September 15, 2021
Please find here the latest edition of our COVID-19 global customer advisory update. Thanks to growing vaccination coverage parts of the world continue to move towards more regular conditions of business. However, with the spread of new mutations we do also see countries and regions hit by new waves of outbreak, provoking countermeasures with significant impact on lives and businesses.While improving, we expect the conditions under which we all operate will continue to be disruptive and far from normal. We look forward to continue our update services as long as the global pandemic influences 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.
Executive SummaryAir Freight
Fairs, Events and Special Logistics
The market demand for air capacity remains strong as we are heading forward. For the time being, Europe remains the largest exporter of COVID-19 vaccines from a demand perspective, Western Hemisphere as well as certain countries like Israel announced and started the third vaccination campaign for the elderly from August 2021.With the increasing number of emergency approvals and the planned production capacity (from 12.9 billion doses to 42.2 billion doses – as per UNICEF), we do observe an increase of COVID-19 vaccine production which will require increased distribution capacity. The situation in China also exacerbates the overall tension on the available capacity in the market. Countries that are today already involved in the healthcare sector are also highly involved in this increase in demand. This is a combination of either ingredients required to produce the vaccine or the finished vaccine itself.Vaccine supply to the southern hemisphere is slowly showing some traction with humanitarian programs such as COVAX, GAVI or HOPE, however still at a much slower pace than expected. Even though shipments are limited, logistics challenges are far greater than in more developed countries as destinations are more difficult to reach due to extremely limited cargo capacity.All supply chain partners will be required to closely collaborate to support the distribution and mitigate potential negative impacts or disruptions through the end-to-end transportation.For successful distribution, storage, repacking, and administration of a COVID-19 vaccine, additional medical supplies are needed – including needles, syringes, alcohol prep pads, surgical masks and face shields, gloves, mixing kits and additional PPE. Being part of our integrated end-to-end healthcare services DB SCHENKERlife+ with licensed and regulated facilities, alongside dedicated and qualified staff, we offer all conceivable warehousing services to handle medical devices and PPE, while supporting respectively institutions and industries globally.
(Sep 14, 2021) - The airfreight market and dynamics are accelerating again as market demand continues to rise and supply chain levels are limited considering the availability of freighter aircraft and high cost related to passenger freighter flights. Therefore, the market does remain congested as international long-haul passengers do not return into the market with another pandemic impact caused across various key economies. The dependency on airfreight freighter operators and flights therefore remains high with no larger increase in PAX flights into Q4 / 2021. Especially with the market heading into peak season, the outlook therefore remains very uncertain how to manage the additional volumes without having to largely utilize high yield-based passenger freighters and cargo flights from commercial airlines. Considering the high utilization of freighter aircraft, this is the only possible solution to add additional capacity supply during the peak season.Freighter aircraft operators have therefore already started to conduct the required maintenance checks during the summer season. This will allow to deploy the full fleet during peak season to provide maximum capacity into the last quarter of 2021.The market is therefore expected to remain congested also considering the large impact of mode shift from ocean to air. Especially with a continuous increase of critical shipments being converted to airfreight, there is a significant increase in large shipments in the market that requires access to freighter capacity. This will cause further congestion to the existing market imbalance of supply vs demand with no improvement in sight as the market is heading into peak season and an increase of consumer-related products as well as strong demand in e-commerce.Probably the most critical point in the supply chain therefore will be the reliability of the ground handling operations to ensure goods that are transported by airfreight are quickly turned around and made available to shippers. The situation in this specific aspect has recently been of a negative nature, impacted by increasing COVID-19 cases. The COVID-19 cases initially started to increase in key economies in Asia Pacific such as China and Vietnam but is now catching up as well in Europe and North America. This is likely to lead to further operational impacts and delays due to an increase of COVID-19 cases in the workforce of key handling areas and the logistics sector. In some markets, for example in the US, the situation is already rather critical as ground handling and warehouse capabilities are reaching the highest capacity utilization levels. A further negative impact on the operational situation in the US has the implementation of the new physical screening effective July 1 that is causing delays. All cargo that is transported on freighter flights is now required to be screened similar to freight that moves on passenger flights. A large amount of freight is still handed over unscreened, thereby causing delays of the throughput times.
Our DB Schenker own controlled network includes flights on following routes:
→ Fueled with SAF: Frankfurt (FRA) – Shanghai (PVG) – Frankfurt (FRA)→ Beijing (PEK) – Frankfurt (FRA)→ Chicago (ORD / RFD) – Seoul (ICN) – Shanghai (PVG) – Chicago (RFD)→ 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 (ORD)→ Hongkong (HKG) – Frankfurt (HHN)→ Hongkong (HKG) – Los Angeles (LAX)→ Liege (LGG) – Shanghai (PVG) – Luxembourg (LUX)(Note: This includes trucking to/from CGO-PVG / PVG-CGO)→ Luxembourg (LUX) – Indianapolis (IND) – Luxembourg (LUX)→ Munich (MUC) – Chennai (MAA) – Munich (MUC) – Chicago (RFD)→ Shanghai (PVG) – Chicago (ORD)→ Shanghai (PVG) – Frankfurt (FRA)→ Shanghai (PVG) – Singapore (SIN) – Sydney (SYD)→ Zhengzhou (CGO) – Frankfurt (HHN)→ Zhengzhou (CGO) – Amsterdam (AMS)
More detailed information on this new flight schedule can be found by clicking here.
(Sep 14, 2021) - 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 towards the weekend. Operationally, our linehauls to and from the hubs are running as scheduled.
→ Please get in touch with your DB Schenker Account Manager for more information.
(Sep 14, 2021) - Apart from China, there is no reported impact on operations due to COVID-19, with status largely remaining unchanged.
The situation in most countries is stabilizing. We continue to closely monitor all countries in the region, with particular attention on Vietnam and China.
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Spotlight: Greater China Update
Following the stringent containment measures severely constraining workforce capacity instituted by the authorities, the situation in Shanghai’s Pudong Airport (PVG) operations continues to be affected.
The '14/7/7’ rule remains in effect without exception. Backlog of cargo at PVG continues to be an issue.
Capacity & Operations situation (as of Sep 14):→ PVG Terminal is closed till Sep 15 due to approaching Typhoon Chanthu. All flights aregrounded and no cargo can be lodged.→ Waiting times at the terminals are increasing for import cargo.→ Current waiting times at BJS are approximately 20 days.
As the situation evolves quickly, updates will be provided to our account management teams on a frequent basis. We recommend being in close contact with your DB Schenker Account Managers for any further details.
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Delays are expected. Our priority is still focused on the health and safety of our workforce, while mitigating the operational impact where feasible. This underscores the continued risk on operations and the vigilance necessary to cope with the ever-present COVID-19 situation.
Our air freight operations remain available to support customer needs. Control measures remain in effect. Delays / backlog may be expected in customs clearance and transportation. Alternatives to move / transport cargo via other gateways / routes are being established and stop-gap measures for labor / driver 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. We remain vigilant in monitoring the situation to mitigate events with potential impact to operations. 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.
(Sept 14, 2021) - 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).
No operational restrictions for air cargo business
Angola, Bahrain, Egypt, Kenya, Namibia, Mozambique, Oman, Qatar, South Africa, Saudi Arabia, UAE
(Sep 14, 2021) - Market situation remains challenging. Carrier capacity is still problematic on most trade lanes with continued strong demand as we begin to enter what is anticipated to be a very strong “peak season” that will run till the end of the year. Specific to the USA market, airport terminals remain congested, suffering from a continued lack of personnel; a slow-down of processes on the export side related to IACO security scanning requirements that went into effect in July, and volume movements higher than that found pre-pandemic. Imported cargo being slow to be released and export cargo often delayed in being received. The general labor shortage found in various sectors of the US economy fully effecting transport logistics. Specific to the Transpacific trade lane, challenges with Chinese airport terminals, and most importantly in Shanghai have created market cargo backlog imports as well as exports.With continued volatility in available capacity in the market, and challenges at the airport terminals, DB Schenker’s own controlled flight network both Transatlantic and Transpacific is providing secure space for our customers. Our airport-based offices are providing the necessary coordination to provide the fastest transition of cargo possible. Our Rockford (RFD) gateway is supporting our flight operations into the mid-west / Chicago area and providing an excellent alternative. DB Schenker is now in a newly constructed RFD airport facility ‘ramp’ side to the aircraft with 30,000 sqft (2.800 m2) of warehouse space. This to be expanded with 100,000 sqft targeted for 2022: DB Schenker’s further investment and commitment in its own flight operations network.
Americas exports by trade-lane:
USA – Europe
→ Market demand continues moderate to strong from the USA. DB Schenker is maintaining its five 747 freighter flights per week as part of its Global Flight Operations Program. The flights are operating from Atlanta and Chicago-Rockford to Frankfurt and Munich, as well as from Indianapolis to Luxembourg. They offer DB Schenker customers a stable and secure access to capacity in what continues to be a volatile market situation.
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, as well as 747 freighter flight operations two times per week from Chicago ORD / RFD to Korea (ICN), that continues on to China (HKG as alternate for PVG) during current market situation.
DB Schenker is as well adding ad hoc charters to Australia and Singapore to support customer demand for capacity.
USA – Asia (China Specific)
→ Chinese governmental protocols for combating COVID-19 have affected the amount of cargo that can be processed at key airport gateways, resulting in carrier flight cancelations, and reduced schedules. This in the face of strong demand in exports from the USA to China. Market backlogs have developed with accompanying transit delays.DB Schenker as part of its own controlled flight network maintains 747 freighter flights from ORD / RFD. Use of HKG for landings has substituted for PVG, during the current terminal difficulties at that airport. The flight operations occur 2x per week. DB Schenker has devised alternate airport transit options as an alternative to bypass destinations with the greatest challenges and has introduced ad hoc charters where and when needed.
USA – Latin Am / Latin Am to Europe and APAC
→ Intra-Americas: Capacity is in strong demand with market backlogs effecting all major origins and destinations. Challenges related to freighter carriers schedule fluctuations continue. Passenger flights continuing to be well below pre-COVID-19 levels. This situation is affecting all transit between North and South America as well as Central America. Ad hoc charters have been introduced to alleviate especially the Brazil trade lane as capacity has become critical.
→ Latin Am Exports: North American and European destination capacity is tight with market suffering backlogs due to limited freighter capacity; missing passenger aircraft space and continuing strong demand.
USA / Latin Am to Middle East / Africa
→ South Africa with continued strong market demand and shortage of capacity.
(Sep 1, 2021) – Global trade remains very strong, this is valid in particular for all trades ex and within Asia Pacific. All trades are expected to grow positively during 2021.
At the same time, the idle capacity remains almost nonexistent (currently at 0.7%) and more than 2/3 of the capacity to be released within 2021 has been phased into the trades already. Overall, the supply side remains limited to some 3% which leaves a huge delta between market supply and market demand and thus leads to a high-rate environment. After having dealt with the ripples of the Suez blockage, the situation around the COVID-19 cases now in Ningbo (recently in Yantian) adds up to the trades and tightens the bottleneck on equipment. Schedules in the main trades remain disrupted and reflect a capacity reduction of up to 25% weekly, through slid sailings, port omissions and other schedule recovery measures. The trades affected most are Asia to Europe and vice versa, but also ex Asia to NORAM and Europe to NORAM.
Due to ongoing peak season, vessel utilization remains very high, with roll over status in all main trades ex Asia. Also exports to Europe into the Western hemisphere (TA westbound as well as destination LATAM) continue very strong. The inconsistent capacity provision is followed by significant general market rate increases, peak season adjustments / introductions and similar. All main trades continue to show record rate levels, further increases are expected for September.
The exceptional utilizations of the vessels expected to last at least until Golden Week in October; some trades report already a strong outlook until LNY in 2022.Market rates are expected to stay high. Carriers focus on FAK segments and neglect special agreements as much as possible. 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).Schedule quality is globally at 35.8%, global delay of vessel arrival remains around 7 days. With fuel prices on the rise for IFO380 as well as VLSFO, the bunker adjustment factors have come into play from April onwards and causes rates to reflect related increases.Import free time in all markets is generally cut down to zero since beginning of the year. The current circumstances make it very important for our customers to plan volume forecast (we advise 4 to 8 weeks in advance) and be flexible to re-route cargo (for congested destinations). Please expect the situation on all trades to remain subject to continuous changes.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).
(Sep 1, 2021) - All European Ocean Freight Branches are fully functioning operationally.
(Sep 14, 2021) - Notwithstanding the market situation as highlighted within Global Ocean Freight section, there are no significant COVID-19 impacted operations as status remains unchanged.
The situation in most countries is stabilizing. We continue to closely monitor all countries in the region, with particular attention on Vietnam and China.→ Do reach out to your DB Schenker Account Managers should you require further details.
Some delays may be expected. Our priority is still focused on the health and safety of our workforce, while mitigating the operational impact where feasible. This underscores the continued risk on operations and the vigilance necessary to cope with the ever-present COVID-19 situation.
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.
(Sep 14, 2021) - 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).
(Sep 14, 2021) - 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.
(Sep 14, 2021) - 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 South-East 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.
(Sep 14, 2021) - Some restrictions to contain the COVID-19 pandemic are continuing to be in place in some European countries and are in parts directly or indirectly affecting the transportation of goods. 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.
(Sep 14, 2021) - Our Domestic Land product continues unabated to provide our regular high level of service. The situation in Malaysia, Thailand, Vietnam and other APAC countries is being monitored closely as the local situations could lead to delays.Our Asia Landbridge FTL / LTL road service is running to schedule.
Border congestion due to high market demand may add between 1 and 3 days to Asia Landbridge. A global demand for containers due to Ocean and Air capacity constraints continues to put significant pressure on road assets across the region. DB Schenker staff at Asia Landbridge border offices continue to ensure lead-times are minimized and service levels maintained through “triage” prioritization. Additional labor and associated domicile costs are still required to strategically avoid lengthy quarantine periods for our international drivers. Our Domestic and International Land services continue to meet the high market demand and are strategically positioned to meet the forecast demand spike associated with ongoing reduced Ocean freight and Airfreight capacity. However, Customers are strongly urged to coordinate any volume spikes with their DB Schenker Account Manager as early as possible.
Congestion levels continue to fluctuate on our Eurasia service for Rail and Road. Please refer to table 1. Low < 3 days, Medium > 3 days, High > 5 days Forecast transit time (CY - CY) westbound is 20 - 35 days and eastbound 25 - 35 days.
CN / KZ, CN / MN, CN / RU congestion > 7 days.
Brest / Mala congestion range 7 - 10 days.
Westbound container stocks remain low and are contributing to delays.
Xi’an’s EB booking for sanitary goods & Shanxi Province deliveries may incur additional 3 - 7 days due to inspection.
Additional costs relating to disinfecting cargo will be imposed upon the relevant freight payer or consignee for all eastbound shipments.
We therefore recommend checking estimated lead-times with your DB Schenker Account Manager.
(Sep 1, 2021) - Land transportation may be delayed in some countries due to additional checking. In some parts of the GCC, cargo movement has been restricted to food and essential items.
→ Please get in touch with your DB Schenker Account Manager for more details.
(Sep 14, 2021)
→ USA: Fully operational.→ Brazil: Market is running in normal conditions. Border between Brazil and other Countries working in a reduced period of time with some restriction. Commercial activities are working normally→ Canada: COVID-19 cases are on the rise over the last 2 weeks. Most provinces maintain moderate restrictions, with some going to a vaccine passport program No carrier restrictions – capacity remains tight on LTL – particularly to/from western Canada→ Argentina: Commercial activities are working normally→ Chile: Ports and warehouse near ports working over their 150% capability. This situation continues to escalate since March 2021.→ Mexico: Fully operational. COVID-19 cases in Mexico conitinue to rise.
(Sep 15, 2021) – While noticing different governmental restrictions especially in the APAC region, our operations and customer services remain stable worldwide. We continue monitoring the situation in all regions very closely and persist in prioritizing the protection of our staff and keeping our customers’ businesses running. Therefore, we focus on dedicated guidelines and preventive measures, e.g. social distancing, wearing masks, temperature control, sanitizing stations, enhanced cleaning on site, having office-based staff working remotely and respective controlling of health and safety regulations.
With our global healthcare quality framework, including regional and local competence centers, we support companies and institutions around the globe with handling of PPE and medical devices, to support successful distribution and administration of COVID-19 vaccines.
For short-term support we keep up our customer service offering:
→ In case you need temporary space, reach out to your DB Schenker Account Manager or local contact person!
(Sep 14, 2021) - All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.
(Sep 14, 2021) - There is no significant change in operational status for APAC countries generally from previous updates.
The situation in most countries is stabilizing. We continue to closely monitor all countries in the region, with particular attention on Vietnam and China.
→ Greater China update: There is no significant impact so far on Contract Logistics. We continue to monitor the situation closely.
Our priority is still focused on the health and safety of our workforce, while mitigating the operational impact where feasible. This underscores the continued risk on operations and the vigilance necessary to cope with the ever-present COVID-19 situation.
We remain vigilant in monitoring the situation, to mitigate events with potential impact to operations.
→ 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.
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 customer needs.
Delays may be expected due to availability of workforce and enhanced strictly enforced hygiene and monitoring SOPs. Customers may contact the respective DB Schenker representatives for further support if necessary.
(Sep 1, 2021) - 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.
(Sep 14, 2021) - Our warehouses continue to operate with precautionary measures in place for the health of our people and hence keeping up our customer services.
→ 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. There is now country wide vaccine availability to help stop the spread in the USA.→ Mexico: COVID-19 numbers are still prevalent in Mexico. We are doing everything 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 continued service.
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 support the social distancing guidelines put in place by public authorities.
The next customer advisory will be the September 29 release or earlier should there be significant developments. Visit our website in advance to be among the first informed.
Thank you for your patience and support.DB Schenker COVID-19 Customer Advisory Team
COVID-19 Customer Advisory Global Update – September 1, 2021COVID-19 Customer Advisory Global Update – August 18, 2021
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.
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