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DB Schenker Air Freight Intermodal Solutions Airplane Inside Loading

Customer Advisory COVID-19 Global Update

Apr 6, 2020

Please find here the most recent edition of the COVID-19 global customer advisory update (issued twice a week), targeted to give you guidance and orientation.

NEW: Starting this week you find an additional 24/7 newsfeed on our website. This service should allow to keep you informed around the clock with the most recent developments worldwide. You will also find links and downloads supporting areas of this advisory. Stay informed at 24/7 News Update

Your account team is continuously updated about the evolving situation and our solutions on how to react to it. Please continue to be engaged with your account managers on your latest plans, prices, and projections. They will invest the utmost effort to support your business.

Global Market Updates

  • Global

(Apr 6, 2020) - Restrictions across and in many countries are further increasing. The governments of Singapore and Dubai just took additional measures to fight Corona-infections. The airfreight market has shown no impact yet as the supply of goods remains critical at this time. Airfreight carriers are introducing further passenger cargo flights supporting to keep goods moving across the global supply chains. COVID-19 has yet led to a significant change in supply and a total global capacity decline of ~35% year-on-year and as much as ~50% decline on the Transatlantic trade. This decline in capacity is not a challenge of one specific region or country, but a global challenge caused in the drastic decline of international passenger flights and passenger demand.

What we have done to support you:

Our console charter flight schedule now includes the following flight operations:

➢ Europe – China – Europe: 3 flights per week (B747-400F)
➢ Hongkong – Europe: 2 flights per week (B747-400F)
➢ China – USA: 3 flights per week (B747-400F)
➢ Europe – USA – Europe: 3 flights per week (MD11F and B747-400F)
➢ USA – Australia: 1 flight per week (B777F)
➢ Europe – India – Europe: 1 flight per week (B747-400F)

Further additional flights are being worked on to increase the console charter flight operations within the next two weeks in critical markets to support your supply chains and demand. Please contact your account manager or local DB Schenker teams for further details.

  • Europe 

(Apr 06, 2020) - All offices remain in full operation with access to terminal handling and ground transportation. All our European hubs deliver import and receive export freight with no backlogs recorded over the weekend. Operationally, our linehauls to and from the hubs remain on time. In some areas, our cross-border trucks still experience delays.

Especially demand for China imports remain at an all-time high, mainly due to very strong demands in medical supplies, protective gears and face masks which DB Schenker continues to support with the utmost priority.

  • Asia Pacific 

(Apr 06, 2020) - There are no significant updates in status from the previous advisory.

An increasing number of countries in Asia are implementing lockdowns (or extending existing) in their respective countries, causing more constraints and limitation in manufacturing and movement of goods.

While some airlines have injected Pax flights capacity into the market, these are still insufficient to cater to the market demands.

Charter request continues to be high with strong demands also for the purpose for medical supplies, PPE, etc., which DB Schenker continues to support.

(Apr 02, 2020) - For India, airfreight operations remain accessible for both import and export activities, including customs clearance. However, capacity remains constrained at less than 30%. We have put in place charter programs planned for April 2020. Do get in touch with your Account Managers for further details.

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

  • Middle East/Africa 

(Apr 06, 2020) – With effect from April 6, Emirates Airlines will start outbound passenger service from the UAE on selected routes. Initial flights will commence from Dubai to London Heathrow, Frankfurt, Paris, Zurich and Brussels, with four flights a week to London Heathrow, and three flights a week to the other cities. The airline will also carry belly-hold cargo in both directions.

(Apr 02, 2020) – Belly capacity constraints remain as passenger services continue to be suspended in many other MEA countries. But, DB Schenker in the region can manage the current demand with available cargo capacity. Please note, airlines have withdrawn the contract rates until the situation resumes back to normal.

(Apr 02, 2020) – In addition to inbound / outbound freighters, airlines are now introducing passenger-cargo flights to support the current market demand. Please get in touch with your Account Manager for more details.

Overall, our air freight operations in the countries remain uninterrupted as we continue to serve customers. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.

  • Americas 

(Apr 06, 2020) - USA - China

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

(Apr 06, 2020) - USA to Asia (excluding China)

➢ TH, KR, SG, and JP tight with some backlogs.

➢ USA to IN, OZ and AU critical. Passenger services have been suspended for the most part with freighter operations at capacity with some backlogs reported at transit hubs. Pricing at a premium.

(Apr 06, 2020) - USA - Europe

➢ Market demand is moderate to strong. Going into April, the impact of the continuing cutback in passenger capacity is having its expected effects.

➢ We are making full use of our alternative capacity on the freighter flight operations 3 x week ex. ORD and ATL to FRA.

(Apr 06, 2020) - USA - Latin America / Latin America to Europe & APAC

➢ Passenger services have become significantly reduced as in the other tradelanes after governmental ordered quarantines, and restrictions on foreign entry have been put in place. Import demand to Latin America, is down and freighter capacity is enough to maintain services at slightly elevated pricing.

➢ Transit delays possible at airport / carrier terminal operations.

(Apr 06, 2020) - Airline Terminals Cargo handling

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

  • Global

(Apr 06, 2020) – As expected, carriers reacted quickly to the dropping demand on volumes and thus a global blank sailing program emerged quickly during the course of last week. More than 200 blank sailings have been announced so far. This stretches over all alliances and over all trades. The program also includes many smaller trades apart from the typical prominent ones, e.g. HLL’s operated (but not limited in use by HLL only) Intra - EU Gothenburg Express linking Hamburg with Denmark, Sweden, Norway: The service is suspended for the next six weeks. Capacity on trunk routes in average have been cut down by 20-25% over the next four to six weeks.

Ocean Alliance carrier CMA-CGM started to slow steam and has sent the first vessel around Africa (eb), using 6 days more transit time in an attempt to save costs on one side and provide a longer transit on the other side.

A month worth of inventory is still on the vessel towards the cargo receivers. In order to prevent boxes clogging up the ports and causing congestion, several carriers have officially launched a delay in transit options. Boxes can be kept in yard storage in defined transshipment ports in order to avoid (higher) costs at destination due to operational obstacles at the receiving end.

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

Our advice for ensured uplift and forced delay of cargo:

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

  • Europe 

(Apr 06, 2020) - There is a very strong export booking situation in the market which is foreseen to come to an end due to PO cancellations starting as well as factory production sites closing down. The closing of private and public sectors all over Europe has started to affect port productivity. However, no impact on port operations reported. Vessel utilization is at 100% with roll-over scenarios during March and early April; rates have moved up significantly on trades to the East. Weeks 15-20 show dramatic capacity decreases of up to 54%. Significant capacity increases follow during weeks 21-23, however these services are under carriers’ review and we have to anticipate severe service changes. All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific 

(Apr 06, 2020) - The lockdown in India is causing heavily congested ports and many customers are currently not receiving or devanning containers. Furthermore, the truck driver availability in India is still critical. Bangladesh has announced additional public holidays from now until April 13 to reduce travels and enable containment of the virus. Domestic transportation will be stopped for this period.

Singapore is also enforcing further restrictions from Tuesday, April 7 to May 4, but our ocean operations will continue with work from home and with skeleton crews in the office to handle shipment processing. Customers are encouraged to use seawaybills to avoid reliance on original B / Ls as courier companies may not deliver timely in the coming weeks.

For shipments to and from the Philippines, we discourage the use of Manila North Port due to severe congestion expected in the following days. Also delays in customs clearance in the PH is expected as a direct impact of COVID-19 infections.

  • Middle East/Africa 

(Apr 06, 2020) - 95-100% vessel utilization out of Asia to MEA due to pre-Ramadan rush. Also, strong utilization is seen ex North America to MEA.

(Apr 06, 2020) - 100% vessel utilization ex MEA especially to EU and North America has led to increased rates, PSS application and equipment shortage in all ports:

Especially Oman is concerned as well as 20’ supply in UAE. Priority is given to perishables. All port operations are working fine. Our ocean freight offices in the countries continue to serve customers since logistics and supply chains are considered business critical as per local government directives. Moreover, we are closely monitoring the situation as the Ramadan season is around the corner.

(Apr 06, 2020) - As an alternative for airfreight and land transportation in GCC, DB Schenker is offering weekly less-than-container load (LCL) consoles from the port of Jebel Ali (AE JEA) to Abu Dhabi, Bahrain, Kuwait, Oman, Pakistan, Qatar, and Saudi Arabia.

  • Americas 

(Apr 06, 2020) - TPeb bookings start to drop, however vessels during week 15 and 16 are still well utilized: First additional blank sailings to kick-in during week 15. No high hopes for the PSS / GRI announcements the week of April 15 and May 1.

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

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

  • Global

(Apr 06, 2020) - Europe Land is fully operational and available for business, managing constraints and challenges in several countries. Asia, with a heterogeneous picture: China is getting back to normal while other countries are facing increasing challenges yet operating. India with lockdown affecting also cargo flows. Asia land bridge as well as Eurasia land bridge are fully operating. Land operations in the Americas are now also showing constraints, but still working close to normal.

  • Europe 

(April 06, 2020)

Transportation of all goods by DB Schenker is not restricted by travel restrictions for most of the countries. For any potential cases of disruptive conditions, we follow our predefined contingency plans to ensure flows of cargo as much as possible. In case lead times and / or costs cannot be secured selectively, we kindly ask for your understanding. System Premium shipments are still accepted and will be handled with highest priority and fastest possible lead times. Nevertheless, we ask for your understanding that, under the given circumstances, we need to suspend the money back guarantee of our System Premium product until further notice. As some receivers closed their operations, we ask all shippers to check the delivery possibility with the consignee. DB Schenker reserves the right to send back shipments that cannot be delivered and charge the return accordingly or charge for storage in our warehouse.

  • Asia Pacific 

(Apr 06, 2020) - There are no significant updates in status from the previous advisory.

China land transport recovery up to 85%, with Wuhan to reopen on April 8. Vietnam, Thailand, Malaysia, and the Philippines operate below pre-COVID-19 levels.

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

(Apr 02, 2020) - For India, land transport is functioning at 20–25 % capacity (across FTL, LTL & FCL). Drivers are facing a challenging environment, being subject to possible penalties and seizure of vehicles from the authorities due to documentation or other exigencies.

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

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

  • Middle East/Africa 

(Apr 06, 2020) - The Prime Minister of Egypt has imposed a curfew with effect from March 25. Trucks will not be allowed on the main highways during such hours (7 pm - 6 am daily). DB Schenker in Egypt has an appropriate business continuity plan in place to adhere to such restrictions. Please get in touch with your Account Manager for more information.

(Apr 06, 2020) - Complete lockdown in South Africa for 21 days with effect from March 27. Operations for food, medicine, and critical products will continue. DB Schenker in South Africa is a certified logistics service provider under essential services and will be operating during the lockdown.

(Apr 06, 2020) - Land distribution to GCC and Levant countries (via Saudi Arabia) have been suspended for general cargo. The commodities exceptional to this rule are food items, medical items, military / relief / aid items.

  • Americas 

(April 06, 2020) - USA: Capacity is available, however, certain regions at premium.

Mexico: Running normally with capacity (US / MEX / CAN / C.A.). Cross-border still open and running. Sea drayage have less volumes.

Canada: Operations mostly running normally.

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

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

  • Global

(April 06, 2020) - There are no significant updates from the previous advisory. All life supporting sites remain fully operational on a global scale. Still we continue noticing fluctuating volumes and hence appreciate the ongoing and close conversations with our customers.

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

For customers, that are looking for additional space, we are closely monitoring available space to support our customers, e.g. absorbing potential backlogs.

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

The protection of staff continues to be our focus. We are monitoring and coordinating through stand-off management and on-site supervisions, a safe and productive site management method to maximize available resources and protect our workers from secondary contamination.

  • Europe 

(April 06, 2020) – All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

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

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

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

  • Asia Pacific 

(Apr 06, 2020) - There are no significant updates in status from the previous advisory. Singapore announced enhanced restrictions on April 3, termed as a ‘circuit breaker’ measures, to be effective from April 7 to May 4. As Logistics & Supply Chain related transports and services are categorized as ‘Essential Services’ there is no major impact to operations. Similarly, for Indonesia, which announced enhanced restrictions primarily on civilian movements, with logistics and freight exempted from impact.

The Japanese government has just declared a state of emergency covering greater Tokyo and Osaka area (incl. Kanagawa Saitama, Chiba, Hyogo, and Fukuoka prefectures) from April 7 to May 06. Our Logistics activities are not affected. More details and its impact (if any) on logistics operations will be made known as it happens.

(Apr 02, 2020) - New Zealand has moved to Level 4 (highest) nationwide lockdown until April 23, with only essential services (of which logistics and transport qualify) permitted to continue operating (within stringent limits) in order to support essential businesses. India continues to be impacted the most, with the Philippines second most constrained.

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

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

What we’d like to ask of our customers:

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

  • Middle East/Africa 

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

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

  • Americas 

(April 06, 2020) - Overall, region Americas daily staff is coming to work, and our capacities are at normal levels.

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

The United States is further extending social distancing through April 30. Our essential business continues to operate normally.

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

Argentina has announced an extension of the closing of businesses. This announcement has been extended through April 13. At this point, our sites will reopen. Argentina non-essential operation by government definition remains closed until April 13. Essential business remains open.

  • Global Projects & Industry Solutions

(Apr 06, 2020) - The number of requests for solutions related to break bulk shipments is still high as various transport options are evaluated by customers in various markets. Despite cancelled liner sailings, in some trades, break bulk shipping capacity with multi-purpose vessels (MPP) is still widely available. Bookings can be placed for break bulk, out-of-gauge cargo, but also for cargo types, which are normally transported containerized. Operational delays are expected following various lockdowns and restrictions announced. In addition, quarantine measures are in place for various ports which have an impact on lead time and costs.

Our dedicated Global Projects & Industry Solutions teams around the world are fully operational and help clients develop customized transport solutions for all break bulk or out-of-gauge shipments or any other project shipment independent of markets and trade lanes.

  • Fairs, Events and Special Logistics

(April 06, 2020) - With the majority of fairs and events worldwide being postponed or cancelled, we understand the strain on event organizers, exhibitors, participants, and contractors. We are in close contact with the leading organizers and associations worldwide and continue to monitor all developments closely.

Our Global Fairs & Events Service Center is available to answer all your questions and assist you in all situations with tailormade solutions.

Reach out and contact our colleagues at customerservices.fairs@dbschenker.com

Update: Expo2020 Dubai

The UAE government has officially requested the postponement of Expo 2020 Dubai to October 2021 due to the ongoing COVID-19 outbreak. The formal decision will be made in June, but we do expect a postponement to next year. We will keep you updated. Our Expo 2020 team in Dubai is ready to support you with all logistic challenges a postponement will have. Please contact us if you require any kind of advice or support.

Update: Sports Events

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

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

DB Schenker Organizational Update

DB Schenker is closely monitoring the COVID-19 situation. With precautionary measures in place, we are aiming to maintain full operability across all DB Schenker operations. In our offices across all continents, we have taken action to enable as many employees as possible to work from home to help instill the social distancing guidelines put in place by public authorities or the government in many countries. Our first priority is the health of our employees and partners. We adhere to the recommendations of health experts, especially WHO, related to, for example, hygiene precautions.

We will continue to provide you with updates twice a week with the next customer advisory to follow on April 9 or earlier should there be significant developments.

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

COVID-19 Customer Advisory Global Update – Apr 2, 2020

COVID-19 Customer Advisory Global Update – Mar 30, 2020

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.