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Customer Advisory COVID-19 Global Update

April 13, 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 capacity impact from the conflict situation in Ukraine have stabilized.
  • New lockdown measures in Shanghai continues to bring challenges for import and export cargo.
  • Market rates are remaining extremely volatile.
  • Hong Kong – China Border: All truck border crossings remain extremely challenging.
  • 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 normalizes, however still expected to outperform new building capacity supply for 2022. Geopolitical situation in Ukraine / Russia and Covid-19 lockdown in main port Shanghai starting to impact 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 has improved to 34.4% and so has the average delay of vessel arrivals to now at 7.11 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

  • Infections and respective governmental restrictions vary per region; while decreasing in Americas, the Omicron variant keeps affecting business, especially by labor shortages in the APAC region.
  • The well-being of our employees remains key priority, next to servicing our customers.
  • To stay agile and responsive, we are proactively addressing labor management challenges by having a special task force and recruitment plans.
  • As we are monitoring the status quo very closely in all countries and have respective BCP’s in place, our operations and respective customer services remain stable.
  • To keep our customers’ businesses running, we are in closest contact with all our partners and carry-on supporting 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 or partially open.
  • 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 current state:

→ The lockdown in Puxi region (west side of Huangpu River) of Shanghai has been in effect since 1st Apr. Lockdown measures continue in the areas of Shanghai's Pudong, Punan (south of Huangpu River) and adjacent regions, where positive cases have been detected during the COVID-19 screening in the past four days. Lockdown in Shanghai is being extended, with the municipal government reviewing and the measures daily in lieu of current COVID-19 situation. All Shanghai staff will continue to WFH.
→ Kunshan and Taicang (cities located in Jiangsu Province) announced citywide lock down until further notice.
→ Almost all public transport services are suspended in lockdown cities. Only vehicles used for pandemic control measures, emergency medical services, security, urban operation and emergency response are permitted on the roads after obtaining official approval.

  • Impact on service operation:

→ In general, all operations, deliveries in / out Shanghai and Kunshan are suspended. The traffic restriction measures released by the other regions in Area East are getting stricter and are adjusted frequently. All our products (incl. pre-carriage, on-carriage, as well as domestic transport & international land-bridge) are impacted and delays are expected.
→ Ocean: Port operations of all container terminals in Shanghai are faced with labor shortage, and container delivery to / from terminals suspended (incl. from / to surrounding cities). CFS stopped handling in / out-bound cargo, container depots are suspended.
→ Air: Operations in PVG cargo terminal continue, but the delivery to and from CFS is suspended.
→ LT: Cross province truck delivery in most of the regions in Area East have been impacted, constraints and challenges persists.
→ CL: Most of the Warehouses in SHA, Kunshan and Taicang are closed. The capacity in Wujiang site is constrained due to traffic control imposed.

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

→ COVID-19 situation in Hong Kong SAR remains very critical. Cross-border transportation with HK is severely constrained.
→ Several areas locked down in Nanchang, with office staff WFH since today. Some logistics parks in Nanchang were closed, which impacted pickup and delivery.
→ Some areas in Guangzhou lockdown, with no impact to Schenker so far, operations as normal.

  • Market updates and major operational impact in China North area:

→ Some cities, including Changchun, Jilin city, Shenyang, Tangshan, are in lockdown. DB Schenker employees in these cities are working from home.
→ Pick-up and delivery are constrained in some locations around Qingdao within Beijing, Hebei, Shenyang and Shandong area. Covid tests with a 48-hour validity are mandatory for drivers who pick up cargo in those areas.

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.

  • Global

(Apr 13, 2022) – The airfreight market and dynamics remain extremely volatile and fragile due to the impact of the COVID-19 policies and the ongoing war in the Ukraine.

After the full lockdown in Shanghai and Puxie have been eased, the Chinese government have introduced the following measures.

→ Shanghai introduced a traffic light system (Green / Yellow / Red) for all districts. Overall, they have defined 17000 districts. Approx. 7500 districts are having a green status, however, currently it is not clear yet how e.g. travels between the districts will be handled.
→ Since warehouses are extremely full, no cargo should currently be routed to PVG. The only exception is when cargo can be cleared and picked up by consignee. The situation should be clarified before sending any shipments to PVG.
→ Other airports are extremely congested and are putting out embargos - e.g. CGO announced an incoming capacity limit of 45 tons for all flights arriving at this airport.
→ RFS solutions are limited or not available from CGO, WUH, etc. to PVG right now.

The border from China to Hong Kong is still closed. The Chinese authorities implemented a corridor which is in place only for relief goods and medical supplies. It is therefore recommended to use barge services as an alternative solution.

Jet fuel prices have reached the highest level since Apr 2011. Jet Fuel price average for 2022 (year to date) as at $118.9 / bbl (US dollars per barrel). On Apr 8, the price for jet fuel was $152.87 / bbl.

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

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

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

Career Capacity Development 1-12/2020

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

  • Europe 

(Apr 13, 2022) - All offices remain in full operation with access to terminal handling and ground transportation. Operationally, our linehauls to and from the hubs are running as scheduled. Please get in touch with your DB Schenker Account Manager if there are implication by the war in Ukraine for more information.

  • Asia Pacific 

(Apr 12, 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

ANZ Cluster
→ There are no major changes from previous updates. Staffing availability within the airfreight and general transport sectors, including airport cargo terminal operations are contributing to the extended total transit time of freight.

India Sub-Continent Cluster
→ No major operational changes or updates from previous advisory on COVID-19 impact.
→ 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 hubs in Area South and East.
→ The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to sanctions imposed and compliance requirements.

Greater China Cluster
China East area: Operations at the PVG airport cargo terminal continue. However, delivery to and from CFS has been suspended.

With shortage of trucking drivers and truck capacity, the transportation, including pre-carriage, on-carriage, as well as domestic transportation and international land-bridge, etc. are affected and delays are expected.

China South area (including Hong Kong SAR): The COVID-19 situation in Hong Kong SAR remains very critical still. Cross border transportation with HK is severely constrained.

SZX airport back to normal operation. Market volume to HKG reduced significantly, resulting in airlines out from Hong Kong reducing flight frequencies. Demand out from South China remains strong and airlines fully booked till end of the week. Delay is expected in transit time.

China North area:
Expect longer transit times from Qingdao to Beijing. Transit time is expected to take half a day to 1 day longer. There is a shortage of truck drivers and capacity. CGO terminal is congested with import cargo.

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

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

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 if required.

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 

(Mar 30, 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 

(Apr 13, 2022) - Challenges continue for almost all trade lanes to and from the Americas. Covid-19 variant persists in effecting carrier operations, airport terminal cargo handling, and trucking services. The war in the Ukraine and its effects, along with the strong Covid mitigation efforts in China all combine to create a difficult market environment for transport. USA airport terminals continue to be congested. Processing of cargo with some improvements in some gateways but still slow, and hampered by long waiting times for pickup and delivery of cargo. This is less of a problem in Canada, and most of the Latin American countries. Notable exceptions in Latin Am, being Brazil where Sao Paulo airports are effected by on-going customs strike, and terminal congestion that is creating delays effecting both imports and exports. As well in Mexico, where Mexico city airport terminals are congested due to cargo back logs related to carriers being weight restricted and having to leave cargo behind. This due to unseasonable high temperatures combined with airport altitude and take off requirements.

Specific to the USA, the market labour situation in hiring of personnel is still a challenge impacted by shortages related to the Omicron variant. The overall terminal warehouse congestion continues to be difficult and creating delays in processing cargo with resulting effects on transit times and on time performance. Shortage of truck drivers and long lines at airports for pick-up or delivery cargo has created further problems with no multiple stop deliveries by individual trucks possible with a need for a separate truck per airline due to waiting times. Relative to market capacity developments the trans-Atlantic & trans-Pacific trade-lanes remain in high demand, and now effected by carrier scheduled changes related to the conflict in Ukraine, and Covid-19 related lockdowns in China, which has resulted flight cancelations into PVG.

Key trade-lanes intra-Americas as well under stress due to high demand. DB Schenker charter operations are in heavy use, as our expansive ‘flight operations’ network covering routes trans-Atlantic, trans-Pacific and intra-Americas, and is providing secure capacity for our customers, but as well effected on the transpacific routes into China by the city lockdowns.

Americas exports by trade-lane:

USA – Europe
→ Market demand for airfreight capacity remains very strong. Demand started to increase in the 1st quarter and continuing into the 2nd quarter with further challenges related to flight cancelations or re-routing of aircraft related to the conflict in Ukraine. Schenker has added additional charters, and along with our substantial scheduled flight operations, is supporting our customer’s needs. Flight operations: Weekly 747 freighter flights from Chicago, Rockford, Indianapolis & Atlanta to Frankfurt, Munich & Luxemburg, offer DB Schenker customers a stable and secure access to capacity.

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

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

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

→ Latin Am Exports: North American, Intra-Americas and European destination capacity continue tight. Destinations in China and India, continue as well to be a challenge. Brazil is reporting market backlogs to all regions, as well as severe delays in delivering cargo to heavily congested terminals in Sao Paulo: Resulting in missed bookings, and transit delays. In Mexico, Mexico City exports are effected by reduced payloads on flights due to a continuing heat wave: Aircraft forced to load less cargo, creating backlogs and transit delays. Mexico, Argentina, Chile, and Central American origins with continuing strong export demand vs available capacity.

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

(Apr 12, 2022) - The Russian invasion into Ukraine and the lockdown in the largest port Shanghai / China affect the market. The current ongoing logistic situation in Shanghai gets worse. The lockdown continues “indefinitely”. While ports still operate, the highways entrances were closed so that boxes could not be trucked from production areas. Shanghai port started to be congested by import laden containers. Imo cargo / dang goods had been diverted to other ports as the warehouse in Shanghai is full. Further lockdowns may be possible in ports like Ningbo and Guangzhou as number of cases arise. Though the Indian market is very strong, it cannot compensate missing cargo from China and or missing cargo for the former consumer market Russia. This cargo is missing and causes spot rate levels to continue to decline. It is expected that alliance will take consequences and idle capacity structurally if situation continues. On the Transpacific trade ex-Asia, the flows of consumer retail and electronic goods remain strong. Still reflected in high rate levels. Carriers are keen to avoid imbalances as much as possible, hence rate development in the backhaul trades could be expected unstable in the months to come. Overall, it is expected that Intra-Asia will continue to be the driving force for growth in Asia and Asia will remain the growth factor for world trade due to the increased speed of vaccination, increased dependence on intermediate goods and the industrial production.

Overall for 2022, market supply and market demand expectations point towards a delta in supply (supply around 3 - 4% vs demand of about 6%). While the total order book reads 5.8 Mio TEU, this might suggest an oversupply of capacity for 2023 / 2024, however impacts from the revised carbon emission regulation on the actual vessel capacity have not yet been considered.

Global Ocean Freight Market: Asia to EU and Noram: Capacity, Events, Rates Graphic

Despite spot rate levels to react to slight softening of the market, overall 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.

For 2022, overall, a modest market growth is expected. It is anticipated that all trades will show a positive growth between 1 and 5%, also the backhaul trades will be strengthened again. On the supply side however, the expected vessel deliveries of some 750,000 TEU capacity for 2022 remains behind last year’s numbers. The current idle capacity is a record low with 0.5%.

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.

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

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

(Apr 13, 2022) - All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Apr 12, 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

ANZ Cluster
→ There are no major changes from previous updates. There are still service disruptions to the local ocean freight market including terminal congestion and competition to secure vehicle booking slots.

India Sub-Continent Cluster
→ No major operational changes or updates from previous advisory on COVID-19 impact.
→ COVID-19 situation in China resulting in city wide lockdowns will have a ripple effect on multiple trade lanes, as trucking and cargo handling capacities due to workforce availability are being impacted at major China ports in Area South and East.
→ The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to mode conversions from Air and Land, as well as from sanctions imposed and compliance requirements.

Greater China Cluster

China East Area (including Shanghai):
→ Port operations continue but are faced with labor shortage. CFS in Pudong region are still suspended and are unable to receive any cargo.
→ Container depots in Pudong area lifted the lockdown. Trucks are allowed to arrange container pickup and delivery, while the drivers must hold valid negative nucleic acid test report with 48 hours validity. Since most of the truck drivers are under lockdown in residential areas, truck resources are extremely limited.
→ Surrounding cities of Shanghai have escalated control measures on trucks from / to Shanghai. Cargo pickup from and delivery into these cities are very constrained.

China South area (including Hong Kong SAR): The COVID-19 situation in Hong Kong SAR still remains critical. Cross border transportation with HK is severely constrained.

→ China North area: POL Dalian, only limited areas within Dalian city can arrange pick-ups / deliveries to the port. Pickups / deliveries from other locations in Liaoning Province are constrained.
→ Pickups Shenyang, Yingkou and Changchun are unable to be arranged.
→ Strict control measures imposed for inland pick-ups / deliveries to / from TXG port, since the pickups / deliveries in Beijing require traffic permit with 48-hour valid nucleic acid test report, vaccine record, and ‘green’ healthy code etc.
→ Pickups / deliveries in Langfang are constrained, and pickups from Weifang, Weihai, Zibo, Jining in Shandong province are constrained which cause bookings to be postponed and cancellation at Qingdao port.

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

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

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

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

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

  • Middle East/Africa 

(Apr 12, 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

(Apr 13, 2022) - Europe Land is fully operational and available for business, managing 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 

(Apr 13, 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.

Find the latest European Land Transport updates here.

Europe Land Transport Heatmap Graphic

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 

(Apr 13, 2022) - Our Domestic Land product continues to provide our regular high level of service across APAC. However, with extended lockdowns in China, services have been suspended in Shanghai and Beijing with extreme Driver shortages increasing lead times for cross province transport. The Shanghai lockdown has been extended with no published end date. We continue to closely monitor the local situations which could lead to delays.

Congestion remains problematic for our Asia Landbridge service out of, and into China. The main borders, PingXiang and DongXing were closed Mar 5 and Mar 11, respectively due to increasing COVID-19 cases. These borders remain closed. Truck scarcity continues to plague operations between Thailand and Malaysia as companies try and catch up with production. The remaining intra-Asia FTL / LTL road service is generally running to schedule.

Note that the Chinese government mandated substitute drivers are the only ones authorized to operate in border zones and come at an additional cost. Additional labor and associated domicile costs are also required to strategically avoid lengthy quarantine periods for our international drivers.

DB Schenker staff at Asia Landbridge border offices continue to ensure lead-times are minimized through “triage” prioritization.

However, Customers are strongly urged to coordinate any volume spikes with their DB Schenker Account Manager as early as possible.

Our newly launched rail service between Kunming, China and Vientiane, Laos is providing customers with an alternate mode to circumvent the unpredictability of the Chinese borders.

Border Gateway observations

Border Gateway observations

Congestion levels are improving on our Eurasia service for Rail and Road. Please refer below:

Border situation graphic

The war in Ukraine is expected to have both direct and indirect impact on operations and business in the near term, with trade compliance and sanctions coming into effect as well. Please do refer to Ukraine Crisis Update | DB Schenker in Europe for updated information.

We strongly recommend checking estimated lead times with your DB Schenker Account Manager.

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

General APAC Region SITREP

ANZ Cluster
→ There are no major changes from previous updates. Temporary strains persists on staffing resources.

India Sub-Continent Cluster
→ No changes from previous updates. COVID-19 containment measures are easing. Operations are running smoothly for PAN India

The ongoing war in Ukraine will also have a significant impact on capacity, operations, costs, due to mode conversions from Air, as well as from sanctions imposed and compliance requirements.

Greater China Cluster

China East Area (including Shanghai):

For cross province truck deliveries in Jiangsu and Zhejiang, longer lead times are expected.

More and stricter traffic restriction measures have been issued in Suzhou, Kunshan and Taicang.

Driver availability to / from Changzhou and Zhenjiang has reduced to 20% - 30% as more restrictions have been imposed.

With shortage of trucking drivers and truck capacity, the transportation, including pre-carriage, on-carriage, as well as domestic transportation & international land-bridge, etc. are affected by the COVID-19 prevention and restriction measures announced by the government associations. Delays are expected.

China South area (including Hong Kong SAR): COVID-19 situation in Hong Kong SAR remains critical still. Cross border transportation with HK is severely constrained.

Asia LANDbridge services are suspended because the PingXiang and DingXing borders are still closed.

China North area: Some cities, including Changchun, Jilin city, Shenyang, Tangshan, are in lockdown. DB Schenker employees in these cities are working from home.

Pick-up and delivery are constrained in some locations where around Qingdao within Beijing, Hebei, Shenyang and Shandong area. COVID-19 tests with a 48-hour validity are mandatory for drivers who pick up cargo in those areas.

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 updates for South East Asia and North East Asia Cluster countries.

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

  • Middle East/Africa 

(Mar 30, 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. Additionally, in Saudi Arabia, the government has revised regulations on truckage leading to a reduction in truck availability. 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.

  • Americas

(April 11, 2022) -

→ USA: Carriers are operating as normal. Truckload capacity is loosening.
→ Brazil: Commercial activities are working normally. Customers are working normally.
→ Canada: Carriers and customers operating normally.
→ Argentina: Commercial activities are working normally. Commercial activities are working normally. Borders are experiencing big delays due to COVID-19.
→ Chile: Suppliers and carriers are working normally.
→ Mexico: USA FSC increase.

  • Global

(Apr 13, 2022) – While situation stays volatile, especially in APAC region, we see some decreasing restrictions in Europe, Americas and MEA. Our operations and customer services remain stable. There is no change in monitoring the situation in all regions very closely to remain agile. We continue prioritizing the protection of our staff and having dedicated labor management to keep our customers’ businesses running. Also, we do continue to focus on dedicated guidelines and preventive measures, having 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

(Apr 13, 2022) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific

(Apr 12, 2022) - The following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

ANZ Cluster
→ There are no major changes from previous updates. Temporary strains on staffing resources persists.

India Sub-Continent Cluster
→ Operations at our sites in the country are running smoothly, ensuring all COVID-19 safety protocols, sanitization, and hygiene of areas are regular.

Greater China Cluster

China East Area (including Shanghai):
Warehouses located in the lockdown areas in Shanghai have been closed. 

Delays are expected.

China South area (including Hong Kong SAR): COVID-19 situation in Hong Kong SAR remains critical still. Cross border transportation with HK is severely constrained.

China North area: Some cities, including Changchun, Jilin city, Shenyang, Tangshan, are in lockdown. DB Schenker employees in these cities are working from home.

Pick-up and delivery are constrained in some locations around Qingdao, within Beijing, Hebei, Shenyang and Shandong area. Covid tests with a 48-hour validity are mandatory for drivers who pick up cargo in those areas.

Our warehouses in lockdown cities are closed.

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

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

While governmental imposed restrictions in APAC countries continue at varying levels, our service levels so far are maintained with our CL operations available to support prevailing customer needs, in compliance with local regulatory requirements. Delays may be expected due to availability of workforce and enforced hygiene and monitoring SOPs. Should there be any specific account operational effects, updates will be provided to our DB Schenker Account Management teams where necessary. We recommend being in close contact with your DB Schenker Account Managers for any further details or further support if necessary.

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

  • Middle East/Africa 

(Mar 30, 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

(Apr 11, 2022) - Our warehouses continue to operate with precautionary measures in place for the health of our people and hence keeping up our customer services. 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 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 April 27, 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.