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Customer Advisory COVID-19 Global Update

July 6, 2022

More than 27 months ago, we started this report with the intention to inform you about the short-term impact of the COVID-19 pandemic on our common business. The disruptions the pandemic caused often came unexpected, were difficult to predict and sometimes hard to explain. Our Global Customer Advisory was designed to deliver transparency and understanding for the extraordinary conditions under which we all had to operate. We hope it gave guidance towards solutions and supported the collaboration inside our partnership.

Today we issue our last COVID-19 Customer Advisory Report. Not because COVID-19 has ended everywhere, rather due to the fact that its impact on business has diminished. The editorial team at DB Schenker would like to thank you for your attention, your feedback and encouragement over this time.

Please continue to be engaged with your DB Schenker Account Managers on your latest plans, prices and projections. They will invest the utmost effort to support your business with corresponding solutions.

* For Ukraine Updates, please stay informed here: Ukraine Crisis Update | DB Schenker in Europe *

Executive Summary

Air Freight

  • The lockdown in PVG officially ended as of Jun 1, but restrictions are not completely relaxed.
  • China is still facing delays of import cargo in all major ports, which impacts manufacturing.
  • 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.
  • Increasing numbers of COVID-19 infections are causing delays and diversions at Ground Handling Agents.

Ocean Freight

  • Global ocean market demand slows down, however still expected to outperform new building capacity supply for 2022. The geopolitical situation in Ukraine and Russia as well worldwide congestion in ports and at terminals is impacting the market negatively.
  • Continuously missing capacity in the carrier service set-up adds further negative impact to the supply, keeping the supply and demand delta imbalanced. Carriers advise about effectively 15 - 20% less capacity available due to capacity being tied up through slow port productivity, congestion, and other schedule delays, including blank sailings.
  • Global carrier schedule reliability is currently at 36.4% and the average delay of vessel arrivals has improved to now at 6.2 days.

Land Transport

  • Only very few restrictions to contain the COVID-19 pandemic are still established in some European countries, directly or indirectly affecting transportation.
  • In case of disruptions, we follow our pre-defined contingency plans to ensure flows of cargo. We are adapting our transport service offerings daily to the needs of our customers.
  • Some receivers may continue to have limited operations. All shippers may check the delivery possibility with the consignee to avoid cost for storage or return shipments.

Contract Logistics

  • Global situation remains heterogeneous, though infections and respective governmental restrictions decrease, overall.
  • Our sites keep operating stable, and we continue to monitor the status quo very closely while having respective BCP’s in place.
  • Next to servicing our customers, the well-being of our employees remains a key priority.
  • To keep our customers’ businesses running, we are in close contact with all our partners, offer
    short-term support and carry on assisting with all conceivable warehousing services on short notice.

Fairs, Events and Special Logistics

  • The situation within the global exhibition industry has improved significantly as nearly all markets are open again. The only exhibition market of importance remaining closed is Hong Kong.
  • Our teams worldwide are in close contact with trade fair and event organizers as well as the respective associations and authorities and able to advise you on the current situation and provide the required tailor-made services.

Global Market Updates

  • Global

(Jul 5, 2022) - The airfreight market and dynamics remain relatively stable based on the current situation worldwide.

The lockdown in Shanghai has officially ended as of Jun 1, but we are not seeing that the restrictions have completely relaxed. There are still local restrictions and testing requirements in place which further emphasises the Zero tolerance policy. All major ports in China are still facing backlogs of import cargo. Factories have been granted permission to reopen, but the start of production is extremely slow due to the shortage of staff and imported material which are stuck at the various ports due to the backlogs. The volumes ex China has not really increased yet as a result of this.

Increasing numbers of COVID-19 infections as well as the beginning vacation season are causing delays and diversions at Ground Handling Agents. We do expect this situation to continue during the next weeks.

On the trans-Pacific and intra-APAC routes the market demand is still weak and the volumes into Europe also did not really pick up yet. The increase in volumes is expected once the raw material has reached the factories, production started, and the products are being pushed out.
Jet fuel prices have reached the highest level since Apr 2011. Jet fuel price average for 2022 (year to date) is at $143.4/bbl (US dollars per barrel).

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)
→ 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 

(Jul 5, 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 implications caused by the war in Ukraine for more information.

  • Asia Pacific 

(Jul 5, 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

→ There are no operational impact updates since the previous advisory as China progressively gets back on track.
→ Some delays may still be expected due to backlog.
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

The ongoing war in Ukraine will also be expected to have both a direct and indirect impact on capacity, operations, and costs in the near term, due to trade sanctions imposed as well as compliance requirements.

For questions about local airfreight operations and possible disruptions, please get in touch with your DB Schenker Account Manager.

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.

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. 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 

(Jul 5, 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 

(Jul 6, 2022) - Volatility continues to affect trade-lanes interacting with the Americas. Staffing shortages continue to affect carrier operations, airport terminal cargo handling, and trucking services in varying degrees. This in part due to the continuing impact COVID-19 and its variants, but also market factors where shortages as well as turnover of staff are affecting productivity. The war in the Ukraine and its effects, along with the strong COVID-19 mitigation efforts in China combine to create a difficult market environment for transport.

USA airport terminals continue to be congested. Processing of cargo has shown some improvements in the major gateway cities, but still slow and hampered by extended 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 affected by the on-going customs strike (slowdown) creating some terminal congestion affecting both imports and exports in the transition of cargo.

Relative to market demand vs capacity developments, the trans-Atlantic, and intra-Americas trade lanes have seen some improvement. The trans-Pacific trade-lanes remain critical, as are movements to India. Movements to South Africa as well remain a challenge. Lockdowns in China, affecting key cities are being withdrawn, but control protocols continue to have their effects on production, and logistics services. China freighter flight schedules are improving with carriers announcing expanded schedules.

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.

Americas exports by trade-lane:

USA – Europe
→ Market demand for airfreight capacity remains strong, but much improved with access to capacity less of an issue. The slow re-introduction of scheduled passenger flights is helping the situation, but schedules are often changed based on demand, and available crew. Terminal staffing issues in Europe, and especially FRA, have created disruptions in carrier schedules: Passenger aircraft as well as freighter operations. DB Schenker’s own substantial scheduled flight operations is supporting our customers’ needs and maintaining a reliable flight schedule: 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 – China Specific
→ Chinese governmental protocols for combating COVID-19 are abating, but re-establishment of production, and continuing mitigation efforts are creating staffing inconsistencies affecting all transport sectors. Carrier flight schedules have improved, but production and transit delays are anticipated to persist as is airport terminal congestion. 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 DB Schenker constant arranging of adhoc charter movements for our customers.

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 – Latin Am and Latin Am to Europe and APAC
→ Intra-Americas: Capacity demand remains strong, but easing on most trade-lanes from North Am to South Am. Remaining tight are intra-Latin Am movements, and exports from Latin Am to North Am. Passenger aircraft flights are increasing supporting many of the long-haul lanes, but are subject as well to staffing issues, and schedule changes. Destinations in China and India, continue as well to be a challenge. On the critical Miami to Sao Paulo trade lane, DB Schenker is maintaining weekly Schenker controlled flight operations from ORD to GRU, as well as from MIA to VCP. Airport terminals in Latin America in general operating relatively well with transitioning cargo. Specific to Brazil, where Sao Paulo is affected by a customs strike; heavy delays occur if any irregularities are encountered at the time of customs processing.

USA / Latin Am – Middle East / Africa
→ South Africa with continued strong market demand and shortage of capacity, but with our flight operation network offering connections via our European hub, but as well can be affected by delays at transit airports due to carrier terminal staffing issues.

  • Global

(Jul 6, 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 of more than 7 Mio TEU for 2023 / 2025 is misleading: A significant amount of capacity will remain being still tied up in congestion around the world also in the year to come. We expect that preparations for the IMO 2023 regulations will add to this and will lead to a deficit on the supply side.

Signs of weakening demand on all trades are visible, in addition to the impact from the war in the Ukraine – incoming bookings at carrier have started to decline. Consequently, we have seen dropping SCFI spot rate level for all main trades ex Asia during the past weeks; current rate levels stabilize and might move up due to increased pressured on space due to missing vessels. Overall, however, container freight rate levels remain exceptionally strong and freight rates remain close to record levels.

With fuel costs on the rise, bunker adjustment factors will increase.

With close to no idle capacity, the vessel charter market remains tight, charter rates continue to hit record levels.

Hence it does not come as surprise that the vessel sales and purchase market still show a high level of second-hand purchase (mainly below 3000 TEU, scarce tonnage available in larger segments) and active ordering of newbuilds continues.

The severe wave of COVID-19 resulting in the lockdown in SHA / China also further aggravated congestions and disruptions globally due to increased customs checks and rerouting of cargo keep the market and supply chain disrupted.

For the upcoming peak season ex Asia, carriers expect a utilization of around 95% for the upcoming Q3 with shipments from the beginning of July clearly picking up.

With pressure on sailings that might be blanked more often due to missing vessel capacity, we expect rates to move upwards again. Equipment availability brings with it further constraints: warehouses are full, with some goods which are not needed immediately but were ordered during a not-to-be-missed Christmas sale, resulting in containers sitting longer than planned at the terminal, blocking space for exports. This causes bottlenecks on the equipment supply, additional time needed for the vessels to load and discharge, congestion and delays, which in turn causes costs to increase. Rates will not normalize until this matter is fixed.

Back haul trades remain volatile, but rates stay stable or low as carriers are keen to get costs for positioning covered. Hence, not all carriers follow rate trends but try to counter steer with high drop-off / pick-up charges.

With effect from 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 and 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 non-compliant. 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. 

IMO 2023 GHG (Greenhouse Gas) strategy by Jan 2023 graphic

Source: 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.

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 IMO2023 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 part loads required more quickly.
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).
→ Shipments via biofuel usage.

  • Europe

(Jul 5, 2022) - All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Jul 5, 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

→ There are no operational impact updates since the previous advisory as China progressively gets back on track.
→ Some delays may still be expected due to backlog.
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

*India: Trailer Association in India declared Strike from Jul 4th in East India - Chennai, Ennore and Kattupalli Ports due to increase in diesel price and empty yard charges.

Possible Impact expected - Movement stoppage from Port to CFS and vice-versa. Potential port congestion due to stoppage of movement from Jul 4th onwards.

General:

→ The ongoing war in Ukraine will also be expected to have both a direct and indirect impact on capacity, operations, costs in the near term, due to mode conversions from Air and Land, as well as from trade sanctions imposed and compliance requirements.

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. 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.

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 

(Jul 5, 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

(Jul 5, 2022) - Europe Land is fully operational and available for business, managing very 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 

(Jul 5, 2022) - Only very few restrictions to contain the COVID-19 pandemic are still established in some European countries, directly or indirectly affecting transportation. 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.

  • Asia Pacific 

(Jul 5, 2022) - Eurasia rail service will continue to be provided.

There has been a stable increase in volume on monthly basis between China and Europe.

Railway transportation via China – Russia, Mongolia, and Kazakhstan borders.

Railway transport via Belarus – Poland border, Russia – Poland border, and Kaliningrad port.

→ Departure situation: 3 - 7 days delay in departure for WB
→ Booking closed: WB for week 29 | EB for week 29

The space capacity is still extremely limited in July, meanwhile, the China Rail has issued “departure limitation” for those Non-Eurasia trains to relieve the border pressure at Alashankou and Khorgos. It’s the 1st limitation notice in 2022 affect from Jul 2 to Jul 9.

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.

Border Situation
Two borders Alashankou (CN) and Khorgos (CN) are impacted by “departure limitation” from Jul 2 to Jul 9 to clean the backlog. Eurasia trains are not in the impact list, but departure delay at original stations could still happen.

Border delays
→ CN / KZ Border: Alashankou / Khorgos border 5 - 10 days
→ CN / MN Border: Erlian border 10+ days
→ CN / RU Border: Manzhouli border 10+ days
→ BY / PL Border: Mala / Brest border 3 - 7 days
→ RU / DE Border: Kaliningrad / Rostock border 2 - 5 days

Lead time

Current T / T lead-time for Westbound is slightly longer. Transit time to Mala is 20 - 26 days, to Rostock is 20 - 26 days, to Duisburg / Hamburg +3 - 7 days upon border released.

The lead-time for Eastbound is around 20 - 30 days.

Asia Landbridge updates

Emergency news

  1. Dongxing (DOX) / MongCai (MOC) border can now accept new trucks crossing the border for both Northbound and Southbound shipments.
  2. Throughput capacity from CN DOX - VN MOC border is about 120 - 170 trucks per day.
  3. Throughput capacity from VN MOC - CN DOX border is about 50 - 70 trucks per day.
  4. For current queued 196+ trucks in Pingxiang (PXG), the throughput capacity is at 150 to 170 trucks per day into VN Huu Nghi border.
  5. Throughput capacity from VN into CN via Pingxiang road border is at 85 to 100 trucks per day.
  6. China – Laos rail solution remains stable mode of transport for Land.

Latest News

  1. Southbound PXG direct border leadtime processing is around 6 - 7 days with 150+ trucks.
  2. Alternatively, southbound PXG border via FTZ transfer leadtime processing is 1 - 3 days.
  3. Southbound DOX border leadtime processing is around 1 - 3 days.
  4. Northbound PXG border leadtime processing is around 2 - 4 days.
  5. Northbound DOX border processing leadtime is around 1 - 2 days with 60+ trucks.
  6. From Apr 1 and onwards: Fully vaccinated MY drivers can enter into SG Tuas or Woodlands without 48-hour Covid-19 test result anymore.

Recovery in China continues to improve, and China government has agreed to remove the asterisk (*) on the traveler’s journey record which has been in effect from June 29 onwards. This means that substitute Shanghai driver is no longer needed for Shanghai collection and delivery, instead, normal vendor’s driver will be used (No additional SHA driver surcharge is needed).

Border Gateway observations

Border Gateway observations

General APAC Region SITREP

→ There are no operational impact updates since the previous advisory as China progressively gets back on track.
→ Some delays may still be expected due to backlog.
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

*Australia: Parts of New South Wales is experiencing heavy rainfall and severe flooding, which is expected to continue for coming days. A number of regions are impacted by road closures and evacuation orders, with delays across the road transport network.

General:

→ The ongoing war in Ukraine will also be expected to have both a direct and indirect impact on capacity, operations, and costs in the near term, due to mode conversions from Air, as well as from trade sanctions imposed and compliance requirements.

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.

  • Middle East/Africa 

(Jul 5, 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.

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.

UAE: The government has increased fuel prices, which is driving transport prices and inflation.

South Africa: Intermittent equipment breakdowns continue to plague the Cape Town Container Terminal, but lower volumes have created an opportunity for some much-needed equipment maintenance.

Cross-border transporters experienced various challenges in the last couple of weeks. These revolved around strike and protest action, water shortages in and around Musina, and prolonged clearing times for Beitbridge, Kasumbalesa, Lebombo, and Skilpadshek.

For South African borders, clearing duration in May averages around 21 hours.

  • Americas

(Jun 22, 2022) -

→  Argentina: Customers and commercial activities are working normally. The borders are experiencing big delays due to COVID-19.
→  Brazil: Customers and commercial activities are working normally.
→  Canada: No disruption to carrier network, except transborder vaccine mandate still exists for drivers.
→  Chile: Customers and commercial activities are working normally.
→  Mexico: Customers and commercial activities are working normally.

  • Global

(Jun 22, 2022) - The situation continuously improves in Greater China, and we notice no change or deep impact of business 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.

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

(Jul 5, 2022) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific

(Jul 5, 2022) - The following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

→ There are no operational impact updates since the previous advisory as China progressively gets back on track.
→ Some delays may still be expected due to backlog.
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

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 in effect.

Our service levels are maintained with CL operations available to support prevailing customer needs, in compliance with local regulatory requirements. Some delays may be expected due to availability of workforce and enforced hygiene and monitoring SOPs in certain instances.

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 

(Jul 5, 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

(Jul 5, 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 have spiked slightly in some geographies, while others continue to be stable; hence, we continue diligent and monitor closely the situation daily. Mask mandates have been re-initiated at some sites while in others reduced / eliminated depending on local / country legislation as well as customer requests.

→ USA: Operations in the USA remain operational with precautionary measures in place for the health of our people and delivery of services to our clients. There has been a slight increase on business disruptions as a result of COVID-19 absenteeism but with caution, and precautionary measures remain in place. There are some sites customers have requested re-instatement of masks for precautionary measures until infection cases drop.
→ 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 situations, adequate procedures are established and adjusted based on need to ensure the continuation of business.

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

COVID-19 Customer Advisory Global Update – June 23, 2022
COVID-19 Customer Advisory Global Update – June 8, 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.