DB Schenker Air Freight Intermodal Solutions Airplane Inside Loading

Customer Advisory on COVID-19

We are closely monitoring the Novel Coronavirus (COVID-19) situation. This page provides an update on how the quickly evolving situation may affect our operations. Please contact your local DB Schenker branch for detailed information. For more details about the COVID-19 situation in other countries, click here.
 

Mar 23, 2020

Updates from South Korea

Personnel Updates:

There are no reports of COVID-19 infections among our DB Schenker workforce. 

Operational Updates:

Market Updates:

There is no significant update since the last advisory. 
 
In general, Air Freight is encountering serious capacity issues on all trade lanes due to massive cancellation of passenger flights. Extensive implementation of blank sailings is also largely impacting rates and capacities of Ocean Freight. There is no major issue to Contract Logistics and Land Transport. 
 
We will continue to monitor all stakeholders of respective modes. 
 
This is the last regular update since recent changes have been marginal. We will provide an update as soon as major change occurs in the future. 
 
Thank you for your understanding and support. 

Updates from South Korea

Personnel Updates:

There are no reports of COVID-19 infections among our DB Schenker workforce. 

Operational Updates:

Market Updates:

There is no significant update since the last advisory. 
 
In general, Air Freight is encountering serious capacity issues on all trade lanes due to massive cancellation of passenger flights. Extensive implementation of blank sailings is also largely impacting rates and capacities of Ocean Freight. There is no major issue to Contract Logistics and Land Transport. 
 
We will continue to monitor all stakeholders of respective modes. 
 
This is the last regular update since recent changes have been marginal. We will provide an update as soon as major change occurs in the future. 
 
Thank you for your understanding and support. 

Updates from South Korea

Personnel Updates:

There are no reports of COVID-19 infections among our DB Schenker workforce.

Operational Updates:

Status details can be referred to from the dashboard below:

Market Updates:

Air Freight

  • Rates - for APAC (Greater China + other Asian countries), for new business or spot always double check rates and space with our capacity planning team as the market situation (supply and demand) is unstable and is expected to change without prior notice; for existing business our account management will reach out to you to discuss possibilities of uplift and rates
  • Greater China Market
    - No update since the last advisory
  • APAC Market
    - No update since the last advisory
  • EMEA Market
    - More carriers cancelled PAX flights and there could be more PAX cancellations in future. Big impact to supply is expected in Mar.
    - Effective on Mar 01, no entry of Korean flight into Turkey (except ferry flight) is allowed.
  • American Market
    - More carriers cancelled PAX flights and there could be more PAX cancellations in future. Big impact to supply is expected in Mar.

Ocean Freight   

  • China Market
    - Ports remain clogged with more than double of average amount of cargo waiting for unloading
    - Shipment of dangerous goods containers to Shanghai port resumed since this week
  • Trans-pacific Market 
    - No update since the last advisory
  • Far East / Westbound Market 
    -More than half of carrier departures are being cancelled

Land Transportation

  • No update since the last advisory

Contract Logistics

  • No update since the last advisory

Fairs and Exhibitions

  • Some exhibitions planned to be held in March and April were cancelled or postponed. Please refer to the previous advisory for last updates.
    - World team table tennis championships Busan (Mar 22-29): Postponed to Jun 21-28

Customer Advisory on COVID-19: Updates from South Korea

Personnel Updates:

There are no reports of COVID-19 infections among our DB Schenker workforce.


Operational Updates:

Status details can be referred to from the dashboard below:


Market Updates:

We are monitoring all stakeholders of the respective modes, and this is an update as of Feb 28 th .

Air Freight

  • Rates - For APAC (Greater China + other Asian countries), for new business or spot always double check rates and space with our capacity planning team as the market situation (supply and demand) is unstable and changing without prior notice; for existing business our account management will reach out to you to discuss possibilities of uplift and rates
  • Greater China Market
    CN and TW supply is extremely tight
    HKG space situation is very tight and will worsen with most PAX flights being cancelled as of MAR 1st
  • APAC Market
    The situation is drastically worsening with more flight cancellations to various destinations.
  • Europe / US
    There is currently no major impact except some cancellations of PAX
    flights; some countries and airlines are reviewing PAX schedules,
    which will impact capacity


Ocean Freight

  • China Market
    Overall market volume has greatly decreased on both exports and imports,
    ocean freight between KR-CN continues at low level (Specifically, in Feb,
    traffic at Incheon port dropped by 28% YoY), whereas the capacity is stable
    regardless of blank sailings by many carriers.
  • Trans-pacific Market
    No update since last advisory.
  • Far East / Westbound Market
    Maersk has cancelled six Asian service sailings to North and South
    America; Space supply is getting tight and schedule delay of around
    one to two weeks is experienced.


Land Transportation

  • Guidelines were issued to our trucking vendors for preventive measures for
    COVID-19


Contract Logistics

  • No implications at this moment


Fair Logistics

  • Some exhibitions planned to be held in March and April were cancelled or postponed.
    ▪ SECON (Int’l Security Exhibition & Conference, 18-20 Mar, Kintex): Postponed to Jul
    ▪ SPOEX (Seoul Int’l Sports & Leisure Industry Show, 27 Feb-1 Mar,COEX): Cancelled
    ▪ KORTEX (Korea Int’l Textile Machinery Exhibition, 4-6 Mar, Daegu): Postponed
    ▪ Preview in Daegu (4-6 Mar, Daegu): Cancelled
    ▪ Green Energy Expo (1-3 Apr, Daegu): Postponed to July

The next update will be provided on 3rd March or earlier should there be significant updates.

Updates from South Korea

The Korean government has raised the alert level to “RED” on Feb 23. Our greatest concern is the health and safety of our employees and their families, we will therefore adjust our operations in accordance with the government guidelines and the general situation. Our management team and all stakeholders are working on sustainable solutions to ensure operation under the present circumstances. Please contact your local DB Schenker branch for detailed information.
 

Personnel Updates:

There are no reports of COVID-19 infections among our DB Schenker workforce.


Operational Updates:

Being the first working day of the “RED” alert level, we are monitoring the airports and sea ports and will keep you updated.

Status details can be referred to from the dashboard below:


Market Updates:

Air Freight

  • For APAC (Greater China and other Asian countries), please always double-check rates and space with our CAPA team as the market situation (capacity and rate) is unstable and changes without prior notice.
  • Greater China Market
    Steep rate increase for PVG; other destinations differ depending on available space and demand.
    Capacity (both PAX/FTR) to CN including TW/HK was greatly reduced (approx. 50%).
    Cargoes are concentrated to certain CN destinations (PVG, CAN, TSN, etc.) where FTRs are operated; presently there are huge backlogs including cargos from EU/US.
    Rate and space issues are experienced for HKG freight.
  • APAC Market
    Belly capacity (PAX) to certain Asian countries (SG, VN, ID, etc.) has been reduced; potentially there may be more reduction to include other APAC countries. Rate increase is expected in the near future.
    SQ will stop SQ 611 (ICN-SIN) as of Feb 25, this will lead to capacity constraints and rate increase for SG and transhipment cargoes.
    VN (Vietnam Airlines) downgraded (into narrow body) all flights to HAN/SGN untill Mar 15.
  • Europe / US
    Currently, there is no major impact; we will continue to monitor the status and update should the situation change.


Ocean Freight

  • China Market
    Overall market volume has greatly decreased on both exports and imports. Ocean freight between KR-CN continues at low level, whereas the capacity is stable regardless of blank sailings by many carriers.
  • Trans-pacific Market
    Holiday has been extended and carriers are adding more blank sailings.
    Carriers are charging Port Congestion Surcharge on live reefer containers into Shanghai, Tianjin Xingang, Ningbo ports.
  • Far East / Westbound Market
    Capacity has decreased by about 25% to 30% for both west and east bound due to blank sailing services by carriers.
    There are cases of delay of EU import schedules due to the lack of berth capacity in Busan port.


Land Transportation

  • No significant impact is expected for trucking services nationwide.


Contract Logistics

  • Currently, we are operating at full capacity at all DB Schenker facilities. No significant impact is expected on transportation and order fulfilment.


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