains bottle-necked.
→ Air: Highways connected with PVG airport have reopened gradually, and terminal operations resumes with ‘closed loop management’ in effect. Warehouses are full and severely constrained to receive any cargo, and truck resources are limited.
→ Land: Truck & driver resources have recovered slightly. Restriction policy published by local authorities differ from city to city. Market capacity in Kunshan, Suzhou and Wuxi constrained heavily.
→ CL: All the Warehouses in Shanghai and Kunshan resume operation with ‘closed loop management’ in effect, to support urgent pickup from customers.

  • Market updates and major operational impact in China South area (including Hong Kong SAR)

→ COVID-19 cases in Hong Kong SAR dropped significantly. Several areas locked down in Nanchang, with office staff working from home. Some logistics parks in Nanchang were closed, which impacted pickup and delivery.

  • Market updates and major operational impact in China North area

→ Most of the factories in Changchun and Jilin city resume operations from May 7 with COVID-19 control measures imposed. Overall productivity ramp up to 70 - 80%. Changchun staff continues to working from home.
→ DB Schenker office in Shenyang back to office work.
→ COVID-19 cases in Beijing continue to increase with some impact on public transportation resulting in temporary closure.
→ Beijing office switch to BCP from May 9; all staff working from home.

Should there be any specific account operational effects, updates will be provided to our DB Schenker Account Management teams where necessary. We recommend staying in close contact with your DB Schenker Account Managers for any further details or further support if necessary.

  • Global

(May 10, 2022) - The airfreight market and dynamics remain volatile and fragile due to the impact the COVID-19 policies and the ongoing war in the Ukraine.

Although the full lockdown in many Chinese ports is slowly easing, the overall situation remains challenging.

All major ports in China are facing extreme backlogs of import cargo. Some good news is that the main ports are again starting to accept transit cargo to Shanghai (PVG) and the embargo (45 tons max for airlines) in Zhengzhou (CGO) have been lifted. Around 600 factories have been granted permission to reopen, but the start of production is extremely slow due to the shortage of staff (closed loop conditions) and imported material which are stuck at the various ports due to the backlogs.

The border from China to Hong Kong is still closed. The Chinese authorities implemented a corridor which is in place mainly for relief goods and medical supplies. DB Schenker has managed to secure a daily allowance of 10 trucks to cross from China to Hong Kong. It is still highly recommended to use barge services as an alternative solution.

Jet fuel prices have reached the highest level since Apr 2011. Jet fuel price average for 2022 (year to date) is at $132.3 / bbl (US dollars per barrel). On May 6, jet fuel prices were 146.6% more vs 1 year ago.

Our DB Schenker own controlled network includes flights on following routes:

Flight Operation services currently face disruptions according to the latest bans on air space and COVID-19 restrictions, hence adjustments to the flight schedule are unavoidable.

→ Fueled with SAF: Frankfurt (FRA) – Shanghai (PVG) – Frankfurt (FRA)
→ Bangalore (BLR) – Munich (MUC) – Chicago (RFD) – Munich (MUC) – Doha (DOH)
(plus onforwarding via scheduled flights from DOH to BLR, BOM, MAA, DEL, JNB; ETA on-forwarding destinations expected within 24 - 48 hours)
→ Beijing (PEK) – Munich (MUC)
→ Chicago (ORD / RFD) – Seoul (ICN) – Shanghai (PVG) – Chicago (RFD)
(Note: Single flights might be routed into HKG instead of PVG)
→ Chicago (ORD) – Sao Paulo (GRU)
→ Detroit (DTW) – Shanghai (PVG)
(Note: Cargo transitioned in DTW / RFS from ORD to DTW)
→ Frankfurt (FRA) – Beijing (PEK)
→ Frankfurt (FRA) – Mumbai (BOM) – Frankfurt (FRA) – Atlanta (ATL) – Frankfurt (FRA)
→ Frankfurt (FRA) – Chicago (ORD / RFD) – Frankfurt (FRA)
→ Frankfurt (FRA) – Shanghai (PVG)
→ Frankfurt (HHN) – Shanghai (PVG) – Frankfurt (HHN)
→ Frankfurt (FRA / HHN) – Zhengzhou (CGO)
→ Hongkong (HKG) – Chicago (RFD) – Luxembourg (LUX)
→ Hongkong (HKG) – Munich (MUC)
→ Liege (LGG) – Shanghai (PVG) – Luxembourg (LUX)
(Note: This includes trucking to / from CGO – PVG / PVG – CGO)
→ Luxembourg (LUX) – Indianapolis (IND) – Luxembourg (LUX)
→ Miami (MIA) – Campinas (VCP)
→ Munich (MUC) – Beijing (PEK)
→ Munich (MUC) – Shanghai (PVG)
→ Munich (MUC) – Zhengzhou (CGO)
→ Shanghai (PVG) – Chicago (ORD)
→ Shanghai (PVG) – Frankfurt (FRA)
→ Shanghai (PVG) – Munich (MUC)
→ Shanghai (PVG) – Singapore (SIN) – Sydney (SYD)
→ Taipei (TPE) – Chicago (ORD)
→ Zhengzhou (CGO) – Frankfurt (HHN)
→ Zhengzhou (CGO) – Amsterdam (AMS)

Career Capacity Development 1-12/2020

More detailed information on this new flight schedule can be found by clicking here.

  • Europe 

(May 10, 2022) - All offices remain in full operation with access to terminal handling and ground transportation. Operationally, our linehauls to and from the hubs are running as scheduled. Please get in touch with your DB Schenker Account Manager if there are implication by the war in Ukraine for more information.

  • Asia Pacific 

(May 10, 2022) - Further to the market situation update as highlighted within Global Air Freight section of this advisory, the following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

Greater China Cluster

China East area: As already highlighted in the Market Update Spotlight

China South area (including Hong Kong SAR):
→ After requirement on crew quarantine was modified in HK, more cargo flights will progressively resume from May onwards. COVID-19 cases detected at Guangzhou airport and most airlines cancelled their flights due to the shortage of manpower.

It also resulted in terminal congestion in Guangzhou airport. Export terminal will require 3 days additional time and import terminal cargo availability will take 5 - 7 days after arrival. Congestion in Shenzhen airport import terminal due to surge in volume, estimate backlog at 2,000 tons and import terminal cargo availability will take 5 - 7 days after arrival.

China North area:
Operation for both import and export in BJS slowed down due to COVID-19 impact. COVID-19 restriction in CGO airport area was lifted from May 4. Backlog situation of CGO import have improved.

Rest of Asia
→ No major operational changes or updates from previous advisory for ANZ and India Sub-continent clusters.
→ Staffing availability within the air freight and general transport sectors, including airport cargo terminal operations are contributing to the extended total transit time of freight.
→ COVID-19 situation in China resulting in city-wide lockdowns will likely cause a ripple effect on multiple trade lanes, as trucking and cargo handling capacities due to workforce availability are being impacted at major China hubs in Area South and East.
→ The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to sanctions imposed and compliance requirements.

No significant changes for South East Asia and North East Asia Cluster countries. For questions about local air freight operations and possible disruptions, please get in touch with your DB Schenker Account Manager.

COVID-19 variants still pose a clear and present risk for operational disruptions in our network. Our approach remains unchanged with priority focusing on the health and safety of our workforce as well as remaining vigilant in monitoring the situation to mitigate risk and events with potential impact to operations in all our APAC countries. In addition, the war in Ukraine will also be expected to have both a direct and indirect impact on operations and business in the near term, with trade compliance and sanctions coming into effect.

Should there be any specific account operational effects, updates will be provided to our DB Schenker Account Management teams where necessary. We recommend being in close contact with your DB Schenker Account Managers for any further details.

Our air freight operations remain available to support customer needs. Control measures remain in effect. Delays may be expected. Alternatives to transport cargo via other routes are being established and stop-gap measures for labor shortages are being deployed where necessary. Customers may contact the respective DB Schenker representatives for support or solutions.

Capacity is expected to remain volatile. Do refer to our Global Flight Network’s additional scheduled charter services for more solutions that can meet your needs.

→ To receive APAC daily customer advisories in your mailbox, please subscribe here.

  • Middle East / Africa 

(May 10, 2022) - Overall, DB Schenker’s air freight operations in the countries remain uninterrupted and we continue to serve our customers. For more detailed market updates related to Middle East and Africa, please click here (PDF).

Situation

Country

No operational restrictions for air cargo business

Angola, Bahrain, Egypt, Kenya, Namibia, Mozambique, Oman, Qatar, South Africa, Saudi Arabia, UAE

  • Americas 

(May 11, 2022) - Challenges continue for most trade-lanes from the Americas. Staffing shortages & continuing COVID-19 infections continue to affect carrier operations, airport terminal cargo handling, and trucking services. The war in the Ukraine and its effects, along with the strong COVID-19 mitigation efforts in China all combine to create a difficult market environment for transport. USA airport terminals continue to be congested. Processing of cargo have shown some improvements in the major gateway cities, but still slow and hampered by long waiting times for pickup and delivery of cargo. This is less of a problem in Canada and most of the Latin American countries with exceptions: Brazil where Sao Paulo airports are effected by on-going customs strike (slowdown) creating some terminal congestion effecting both imports and exports in the transition of cargo. In Mexico, the previous weeks of high temperatures that caused passenger carriers to be weight restricted seems to improving.

Specific to the USA, the market labor situation in hiring of personnel is still a challenge impacted by shortages. The overall terminal warehouse congestion continues to be difficult and creating delays in processing cargo with resulting effects on transit times and on time performance. Shortage of truck drivers and long lines at airports for pick-up or delivery cargo has created further problems with no multiple stop deliveries by individual trucks possible with a need for a separate truck per airline due to waiting times. Relative to market demand vs capacity developments, the trans-Atlantic, and intra-Americas trade lanes have seen some improvement but still in high demand. The trans-Pacific trade lanes remain critical, as are movements to India.

The war in Ukraine and COVID-19 related lockdowns in China affect entire cities. To China flight schedules change, and at times flights are cancelled. Initially this was affecting mainly PVG, but has spread to other cities. Disruptions effecting as well trucking services and creating warehouse congestion adding to the general disruption in transport movements throughout the country. DB Schenker charter operations are in heavy use, as is our expansive ‘flight operations’ network covering routes trans-Atlantic, trans-Pacific and intra-Americas, providing secure capacity for our customers, but as well effected on the transpacific routes into China by the city lockdowns.

Americas exports by trade-lane:

USA – Europe
→ Market demand for airfreight capacity remains strong but with the slow re-introduction of scheduled passenger services helping the situation, but return of this capacity is still far behind pre-COVID-19 levels. DB Schenker’s own scheduled flight operations is supporting our customer’s needs. Flight operations: Weekly 747 freighter flights from Chicago, Rockford, Indianapolis and Atlanta to Frankfurt, Munich and Luxemburg, offer DB Schenker customers a stable and secure access to capacity.

USA – Asia (excluding China)
→ Capacity remains tight but on most trade lanes with critical situations remaining with destinations in Australia, Singapore and India. DB Schenker has in place large block space agreements to support these destinations from its key USA Gateways. Supporting India, there are connection with our flight operations via our European hub and their flight operations to destinations there.

USA – China Specific
→ Chinese governmental protocols for combating COVID-19 have led to city ‘shut downs’ that have caused flight cancelations into key destinations. Aside from the transit delays, airport terminals have become heavily congested at both origin and destination with materials for these closed destinations. As well where operations exist reduced staffing at destination affect the amount of cargo that can be processed resulting at times limitations of cargo on board flights. Loss of carrier capacity relative to the war in Ukraine is impacting the trade lane in general, as is limitations (COVID-19 related) in cross-border movements and other RFS (road feeder) services between cities. DB Schenker as part of its own controlled flight network has 747 freighter flights from ORD / RFD to China, supporting capacity needs, as well as arranging ad hoc charter movements for our customers.

USA – Latin Am / Latin Am to Europe and APAC
→ Intra-Americas: Capacity is in strong demand, but with some easing of backlogs. Challenges related to freighter carriers schedule fluctuations continue but are improving. Passenger aircraft movements as well slowly growing supporting capacity demand. On the critical Miami to Sao Paulo trade lane, DB Schenker is maintaining weekly DB Schenker controlled flight operations from ORD to GRU, as well as from MIA to VCP. Airport terminals in general operating relatively well with transitioning cargo, but with congestion causing some delays in receiving and delivery at airport terminals. Specific to Brazil, where Sao Paulo is being affected by a customs strike, heavy delays occur if any irregularities are encountered at the times of customs processing.

→ Latin Am Exports: North American, intra-Americas and European destination capacity continues to be tight. Destinations in China and India also continue to be a challenge.

USA / Latin Am to Middle East / Africa
→ South Africa with continued strong market demand and shortage of capacity; our flight operation network offers connections via our European hub.

  • Global

(May 10, 2022) - Global Supply and demand appear more balanced in the forecast for the remainder of 2022; current idle fleet is around 0.8%, however the gigantic order book for 2023 is misleading. A significant amount of capacity is tied up in congestion around the world, preparations for the IMO 2023 regulations will add to this and will rather lead to a deficit on the supply side.

For the main trades ex China / Sha it is anticipated that the lock down in Shanghai will come to an ease. Coupled with an expected pre peak rush, the trades outbound ex Asia will become tighter over the next weeks and over Summer. While retail volumes found its flows also during the past weeks ex China, it is mainly automotive, electronics and high-tech that it expected to pick up again. This development will likely result into equipment bottlenecks and in consequence will lead towards increasing rate levels.

On the other side, we expect back haul trades (i.e. trades that mainly reposition equipment back into Asia) remain sluggish and volatile on rates.

Currently, the war in Ukraine has a direct impact of 1.3% of the global container trade. Also the lockdown in the largest port Shanghai / China continue to affect the market. The forecasted market demand has been adjusted downwards from plus 5.9% to 4.9% while the newbuilding capacity will increase from initially 4.1 to 4.2%. In line with this adjusted outlook, global container trade grew by plus 4.7% in Jan 2022. Trades ex Asia Pacific grew fastest in relative terms, while the US accounted for the largest year-on-year change in import volumes. Dominating commodities have been raw materials and consumer goods. Strongest trades: Asia to Europe at a plus 22%, Asia to Latam plus 16%, Asia to North America plus 8%, exports Asia to Middle East / Africa plus 9% and finally intra-Asia plus 6%. Weakest trades have been all trades outbound North America as well as outbound Europe, especially to the Eastern Hemisphere.

As in 2021, the scheduled new building capacity will effectively decrease due to continuous port congestion as well as natural delays from the shipping yard.

With effect of 2023, carriers, i.e. vessels owners and operators, have to comply with IMO 2023 regulations mandatorily: The Carbon intensity of all ships to be cut by at least 40% by 2030, by at least 70% by 2050. A combination of technical and operational approaches will improve the energy efficiency of ships. The calculation of Energy Efficiency Existing Ship Index (EEXI) is mandatory; all vessels above 5,000 gt to establish their annual operational carbon intensity indicator (CII) and CII rating.

CII target reinforcement 2% per year from 2023 to 2026 ≥ 2% after 2026

  • EEXI (Energy Efficiency Existing Ship Index): This simple index is based on vessel design, engine power and speed limitation. There can be no compromise: Each vessel will be either compliant or noncompliant. For chartered vessels, EEXI compliance is the shipowner’s responsibility.
  • CII (Carbon Intensity Index): Each vessel will be subject to a yearly ranking regarding her Carbon Intensity Index: Only vessels ranked A, B or C will be compliant.

There are different methods to ensure compliance. Optimizing and limiting energy consumption through reduced speed is the most common solution.

Compliance with IMO's GHG strategy graphic

Source (graphic left): Hapag-Lloyd. Source (graphic right): IMO

Compliance with IMO's GHG strategy graphic
Source (graphic left): Hapag-Lloyd. Source (graphic right): IMO

Also because of the IMO 2023 introduction and its consequences on speed reductions which will tie-up vessels, it is expected that for all main trades, market rates are expected to stay high. Carriers focus on FAK and Premium segments and continue to play the market to their advantage.

Additional cost impact comes from a significant rise of fuel prices which will find its reflection in the rates with effect from April.

We strongly recommend most accurate forecasts for optimal allocation and uplift planning as well as preventing infrastructure bottlenecks (related to availability of truck, rail, barge power, but also equipment).

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

Coupled with the ongoing congestion in the main regions and the missing upgrade of infrastructure, the actual delta on demand and supply remains highly in favor of the demand. In consequence, the current high-rate level scenario is to remain in place throughout the entire year to come. Further tightening on supply and hence increasing the delta towards demand is expected from the IMO 2023 regulation addressing the carbon emissions of every vessel.

With an uncertain outlook on vessel utilization and partly huge impacts on port terminals, we need to prepare for changing schedules and transit times, sudden / unexpected delays in uplift, increased bottlenecks of equipment availability, inconsistent departures and sudden surcharges possibly resulting in higher costs for the supply chain.

Our experts in Ocean will support and guide for
→ SchenkerOcean strategic carrier partnerships to ensure access to equipment and space on all trades.
→ Volume forecast and allocation planning: through access to volumes on all alliances and consultative volume planning (allocation match based on customer forecast) we ensure proper prioritization.
→ Conversion from SchenkerOcean FCL to LCL to ensure uplift of faster required part loads.
→ Resilient and sustainable shipping possibilities through mixed SchenkerOcean carrier portfolio.
→ Various cargo storage options (using own or contracted warehouses and store goods accordingly to ease the rush of cargo at the same time).
→ Use of inhouse options for airfreight, rail freight and combined modes of transport options.
→ Alternate FCL shipping options via breakbulk (on multipurpose vessels).

  • Europe

(May 10, 2022) - All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(May 10, 2022) - Further to the market situation update as highlighted within Global Ocean Freight section of this advisory, the following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

Greater China Cluster

China East Area (including Shanghai): As already highlighted in Market Update Spotlight

China South area (including Hong Kong SAR): Shekou Port keeps gate-in policy as ETD minus 4 days. Sea ports and CFS warehouse operations run normally, but cross border truck between HKG / Guangdong still encountering difficulties. All satellite warehouse (incl. Zhongshan), Huizhou warehouse. SZX Ocean LCL warehouse Li hang progressively recovering capacity.

China North area: In land pickup / delivery in Changchun, Jilin, Langfang, Weihai and Weifang are still restricted.

Rest of Asia
→ No major operational changes or updates from previous advisory on COVID-19 impact for ANZ and India Sub-continent Clusters.
→ There are still service disruptions to the local ocean freight market including terminal congestion and competition to secure vehicle booking slots.
→ COVID-19 situation in China resulting in city wide lockdowns will have a ripple effect on multiple trade lanes, as trucking and cargo handling capacities due to workforce availability are being impacted at major China ports in Area South and East.
→ The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to mode conversions from Air and Land, as well as from sanctions imposed and compliance requirements.

No major updates for South East Asia and North East Asia Cluster countries.

Equipment shortage continues to put pressure on the ocean freight operations. Alternative, multimodal, options are available to circumvent. Speak with your DB Schenker contact person about the options available. COVID-19 variants still pose a clear and present risk for operational disruptions in our network. DB Schenker’s approach remains unchanged with priority focusing on the health and safety of our workforce, as well as remaining vigilant in monitoring the situation to mitigate risk and events with potential impact to operations in all our APAC countries. In addition, the war in Ukraine will also be expected to have both direct and indirect impact on operations and business in the near term, with trade compliance and sanctions coming into effect.

Our Ocean operations continue to be available to support customer needs. Delays could be expected in customs clearance and transportation. Stop-gap measures will be deployed where necessary.

→ Do reach out to your respective DB Schenker representatives for support or solutions where required.

To receive APAC daily customer advisories in your mailbox, please subscribe here.

  • Middle East/Africa 

(May 10, 2022) - DB Schenker is fully operational and available to manage the current demand from customers even though an equipment shortage has been seen in the region. For more detailed market updates related to Middle East and Africa, please click here (PDF).

  • Americas 

(Apr 13, 2022) - A lot of pressure still ex South America for all outbound trades: Tight equipment, in particular on the East Coast of South America, overly full ships. Pressure on allocation and equipment availability will continue in the coming weeks. Increased market demand for main commodities will continue, depending on the rate exchange which so far is looming a positive trend for exports in coming months.

  • Global

(May 10, 2022) - Europe Land is fully operational and available for business, managing few existing COVID-19 constraints in European countries. 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 to Southeast Asia) as well as Eurasia Landbridge (China – Europe Train) are fully operating, although facing congestions. Land operations in the Americas are also showing constraints, but still working close to normal.

  • Europe 

(May 10, 2022) - Few restrictions to contain the COVID-19 pandemic are still established in some European countries, directly or indirectly affecting transportation. Spread of the Omicron variant is visible in many European countries, but most countries are softening measures and restrictions DB Schenker Land Transport monitors the situation closely and reacts specially to border situations due to regulations imposed by individual 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 addition, we are adapting our transport service offerings daily to the needs of our customers

Are you up-scaling or down-scaling your business activity in response to the changing market environment? DB Schenker Land Transport is your partner with one of the strongest and most resilient networks across 40 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.

Find the latest European Land Transport updates here.

  • Asia Pacific 

(May 10, 2022) Eurasia rail service will continue to be provided

DB Schenker has aligned with all Chinese train operators and overseas carriers, that CR Express will continue to provide Eurasia rail service. The service booked with DB Schenker, through below routes currently are running as usual, and future schedule has been published.

→ Departure situation: No delays
→ Booking closed: WB for week 19 | EB for week 19

Current equipment situation by region

→ East China region: Low shortage risk
→ North China region: Low shortage risk
→ South China region: Low shortage risk

Terminal / depot situation in Europe, like Duisburg and Hamburg are improving. The capacity of container releasing/return is back to normal.

*Impacted by the outbreak of Omicron, the empty pickup and return from / to risk areas will be on a case by case basis.

Border Situation

Overall border crossing lead time is improved

Alashankou / Khorgos operates smoothly. As well as in European side both Malaszewicze and Kaliningrad are now having short border crossing lead time in parallel. According to GPS record, the reloading operation at PL / BY border are running as normal.

Border delays

→ CN / KZ Border: Alashankou / Khorgos border 0 - 4 days
→ CN / MN Border: Erlian border 7+ days
→ CN / RU Border: Manzhouli border 7+ days
→ BY / PL Border: Mala / Brest border 2 - 3 days
→ RU / DE Border: Kaliningrad / Rostock border

Good lead time performance

GPS trackers installed in containers reported nothing abnormal so far (from Feb 24 to May 9). Eurasia trains are moving on schedule crossing Russia, Belarus and Poland. The current T / T lead-time for Westbound maintains its good performance. Similar to last year, the best lead time performance starts from February. To Mala is 10 - 16 days, to Rostock is 18 - 22 days, to Duisburg / Hamburg + 3 - 7 days upon border released. And dependent on terminal capacity. Extreme delay may happen to some trains because of the dwell time. The leadtime for Eastbound is at 20 - 25 days (improved).

Asia Landbridge: Emergency News

Since the reopening of Dongxing border on Apr 26, about 200+ trucks are stranded. Dongxing border is undergoing clearance with target completion of backlog extended to May 18.

For current 600+ trucks in Pingxiang, the throughput capacity maintains at 80 to 100 trucks per day into Vietnam Huu Nghi border.

Throughput from Vietnam into China via Pingxiang road has improved from 30 to 50 trucks per day.

Shanghai lockdown updates – 2nd batch of Shanghai companies have been approved to resumed for production.

Seasonal monsoon (May 2022)

Raining season is seen transitioning for May 2022 onwards for the usual Landbridge routing along Thailand and Malaysia and we are closely monitoring the flooding situation.

Malaysia rain forecast May 2022: Average rainfall for Northern Malaysia (Perak until Northern Selangor) – 100 to 350 mm, Central Malaysia (Southern Selangor, Kuala Lumpur until Melaka) & Southern Malaysia (Johor) – 100 to 210 mm.

Thailand rain forecast May 2022: May is the transitional period from summer to the rainy seasons with frequent thunder rainstorms and summer thunderstorms occur in the major parts of Thailand.

Asia Landbridge

Latest news: Border gateways observations – May 10 2022
Border Gateway observations

General APAC Region SITREP

Greater China Cluster

China East Area (including Shanghai): As already highlighted in Market Update Spotlight

China South area (including Hong Kong SAR): Low capacity on Southeast Asia truck, with priority on sanitizing backlog trucks. For new bookings, border waiting time will be over 15 days, and for urgent bookings, it will need to be checked on case-by-case basis. For domestic truck business, trucks and drivers from lockdown cities are not allowed for pickup and delivery, but for other cities situation is almost back to normal operations.

China North area: Only vehicles used for pandemic control measures, emergency medical services, security, urban operation and emergency response are permitted on the roads in lockdown cities after obtaining official approval. Trucks and drivers from above mentioned lockdown cities are not allowed to enter Beijing.

Rest of Asia
→ No major changes from previous updates for ANZ and India Sub-continent Clusters. Temporary strains may persists on staffing resources. Though COVID-19 containment measures are easing, and operations are running smoothly for PAN India.
→ The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to mode conversions from Air, as well as from sanctions imposed and compliance requirements.

No major updates for South East Asia and North East Asia Cluster countries.

COVID-19 variants still pose a clear and present risk for operational disruptions in our network. Our approach remains unchanged with priority focusing on the health and safety of our workforce, as well as remaining vigilant in monitoring the situation to mitigate risk and events with potential impact to operations in all our APAC countries. In addition, the war in Ukraine will also be expected to have both direct and indirect impact on operations and business in the near term, with trade compliance and sanctions coming into effect.

  • Middle East/Africa 

(May 10, 2022) - The overall disruptions in the global supply chain have particularly impacted trucking companies in the region - for example, with the border closure, restriction of drivers, and increase in the fuel price. Such situations have created a supply / demand imbalance leading to price fluctuation. DB Schenker is continuously working to meet customer needs by adding more capacity and offering cost-effective multimodal solutions which provide a faster transit time. For more information on our specific solutions for your business, please get in touch with us at info.mea@dbschenker.com.

South Africa: Port of Durban remains impacted with limited movement due to the flooding at Kwa-Zulu Natal. In the SADC (Southern African Development Community) countries, expect delays for cross-border and road freight due to protests and forecasted landslides. Additionally, the cost of fuel has increased drastically in the country due to the situation in Ukraine.

Egypt: Chamber of Commerce's Currency Exchange Department reported an increase in dollar sales, pushing up the cost of spare parts and tires, oil lubricants, as well as driver compensation.

Saudi Arabia: The government has revised regulations on truckage leading to a reduction in truck availability.

  • Americas

(May 10, 2022) -
→ USA: Carriers are operating as normal. There is very little impact to customers.

  • Global

(May 11, 2022) -  While situation stays volatile, especially in China, we see decreasing restrictions in Europe, Americas and MEA. Our operations and customer services remain stable, there is no change in monitoring the situation in all regions very closely to remain agile.

We continue prioritizing the protection of our staff and having dedicated labor management in place, to keep our customers’ businesses running. So do we continue to focus on dedicated guidelines and preventive measures with respective and individual BCP’s in place.

For short-term support we keep up our customer service offering on short note:

→ In case you need temporary space, or any additional services, reach out to your DB Schenker Account Manager or local contact person!

  • Europe

(May 11, 2022) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific

(May 11, 2022) - The following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

Greater China Cluster

China East Area (including Shanghai): As already highlighted in Market Updates Spotlight

China South area (including Hong Kong SAR): All sites operate as normal. Operations in HKG are close to normal productivity in all sites.

China North area: Some warehouses in lockdown areas resume operation with ‘closed loop management’ measures in effect to support urgent pickup from customers. Operations in some warehouses in Beijing are impacted due to COVID-19 control measures imposed.

Rest of Asia

→ There are no major changes from previous updates. Temporary strains on staffing resources might persist for ANZ.
→ Operations at our sites for India Sub-continent Cluster is running smoothly, ensuring all COVID-19 safety protocols, sanitization, and hygiene of areas.

No major updates for operations in South East Asia and North East Asia Cluster countries.

COVID-19 variants still pose a clear and present risk for operational disruptions in our network. Our approach remains unchanged with priority focusing on the health and safety of our workforce, as well as remaining vigilant in monitoring the situation to mitigate risk and events with potential impact to operations in all our APAC countries. In addition, the war in Ukraine will also be expected to have both direct and indirect impact on operations and business in the near term, with trade compliance and sanctions coming into effect.

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 prevailing customer needs, in compliance with local regulatory requirements. Delays may be expected due to availability of workforce and enforced hygiene and monitoring SOPs.

Should there be any specific account operational effects, updates will be provided to our DB Schenker Account Management teams where necessary. We recommend being in close contact with your DB Schenker Account Managers for any further details or further support if necessary.

→ For India, please refer to our India website for detailed information via download.
→ For most recent updates on Australia, please refer to our Australia website.
→ To receive APAC daily customer advisories in your mailbox, please subscribe here.

  • Middle East/Africa 

(Apr 27, 2022) - All DB Schenker contract logistics facilities in MEA are operational as per the appropriate health and safety standards and other regulations levied by the local government.

  • Americas

(May 11, 2022) - Our Contract Logistics operations continue to operate with proactive measures for the health and safety of our team and sites in general while we keep up with our customers’ business standards. At a country level, recent changes due to the pandemic are stabilizing although we continue to closely monitor the situation daily. Mask mandates are reduced / eliminated depending on local / country legislation.

→ USA: All operations in the USA remain operational with precautionary measures in place for the health of our people and delivery of services to our clients. We see minimal business disruptions as a result of COVID-19 absenteeism at this stage, but we caution, and precautionary measures remain in place.
→ Mexico: All Contract Logistics sites in Mexico remain operational. COVID-19 numbers are normalizing hence now have a low absenteeism rate and yet we are doing as much as possible to minimize the impact to our personnel and facilities
→ Canada: All Contract Logistics sites in Canada remain operational with health and safety measures in place for the safety of our associates and customers. Measures / restrictions have eased based on federal mandates. All sites remain operational, compliant, and managing labor constraints effectively.
→ Brazil: All Contract Logistics sites remain operational in Brazil. Measures to reduce the risk of contamination continue to be the standard while adhering to public and company health and safety measures.

DB Schenker Organizational Update

DB Schenker is closely monitoring the COVID-19 developments globally. In our locations across all continents, we have taken action to protect our employees, customers and business. Implementation of strict safety and hygiene measures, such as extended mobile office arrangements, continuation of common preventative / mitigation measures, various vaccination or test offers, is given. Depending on regionally deviating pandemic situation, adequate procedures are established and adjusted based on need to ensure the continuation of business.

The next customer advisory will be the May 25, 2022 release or earlier should there be significant developments. 

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

COVID-19 Customer Advisory Global Update – April 27, 2022
COVID-19 Customer Advisory Global Update – April 13, 2022

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.