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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.


Market Updates

  • Europe 

(Apr 03, 2020)

Several European countries imposed nationwide travel restrictions. The government restrictions do apply mostly for private travel only. Transportation of all goods by DB Schenker is not restricted by this measure for most of the countries. For potential exceptions (e.g. blockage of cargo), please refer to the info graphic above. For each of these exceptions, we are in close contact with local authorities and are working on solutions to ensure flows of cargo as much as possible.

For cases of disruptive conditions, such as the current COVID-19, DB Schenker Land Europe builds on predefined contingency plans further specified to the respective situation. Appropriate actions as well as defined functional and geographical responsibilities apply to each scenario to be able to react quickly and effectively.

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, we ask for your understanding that, 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 due to the fast spread of the Coronavirus, we ask all shippers to check the delivery possibility with the consignee and hold back shipments in case it is known that they cannot be delivered. DB Schenker reserves the right to send back shipments that cannot be delivered due to the reasons mentioned above and charge the return to the shipper accordingly or charge for shipments that need to be stored in our warehouse after the first delivery attempt failed due to receivers.
 

  • Asia Pacific 

(Mar 30, 2020) - For India, land transport is functioning at 20 – 25 % capacity (across FTL, LTL & FCL). Drivers are facing a challenging environment, being subject to possible penalties and seizure of vehicles from the authorities due to documentation or other exigencies.

We expect an increase in TAT by 1-2 days for local placement across all modes of transport (LTL, FCL, LTL), along with transit time delays by 10 - 20% due to border checks and multiple blockades.

Schenker India can arrange security escort services where needed to move your essential cargo, to reduce roadblock, and facilitate connection to air and seaports. Contact your Account Managers for more details.

(Mar 30, 2020) - So far, Vietnam, Thailand, Malaysia, and the Philippines operate below COVID-19 levels.  

Japan, Korea, Singapore, Australia, New Zealand Land Transport are still in operation at adequate levels, albeit with constrains and delays expected.

China, Wuhan operations are waiting to reopen as soon as approval is given by the authorities. India land transport operations remain in critical state. Transportation of all goods, without the distinction of essential & non-essential, have just been allowed through a government issued notification dated March 29. We are working closely with our partners to clear backlogs.
 

  • Middle East/Africa 

(Apr 02, 2020) - The Prime Minister of Egypt has imposed a curfew with effect from March 25. Trucks will not be allowed on the main highways during such hours (7 PM - 6 AM daily). DB Schenker in Egypt has an appropriate business continuity plan in place to adhere to such restrictions. Please get in touch with your Account Manager for more information.

(Mar 30, 2020) - Complete lockdown in South Africa for 21 days with effect from March 27. Operations for food, medicine, and critical products will continue. DB Schenker in South Africa is a certified logistics service provider under essential services and will be operating during the lockdown.

(Mar 30, 2020) - Land distribution to GCC and Levant countries (via Saudi Arabia) have been suspended for general cargo. The commodities exceptional to this rule are food items, medical items, military / relief / aid items.
 

  • Americas 

(April 02, 2020) - USA:  Capacity is available however certain regions at premium. Mexico: Running normally with capacity (US / MEX / CAN / C.A. ).

Cross border still open and running. Sea drayage have less volumes.

Canada: Operations mostly running normally.

Brazil: Working normally at slightly reducing volume levels. Borders between Brazil and other countries are working normally for the transportation of goods.

Procurement Forwarding side: Operations supporting Air Ops as well as Ocean Ops running for the most part smoothly.

  • Global

(Apr 02, 2020) - Airfreight carriers are introducing more passenger cargo flights as of this week to support the global supply in the airfreight market. However, COVID-19 has led to a significant change in supply as approximately 75% of the global capacity is now freighter capacity with only 25% belly capacity remaining in the market on international passenger flights. The dependency on freighters has increased week by week leading to a continuous high pressure on airfreight rates. Currently we do not foresee a change especially on highly constrained trade lanes. What we have done to support you:

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)The flight operations from Europe – India – Europe is also now able to connect your requests to and from the USA and will operate as of this weekend on a weekly basis. Please reach out to your Account Manager for further details and support.
 

  • Europe 

(Apr 02, 2020) - All offices remain in full operation with access to terminal handling and ground transportation. All of our European hubs deliver import and receive export freight with no backlogs recorded over the weekend. Operationally, our linehauls to and from the hubs remain on time. In some areas, our cross-border trucks still experience delays.

We do record a further decrease in export volumes in the market, whereas import volumes remain stable. China imports remain at an all-time high, mainly due to very strong demands in medical supplies, protective gears and face masks which DB Schenker continues to support with the utmost priority.   
 

  • Asia Pacific 

(Apr 02, 2020) - There are no significant updates in status from the previous advisory.

For India, airfreight operations remain accessible for both import and export activities, including customs clearance. However, capacity remains constrained at less than 30%. We have put in place charter programs planned for April 2020. Do get in touch with your Account Managers for further details.

Congestion at airports continue to be a concern in view of possible damages and difficulty in locating cargo due to capacity utilization above 100%. We recommend customers to move cargo to transit warehouse or request for warehouse in factory (where possible) to be opened to accept cargo. We will continue to witness delays of up to 1-2 days in clearance and transportation across both air import and export shipments.

(Mar 30, 2020) - Market capacity remains severely constrained or critical for major SEA countries, India, Japan, and New Zealand, ranging from approx. 10% to less than 50%. We continue to collaborate with our other products to provide work-around inter-modal solutions for customers. A quick and early recovery is not expected in April.
 

  • Middle East/Africa 

(Apr 02, 2020) – Even though belly capacity continues to reduce as passenger services remain suspended to many MEA countries, DB Schenker in the region is able to manage the current demand with available cargo capacity. However, airlines have withdrawn the contract rates until the situation resumes back to normal.

In addition to inbound / outbound freighters, airlines are now introducing passenger-cargo flights to support the current market demand. Please get in touch with your Account Manager for more details.Overall, our air freight 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.
 

  • Americas 

(Apr 02, 2020) - USA-China: Capacity and demand continue favorable. New China restrictions on PAX carriers are not impacting the USA exports significantly due to abundance inbound Freighter flights that provides capacity on the return leg. Rates remain above pre-COVID-19 levels however no exceptional highs. No major backlogs.

USA to Asia (excluding China): TH, KR, SG, and JP tight with some backlogs. USA to IN and OZ now critical. Passenger services into these markets have for the most part been suspended. With the easing import restrictions, demand is further increasing, placing strain on capacity with the freighter operations.

USA-Europe: Demand is moderate to strong. Going into April, the impact of the continuing cutback in passenger capacity is having its expected effects. We are making full use of our alternative capacity on the freighter flight operations 3 x week ex. ORD and ATL to FRA. 

USA -Latin Am / Latin Am to Europe & Apac: Passenger services have become significantly reduced as in the other trade lanes after governmental ordered quarantines and restrictions on foreign entry have been put in place. Import demand to Latin Am in the market is down significantly and freighter capacity is enough to maintain services at slight elevated pricing.

Airline Terminals Cargo handling – Due to staff reductions related to virus, the JFK airport Intl cargo terminals have been heavily affected creating transit delays:  Delayed releases / receipt of cargo.  

  • Global

(Apr 02, 2020) – Ocean carriers are still in deep talks within their alliances regarding the immediate future schedules as productions and manufacturing become signifcantly affected on both imports and exports. Extensive country lock downs such as the one in India (for the next 3 weeks) have put an additional constraint to the services as ports and operations are significantly impacted. So far we understand that more than 100 sailings globally have been announced as cancelled. Further schedule amendments are to follow should the vessel utilizations look unsatisfactory.

Carriers have advised that there will be a potential need to adjust agreed shipping times, routes, and prices. We will continue to support our customers proactively with arranging allocation and making equipment available. At the same time, we are in contact with customers on the ability of receiving incoming volumes as we observe trucking shortages and a congestion of equipment at terminals, which could come costly.

Our advice for ensured uplift and forced delay of cargo:

Please communicate with us: Forecast, Forecast, Forecast (6 to 8 weeks in advance are advisable, in particular for special equipment including food grade and reefer)
Please idenfity cargo of priority
Please consider to make use of SchenkerOcean Delay in Transit options in all trades as idling of boxes in the port will become costly
Please consider to accept de-tour for the cargo: SchenkerOcean alternate routing options to ease bottlenecks (e.g. ship North Asian cargo via SEA to OCE)
 

  • Europe 

(Apr 02, 2020) - There is a very strong export booking situation in the market which is foreseen to come to an end due to PO cancellations starting as well as factory production sites closing down. The closing of private and public sectors all over Europe has started to affect port productivity. However, no impact on port operations reported. Vessel utilization is at 100% with roll-over scenarios during March and early April; rates have moved up significantly on trades to the East. Weeks 14-20 show dramatic capacity decreases of up to 54%. Significant capacity increases follow during weeks 21-23, however these services are under carriers’ review and we have to anticipate severe service changes. All European Ocean Freight Branches are fully operationally functioning.
 

  • Asia Pacific 

(Apr 02 2020) - The lockdown in India is still critical although the government now allows all kind of transport, irrespective of essential or non-essential goods during the remainder of the lockdown period, enabling container cartage to-and-from the ports and container yards. However, truck driver availability in India is still critical. Bangladesh has also announced a lockdown but with no impact on the ocean operations which can continue to serve the reduced demand.

For shipments to and from the Philippines, we discourage the use of Manila North Port due to high yard utilization and severe congestion to be expected in the following days. Alternative port options are available. In other ports, cargo is still moving normally, for now. Services will be downsized in the next weeks accordingly.

Carriers have already implemented further blank sailings to cope with the drastic drop in volumes in view of the restrictions of business running and plant closures.
 

  • Middle East/Africa 

(Apr 02, 2020) - 100% vessel utilization ex MEA especially to EU and Noram has led to increased rates, PSS application and equipment shortage in all ports: especially Oman is concerned as well as 20’ supply in UAE. Priority is given to perishables. All port operations are working fine. Our ocean freight offices in the countries continue to serve customers since logistics and supply chains are considered business critical as per local government directives. Moreover, we are closely monitoring the situation as the Ramadan season is around the corner.

(Mar 30, 2020) - As an alternative for air freight 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 

(Apr 02, 2020) - TPeb bookings start to drop, however vessels during week 14 and 15 are still fully booked and rolling: first additional blank sailings to kick in during week 15. No high hopes for the PSS/GRI announcements the week of April 15.

Vessels leaving North America still sail extremely full: equipment inventory status remains tight in all inland locations, affecting US inland sites (HOU, MSY, OAK, CHI, MES/STP, CMH, CLE, CLT, LU 0I, MEM, and OMA). Peak bookings are expected to last until the end of April with successful GRI/PSS implementations. However, with fading volumes, fading rate levels are expected in parallel for the second half of April. Possible truck driver shortage.

Vessels leaving Lat Am due to dry fruit cargo rush until early May: Reefer in Chile extremely tight. Pressure on free times with no extension continues.

  • Global

(April 02, 2020) - While all life supporting sites remain fully operational, we continue noticing fluctuating volumes in the market. Compared to market forecast: non-essential businesses with lower volumes, essential industries at or above forecasted volumes. Hence, we appreciate the very close conversations with our customers and like to further underline the need of staying prepared:

To jointly anticipate any efffects on global operations and supply chains, please stay in touch and communicate with us frequently on forecast.

(Mar 30, 2020) - Due to COVID-19 pandemic, Customers are required to shift goods and are in need to re-coordinate parts of their supply chain, especially looking for additional space. To actively help and support with agile solutions, we are closely monitoring available space to support our customers, e.g. absorbing potential backlogs.

For detailed information or inquiries, please reach out to your DB Schenker Account Manager or local contact person.

(Mar 26, 2020) - We continue to adapt and adjust our operations globally based on the health and safety of our staff and the needs of our customers. The protection of staff through HSSE, staggered work cycles, and disciplined rest / work cycles continue to be our focus in order to preserve the maximum labor force for our operations at the blue-collar level. Meanwhile, we are monitoring and coordinating through stand-off management and on-site supervisions, a safe and productive site management method to maximize available resources and protect our workers from secondary contamination.
 

  • Europe 

(April 02, 2020) – All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

Italy shows strong indications to constrict and shut down operations that are non-critical to the health of the citizens. Consumer operations around the region are operating at full speed in order to fulfill the distribution of food, sanitary, and healthcare-related products to Europe.

Southern Europe continues to show a stronger impact as Northern Europe deployed social distancing and work-from-home (WFH) initiatives in advance of the increase.

Automotive and industrial operations have restricted their activities across the region to minimal levels.
 

  • Asia Pacific 

(Apr 02, 2020) - There are no significant developments or updates since the last advisory. NZ has moved to Level 4 (highest) nationwide lockdown until Apr 23, with only essential services (of which logistics and transport qualify) are permitted to continue operating (within stringent limits) to support essential businesses.  India continues to be impacted the most, with the Philippines next most constrained.

Even with continuing restrictions in the APAC countries, our service levels are so far being maintained.

With imported infections continuing in the APAC countries, China is implementing restrictions in Yunnan and Henan provinces, whilst Hong Kong continues to extend the level of restrictions. We continue to monitor the situation closely for any potential impact to operations.

What we like to ask our customers:

Keep close communications with your day-to-day points of contact. Even with mandated split and remote teams, we stand ready to support your logistics needs.
 

  • Middle East/Africa 

(April 02, 2020) - In South Africa, the government has initiated a lockdown for all businesses except for supermarkets, food and medical establishments. Respective DB Schenker sites remain functional with appropriate employee health and safety measures in place. Complete shutdown of all life activity, except food and other basic need businesses, is becoming more probable in some countries in the GCC and Africa. We continue to review possible scenarios for protecting the workers at this site with little effect on our operations.

Saudi Arabia and Kenya have announced shutdowns of non-critical operations and the UAE continues.
 

  • Americas 

(April 02, 2020) - Canada, any products related to food, drink and sanitation continue to operate strongly. Customer non-essential sites remain closed until further notice.

United States is further extending social distancing through April 31st. Our essential business is continuing to operate normally.

Mexico has announced more requests of non-essential businesses to enforce social distancing. We are operating business per government mandate.

Argentina has announced an extension of closing of businesses. This announcement has been extended through April 31st.

  • Global Projects / Oil & Gas

(Apr 02, 2020) - Break bulk shipping capacity with multi-purpose vessels (MPP) is still widely available and bookings can be placed despite cancelled liner sailings in some trades. In addition to break bulk or out-of-gauge cargo, there is an increase in demand in the market to use MPP fleet for cargo types which are normally transported either containerized or as pure bulk. Following various lockdowns and restrictions announced (e.g. India) operational delays are expected and additional quarantine measures are in place for various ports which have an impact on lead time and costs.

Our dedicated teams around the world are fully operational and help clients to come up with customized transport solutions for all break bulk or out-of-gauge shipments or any other project shipment independent of trade lanes.
 

  • Fairs, Events and Special Logistics

(Apr 02, 2020) - With the majority of fairs and events worldwide being postponed or cancelled, we understand the strain on event organizers, exhibitors, participants, and contractors. We are in close contact with the leading organizers and associations worldwide and continue to monitor all developments closely.

Our Global Fairs & Events Service Center is 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.


Update: Sports Events

The rescheduled Tokyo 2020 Olympics will take place from July 23 – August 8, 2021.  This postponement will lead to many changes in the global sports calendar with many dates of already scheduled events to change.

Our Sports Events teams are globally available and prepared to deal with the new situation and its challenges. Please contact us if you have any questions regarding early return transportation, interim storage or other logistical requirements in connection with this postponement.



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 help instill 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.


We will continue to regularly update this advisory as the situation develops.
 
Thank you for your patience and support.
DB Schenker COVID-19 Customer Advisory Team


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.