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Customer Advisory COVID-19 Global Update

June 8, 2022

Please find here the latest edition of our COVID-19 global customer advisory update.

The spread of the Omicron variant seems to decline in many countries indicating that an end of the pandemic might be on the horizon. However, while bans and regulations get lifted in Europe and the US, the focus pans over to China and its COVID-19 measures in a number of cities and regions (featured in today’s spotlight). We look forward to continue our update services as long as the global pandemic and its aftermaths may impact the economy and hence our common business.

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.
  • Market rates remain volatile.
  • Surging oil prices are driving carriers fuel surcharge increases.
  • China is still facing backlogs of import cargo in all major ports, which impacts manufacturing.
  • Hong Kong – China Border: All truck border crossings are currently running on 50% capacity.
  • The labour situation in the USA remains constraint.
  • 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.

Ocean Freight

  • Global ocean market demand slows down, however still expected to outperform new building capacity supply for 2022. Geopolitical situation in Ukraine and Russia as well as COVID-19 lockdown in main port Shanghai 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 in favor of the supply. Carriers advise about effectively 15 - 20% less capacity available due to capacity being tied up through slow port productivity, congestion and other schedule delays.
  • Global carrier schedule reliability is currently at 34.4% and the average delay of vessel arrivals has improved to now at 6.4 days.

Land Transport

  • 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.
  • 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 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 volatile, though infections and respective governmental restrictions decrease in Greater China.
  • Our sites keep operating stable, so do we continue monitoring the status quo very closely and having respective BCP’s in place. 
  • Next to servicing our customers, the well-being of our employees remains key priority.
  • To keep our customers’ businesses running, we are in closest 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 as most markets are open again. Most authorities around the world are allowing exhibitions and business events to take place again, given certain preconditions and protective measures.
  • A recent flare-up of COVID-19 cases has led to show postponements and cancellations in China.
  • 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.
  • For further information or questions, please contact us under dbschenkerfairs@dbschenker.com.

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:

→ The Shanghai government has announced to lift the lockdown in Shanghai from Jun 1 and COVID-19 infection cases in other cities in China are on a decreasing trend.

→ Shanghai has entered a comprehensive and orderly phase of resuming work and production. All traffic restrictions have been removed. DB Schenker staff in Shanghai office will return to the office from remote work status from Jun 6.

  • Impact on service operation

→ In general, more companies are back-to-work gradually and will take time to normalize. The situation is still volatile. Operations in Shanghai remain somewhat constrained with labor shortage and traffic resumption. All our products (incl. pre-carriage, on-carriage, as well as domestic transport and international landbridge) may still face some delays.
→ Ocean: Supply chain operations with ocean freight are gradually back to normal. Capacity is still constrained and will take time to recover. Public depots re-open for lifting on / off. All terminal operations in SHA resume work gradually. LTL and FTL resume service however at higher spot quotes.
→ Air: Highways connecting to PVG airport are back to normal, but several areas are still under restrictions. Truck resources are resuming gradually. To follow the regulations from the local authority, PVG terminals and our CFS continue to operate with “closed - loop management” measures imposed. After more factories resume operating, backlogs in import warehouses have been reduced.
→ Land: Truck and driver availability as well as LTL logistics parks are recovered. We expect that the market rate will return to normal after all resources and market volume stabilize.
→ CL: All sites operate as normal.

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

All the citywide lock down in Area South has been lifted. In general, there is slight improvement on the cross-dock service between Mainland China and Hong Kong, more capacity space can be offered to meet the needs of customers. While, for larger volume orders, a buffer of at least two days will be required for preparation.

  • Market updates and major operational impact in China North area

→ Due to the COVID-19 cases reported in Beijing and Tianjin, DB Schenker staff in these two cities work remotely from home.
→ Pick-up and delivery are constrained in some locations in Beijing, Shenyang and Changchun area.
→ Changchun and Jilin city are almost back to normal, all factories have been reopened with COVID-19 control measures in effect. Overall productivity is ramped up to over 90%. Changchun office is operating in A/B shift work mode from May 24.

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

(Jun 7, 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. Residents are allowed to freely move around provided they have a PCR test which is not older than 72 hours. This does not include going to the office or place of work.

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 border from China to Hong Kong is currently running at 50% capacity. The Chinese authorities implemented a corridor which is in place mainly for relief goods and medical supplies. It is still highly recommended to use barge services as an alternative solution.

The demand situation is reaching peak levels with major supply disruptions caused by the global ocean freight situation. A lot of typical ocean freight is converted to air freight.

Jet fuel prices have reached the highest level since Apr 2011. Jet fuel price average for 2022 (year to date) is at $136.8 / bbl (US dollars per barrel). On May 27, jet fuel prices were 114% 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)
→ 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 

(Jun 7, 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 by the war in Ukraine for more information.

  • Asia Pacific 

(Jun 7, 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):

There are no new operational updates for China South Area.

After requirements on crew quarantine was modified in Hong Kong, Cathay Pacific has announced that they would resume 85 - 95% cargo flights service from June onwards.

Guangzhou airport is getting back to normal with terminal staff resuming work step-by-step. Due to high import volumes, shipments can only be retrieved from terminal 3 - 4 days after arrival.

Shenzhen airport backlog has been cleared till last week, with the deployment of additional warehouse operators, and for import shipments, cargo availability is estimated around 2 - 3 days upon arrival.

China North area:

→ Effective from Jun 4, import shipments into PEK must store at inbound warehouse 10 days before physical pick-up.

Mass PCR testing is being conducted in Tianjin, which slows down the operations for both import and export at TSN. Operation for both import and export in BJS slowed down due to COVID-19 impact.

Rest of Asia

→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

→ 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 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 air freight 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. 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 

(Jun 6, 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 

(Jun 6, 2022) - Volatility continues to effect 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 as well market factors where shortages and staff turnover are affecting productivity. The war in the Ukraine and its effects, along with the strong COVID19 mitigation efforts in China all combine to create a difficult market environment for transport.

Specific to the 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 pick-up 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 on-going customs strike (slowdown) creating some terminal congestion effecting both imports and exports in the transition of cargo. In Mexico, weeks of high temperatures in April and May have abated for now but had caused passenger carriers to be weight restricted creating transit delays and terminal congestion.

The USA labor market situation in hiring of personnel is still a challenge impacted by shortages. The overall terminal warehouse situation 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. The trans-Pacific trade lanes remain critical, as are movements to India. Movements to South Africa as well remain a challenge. The conflict in Ukraine and COVID-19 related lockdowns in China, affecting key cities continue to have their effects. But the methodic removal of ‘lockdown’ protocols in PVG, and a much better situation in HKG are providing a positive outlook for the future. China 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. DB Schenker’s own substantial 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 – China Specific
→ In recent months, Chinese governmental protocols for combating COVID-19 led to city ‘shut downs’ and / or neighborhood quarantining with resulting effects to manufacturing, transport terminal operations, and flight cancellations. These protocols are now in the process of being relaxed with progress having been made. Carrier flight schedules are anticipated to improve later in June, but transit delays currently persist as airport terminals continue congested as demand increases. 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 ad hoc 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 connections 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 America to South America. Remaining tight are intra-Latin America movements, and exports from Latin America to North America. Passenger aircraft flights are increasing supporting many of the long-haul lanes. Destinations in China and India also continue to be a challenge. 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 Latin America in general operating relatively well with transitioning cargo. 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.

USA/Latin Am to 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.

  • Global

(Jun 6, 2022) - Global Supply and demand appear more balanced in the forecast for the remainder of 2022; current idle fleet is around 0.9%, however the gigantic order book for 2023 is misleading. A significant amount of capacity is still tied up in congestion around the world, we expect that preparations for the IMO 2023 regulations will add to this and will lead to a deficit on the supply side.

In the past decades, we have usually seen a scenario of oversupply – very clearly demonstrated in the years 2006 - 2009 and 2014 - 2016. This changed last year: on the swing back of trades, the global market container trade outgrew 2019 levels in 2021, the container ship capacity faced a strong demand for growth in response to a record high demand in 2021 leading to significant disruptions in the market, still today, about 15 - 20% of the capacity today is tied up in port congestions. 

The start of this year still benefited from that situation with 43% of the container trade growth being related to raw materials and consumer goods. Strongest trades during start of Q1 / 2022: Asia to Europe, Asia to Latam, but also Europe to North America, Europe to Middle East as well as Intra-Asia. Amongst the weakest trades: Outbound Noram and outbound EU. However, since then, the supply and demand situation for this year have become more and more balanced.

The current forecast for 2022 shows a demand of 4.9% vs a supply of new capacity of 4.3%.

For 2023, the supply stands currently at plus 8.3% vs a demand of 4.5%. However, especially the orderbook number with 6.8 Mio teu respective a supply of 8.3% for 2023 is misleading as this covers the nominal orders; expected impacts from the IMO 2023 regulation (addressing carbon emissions and vessel efficiencies) is not reflected in those numbers.

Trades ex Asia have become sluggish after Lunar New Year, with the TPeb holding up best. Reason for the lack of volumes is due to the traditional slack after Lunar New Year, this was followed by the Russian war in Ukraine, but also COVID-19 lockdowns affecting production.

Nevertheless, the idle fleet remains very low with 0.9%, thus no additional capacity available on the market. As soon as China fully reopens and productions come back into full swing, we expect a hot period ex APAC on all trades which will affect rate levels to climb up again.

Back haul trades remain volatile, rates rather stay stable or low, carriers are keen to get costs for positioning  covered, hence not all follow rate trends and try to counter-steer as well through drop-off / pick-up charges. Out of Europe, it is especially the trans-Atlantic into North America that remains very stable.

While the lock down in Shanghai might come to an end, the best estimate is that the volume will pick up earliest  by the beginning of June with a lot of uncertainties - though more than 1000 enterprises had been approved to be back to work, the return of the residents towards the production sites remains slower than expected. It is anticipated that volume pick-up needs at least another 3 weeks as production needs to restart. While we might see increased volume in June and July, the lost volume in April and May will not be necessarily compensated equally as for additional volume in June and going onwards, we expect some peak movements and a push for an earlier than usual start.

As the equipment turn time is awaited to be increased, possible bottlenecks on equipment supply might surface during June / July timeframe in Asia will have a negative effect on other trades as well.

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 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 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 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 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

(Jun 7, 2022) - All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Jun 7, 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): There are no operational updates for China South Area. 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 with once a week truck services between Shenzhen Gateway and HKG HUB. All satellite warehouse (incl. Zhongshan), Huizhou warehouse. SZX Ocean LCL warehouse Li hang has recovered to 100% production capacity.

China North area: Pick-up and delivery are constrained in Changping and Fengtai district of Beijing. In land pickup / delivery in Beijing Chaoyang, Shunyi and Fangshan districts are still restricted.

Rest of Asia
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Southeast Asia cluster countries.

Northeast Asia: South Korea

  • Truckers union declared strike from Tuesday (Jun 7, 2022) for all Korean ports (Pusan, Kwangyang, Incheon).
  • Expect export delivery & import pick-up will be heavily impacted (or suspended) during strike period. As of Jun 8, FCL delivery from / to ports is not possible as main roads into terminals are blocked. LCL delivery from / to CFS is only partially possible
  • Contingency plans in place for urgent cargo, there are limited amount official vehicles and private transport for certain commodities have been proposed.

No Operational Updates for Japan.

General

→ 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 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 

(Jun 6, 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

(Jun 6, 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 

(Jun 6, 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.

  • Asia Pacific 

(Jun 7, 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 22 | EB for week 22

***With the lockdown in Shanghai and Eastern China easing effective Jun 1, we estimate a full recovery in production and volume surge in export. Advise to book as soon as possible in order to block the capacity.

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
Alashankou / Khorgos is operating smoothly. In Europe, both Malaszewicze and Kaliningrad are now having shorter border crossing lead time. 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
(Rail traffic for Eurasian train at border runs normal, road border is congested)
→ RU / DE Border: Kaliningrad / Rostock border 2 - 3 days

Lead time
The current T / T lead-time for Westbound maintains its good performance. Transit time to Mala is 10 - 16 days, to Rostock is 18 - 22 days, to Duisburg / Hamburg +3 - 7 days upon border released. The lead-time for Eastbound has improved to approximately 20 - 25 days.

Impact of epidemic on traffic in Shanghai and its nearby cities
The COVID-19 situation is improving rapidly. The city has commenced easing restrictions for economic recovery. Lockdown in a few districts had already been lifted, according to the latest plan the rest will follow as plan from Jun 1.

Asia Landbridge updates

Emergency news

  1. Dongxing (DOX) / MongCai (MOC) border can now accept new trucks to cross border for both Northbound and Southbound shipments.
  2. Throughput capacity from CN DOX – VN MOC border is about 150 - 180 trucks per day.
  3. Throughput capacity from VN MOC – CN DOX border is about 50 trucks per day.
  4. For current queued 400+ trucks in Pingxiang (PXG), the throughput capacity is at 130 to 160 trucks per day into VN Huu Nghi border.
  5. Throughput capacity from VN into CN via Pingxiang road border is at 70 to 90 trucks per day.
  6. China – Laos rail solution remains stable mode of transport for Land.
  7. Shanghai is now easing restrictions – Collection from SHA shipper can be arranged if SHA shipper sites are operational during the partial lockdown.

Latest News

  1. Southbound PXG direct border lead time processing is around 10 - 15 days with 400+ trucks.
  2. Alternatively, southbound PXG border via FTZ transfer lead time processing is 5 - 10 days.
  3. Southbound DOX border lead time processing is around 5 - 7 days.
  4. Northbound PXG border lead time processing is around 4 - 5 days.
  5. Northbound DOX border processing lead time is around 2 - 4 days with 60+ trucks.
  6. Additional 1 day mandatory COVID-19 testing for all Northbound shipments via DOX and PXG borders.
  7. Truck-driver needs mandatory COVID-19 negative results with validity of 24 hours at both checkpoints of HK - CN and CN - HK lanes due to the rising covid cases from HKG.

Asia Landbridge

Latest news: Border gateways observations – Jun 7, 2022

Border Gateway observations

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): Market capacity on Southeast Asia trucks is increased. Borders are all open with congestion, caused by the backlog trucks. We can support our customers for new orders and overall average lead-time for the transition is approximately 2 - 5 days.

For domestics truck operations, all South China cities operate normally, while for the line haul transportation to the high / middle risk cities in East and North Area, there is still limited capacity and resource.

China North area: There are no Operational updates for 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 operational changes or updates from previous advisory for ANZ, India sub-continent, Southeast Asia cluster countries.
→ Temporary strains may persist on staffing resources. Though COVID-19 containment measures are easing, and operations are running smoothly for PAN India.

Northeast Asia: South Korea
→ Truckers union declared strike from Tuesday (Jun 7, 2022) for all Korean ports (Pusan, Kwangyang, Incheon).
Expect export delivery & import pick-up will be heavily impacted (or suspended) during strike period. As of Jun 8, FCL delivery from / to ports is not possible as main roads into terminals are blocked. LCL delivery from / to CFS is only partially possible.
→ Contingency plans in place for urgent cargo, there are limited amount official vehicles and private transport for certain commodities have been proposed.

No Operational Updates for Japan.

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 

(Jun 6, 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

(Jun 6, 2022) -
→ Argentina: Customers and commercial activities are working normally. The borders are experiencing big delays due to Covid.
→ 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 7, 2022) - While the situation improves in Greater China, we also do notice no change nor 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

(Jun 7, 2022) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific

(Jun 7, 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

→ No major operational changes or updates from previous advisory for ANZ, India sub-continent, Northeast Asia, Southeast Asia cluster countries. 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.

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.

Governmental imposed restrictions in APAC countries are easing at varying levels, our service levels 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 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 

(Jun 6, 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

(Jun 6, 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 June 22, 2022 release or earlier should there be significant developments. 

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.