To date, there are no reports of Coronavirus infections among the DB Schenker workforce. Precautionary measures are in place for all our sites and offices. We continue to enforce strict discipline in self-quarantine, temperature checks and monitoring efforts, as well as maintaining a sanitized workplace for employees. We urge all stakeholders to be vigilant and elevated hygiene practices.
Almost all DB Schenker offices in Greater China will resume work on Feb 10, with the exception of the offices in Tianjin, Wuhan and Zhengzhou, which will follow regulations from the local authorities’ to extend the postponement of work.
Apart from the mandatory 14-day quarantine requirement for people returning to work from Hubei Province, local authorities have imposed stricter quarantine requirements on external population returning to work from provinces outside of Hubei and could be subjected to 7 – 14 days of self-quarantine. We foresee that staff capacity recovery, especially for our blue-collar workforce may potentially be impacted, but is still manageable in the week of Feb 10.
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 to customer demands.
Below are the market updates as at Feb 7. Following the resumption of work from Feb 10, we anticipate there will be further changes as we continue to monitor and adapt to the situation on site.
- Air: Capacity is heavily impacted out of China for the next week. The market is missing a total of around 4000 Tons of capacity per day.
DB Schenker in Greater China is ready to support your shipping needs based on available capacity on our allotments / flight operations in / out of China. To do so, we need to receive as many details as necessary, such as cargo readiness / shipment details / destination and required arrival time. Our specialists will work to provide the best possible solution.
- Ocean: In the week of Feb 10, carriers have reduced 55% capacity to Europe and 30% capacity to U.S, via blank sailing program.
Majority of CFS in mainland China remain NON-operational until Feb 9. Due to additional blank sailings, carriers will undoubtedly have capacity crunch and equipment shortage challenges starting March onwards from Europe major ports to China. GRI or PSS on Europe Eastbound are expected from March 1st.
In the week of Feb 10, carriers offices including Maersk, CMA, Hapag, ONE will continue with ‘working from home’ policy. However, operations are not expected to be impacted.
- Land transport: General forecast for the week of Feb 10
Domestic trucking resource shortage of up to 70% driver shortage due to the 14 days home quarantine policy; More than 80% of logistics parks of mainland China will remain closed until Feb 10;
LANDbridge cross border trucking port closed or under strict limitations i.e. Pingxiang, Khorgos.
- Multimodal Solutions (China Europe Rail): West-bound train departures delayed to the week of Feb 17.
East-bound train arrival with high risk of delay on-carriage due to lack of resources and road restrictions. (Certain province/city limited to only local trucks being allowed entry).
Rail container yards Shanghai, Shenzhen, Chongqing remain closed until Feb 10 or up to further notice.
Capacities for pre+oncarriage/trucking in China are massively decreased to 10-30% due to truck driver shortage for next two weeks, while alternative solutions are explored.
Chinese border crossing stations with Russia, Mongolia and Kazakhstan are open for cargo trains without any issues.
A surge in demand is expected when factories re-open next week in different Areas with anticipated resource shortage, leading to higher cost of domestic trucking.
- Contract Logistics: Generally, all our warehouse operations will resume in the week of Feb 10 with approximately 75% workforce capacity due to further restrictions and strict quarantine procedures imposed by local authorities.
In some provinces/municipalities, local authorities require companies to submit application to resume work on 10 Feb, and we have filed the applications as required.