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Customer Advisory COVID-19

Since the COVID-19 virus has spread, we have extended our COVID-19 customer update. We have compiled and aggregated facts and figures across all business areas as well as covering all regions. Please continue to be engaged with your account managers on your latest plans, prices and projections. We continue to make every effort to support your business.


Market Updates

  • Europe?

(June 23, 2020) -

Restrictions directly or indirectly affecting the transportation of goods are largely lifted in an increasing number of European countries. For any potential cases of disruptive conditions, we follow our pre-defined contingency plans to ensure flows of cargo as much as possible.

During the last weeks we had suspended the money back guarantee of our System Premium product due to the unpredictable and volatile circumstances. We are happy to announce that effective immediately we will restore the money back guarantee for System Premium shipments. Delivering superior quality for our customers was always and will remain the highest priority for us – for that reason the restoring of the money back guarantee was of utmost importance for us.

With increasing economic activity in many European countries, we are adapting our transport service offerings daily to the needs of our customers. Are you restarting or expanding your international business activities? DB Schenker Land is your partner with the strongest and most resilient network across 38 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.

Some receivers continue to have limited operations and we ask all shippers to check the delivery possibility with the consignee to avoid cost for storage or return shipments.

  • Asia Pacific?

(Jun 23, 2020) - There are no significant updates in status from the previous advisory.

Asia is emerging in different levels with domestic road freight, Asia road International (Asia Landbridge), and Asia-Europe train transport (Eurasia Landbridge) from the COVID-19 crisis.

Eurasia Landbridge

(Jun 23, 2020) - There are no significant updates in status from the previous advisory.

Asia is emerging in different levels with domestic road freight, Asia road International (Asia Landbridge), and Asia-Europe train transport (Eurasia Landbridge) from the COVID-19 crisis.

Eurasia Landbridge

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Eurasia Landbridge is doubling the volume since March 2020 owing to the reliable lead time even during COVId-19.

Services include LCL, FCL, single container, company train, and block train services on weekly basis via rail, both eastbound and westbound. Strong road networks and services at both origin and destination ends enable seamless end-to-end services.

Lead time terminal to terminal is 16-18 days westbound, 18-20? days eastbound. Also, we launched a speed train Xian – Rostock with a lead time of 12 days on weekly block trains basis.

Asia Landbridge

Our Asia Landbridge is also doubling the volume since March 2020 with compelling lead time and freight cost.

Asia Landbridge also supports Air and Ocean connections by delivering the cargo to the nearest gateway with capacity, providing in-transit change of mode services when destination airspace is restricted or air capacity limited.

Both FTL and LTL services are available within the Asia continent, withdaily departures for FTL complimented with our LTL service which has three departures southbound and twice a week northbound.

Domestic Land

Operating in 17 countries across Asia, our volume and operation is back to normal. We are constantly tailoring our services to enable customers to meet the changing demand from the current erratic activity spike; recently we have developed contactless POD signing process to accelerate the safe cargo handover.

Cross border freight traffic remains a strong alternative to the significantly reduced airfreight sector. Borders across Asia remain open for freight with an easing of congestion. Drivers are still required to undergo health checks. Europe is consistently being serviced via our regular trains from China. The services include block trains, FCL and LCL.? Thailand is 90% back to normal with the night curfew being removed on the June 15. India mostly remains under lockdown with the government extending restrictions until June 30. A driver shortage and capacity constraints with trailers and long-hauls is putting upward pressure on domestic India transport rates. DB Schenker India can arrange security escort services where needed to move your essential cargo to reduce time at road checkpoints.

Strong volume recovery in Vietnam, Malaysia, Japan, Korea, Singapore, Indonesia, Australia, New Zealand, with the easing of relevant restrictions in some of the countries.

Thailand volumes remain below same time last year, mainly impacted by reduction in the automotive industry.

Bangladesh volumes affected by India border closures.

Myanmar airspace restricted but trucks can cross the border.

India authorities adjusted restrictions in states via Red, Yellow and Green Zones to calibrate extent and enforcement of measures. India expects to return to 80% production in a few weeks (please refer to our India website for detailed information via download).?

  • Middle East/Africa?

(June23, 2020) - There are no significant updates in status from the previous advisory.

(June 23, 2020) - From June 1, the lockdown in South Africa has been eased down to level 3. It will increase DB Schenker’s capacity for local operations. For more information, please get in touch with your Account Manager.

(June 23, 2020) - International GCC land border connecting Saudi Arabia to other countries has been opened for land transportation / land freight movement with limited operations.

  • Americas?

(June 23, 2020) -

Mexico: 100% operational with less capacity to dispatch on time from Border to Final destination (Northbound shipments).

Canada: Experienced strong volumes last week and added back an additional run due to improved volumes. We have segregated shifts to avoid overlap and are implementing social distancing.

USA: Experienced significant increase in truckload shipments.

Brazil: Significant increase in shipments (306 last week compared to 221 the previous week).

  • Global

(June?23, 2020) -?There are no significant updates in status from the previous advisory.?

(June?9, 2020) -?The air freight market remains very volatile in the current?COVID-19 pandemic?with capacity shortage?across all?regions. As?market?demand is?declining due to less PPE demand in China,?there is also a decline in?passenger cargo flights?in?recent weeks.?Overall?global?capacity?remains short?averaging around –26% year-on-year.?The capacity situation is also forecasted to be impacted by maintenance checks of the air freight freighter fleet in the?coming months leading to a remaining shortage in global supply. One of the?key factors?in the?market?that remains unpredictable?for the remaining months in 2020?is?the?potential return of?international?passenger flights and?related?belly capacity.?This, in addition to the short and mid-term consumer behavior?and inventory management?in the second half of 2020, will highly impact the demand development in the air freight market.

In addition, our console charter flight schedule remains in place to support your demand and critical shipments ensuring we provide you with alternative solutions:??

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)?


  • Europe

(June?23, 2020) -?There are no significant updates in status from the previous advisory.?

(June 9, 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 towards the weekend. Operationally, our linehauls to and from the hubs remain on time. In some areas, our cross-border trucks might experience some minor delays.??

Airfreight export market volumes are slightly lower, but import is still very stable on a high level. China imports go very strong at continuously all-time highs due to an ongoing strong demand in medical supplies, protective gears, and face masks which DB Schenker continues to support with utmost priority.????

  • Asia Pacific?

(Jun 23, 2020) - There are no significant updates in operational status from the previous advisory.

Chennai in India has reinstated lockdown until the end of June. Our Air operations remain available to support customer needs. Delays are expected in customs clearance and transportation as the lockdown affects availability of workforce across state and central government establishments, including ports, airports, etc. Alternatives to move / transport cargo via other gateways / routes are being established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

Similarly, the lockdown in Beijing China currently has no significant impact on our operations. We continue to monitor the situations in our network.

APAC countries are slowly opening with most countries allowing manufacturing activities. Congestion in Greater China remains, albeit improving gradually. Capacity is expected to remain volatile.

More countries are easing up their restrictions allowing for restarting certain industries which will increase export demand for these countries.

  • On India charters, plans are in place and timed for when the market opens. DB Schenker is now also able to support cross border trucking within India.
  • Demand for ex China is stabilizing. The backlog at all China airports is requiring minimum 48 hours advance notice for tendering in of cargo.

We have put additional charter programs (such as for Intra-Asia SG to IN and others) in place. Do get in touch with your Account Managers for further details.

  • Middle East/Africa?

(June 23, 2020) -?Etihad Cargo added 22 weekly flights and five new destinations across Europe, Asia, America and Middle East. Please get in touch with your Account Manager for more information.

(June 23, 2020) –?Overall, our air freight operations in the countries remain uninterrupted as we continue to serve customers and manage the current demand with available cargo capacity. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.

Situation

Country

No operational restrictions for air cargo business

Qatar, Kenya, Oman, South Africa, Bahrain, Saudi Arabia, UAE , Egypt

Restrictions for operational air cargo business

  • Americas?

(June 23, 2020) - There are no significant updates in status from the previous advisory.

(June 9, 2020)?

USA-China:

  • With the continuing large number of inbound freighter flights, scheduled and charters, USA exports have sufficient capacity to meet demands. ??
  • Rate levels have dropped but remain above pre-COVID-19 levels.? No backlogs from the USA to China.??

USA to Asia (excluding China)

  • Australia, India, Japan, Korea, Singapore and Thailand, Singapore with tight capacity with some backlogs. Market pricing moderating from prior highs, but still well above pre-COVID?levels.?

USA-Europe:

  • Demand is moderate with sufficient capacity to avoid backlogs. ?Pricing has moved downwards, but as countries begin to reopen possibilities of renewed upward pricing pressures.
  • Schenker to maintain round trip freighter flight operations:? 3 x week ex. ORD and ATL to FRA.?

USA-Latin Am / Latin Am to Europe & APAC:

  • Demand for available freighter capacity remains strong with space tight to some destinations.? Peru specifically has developed severe?capacity issues.? Pricing trending higher to some markets.?????
  • Two principle freighter carriers for the region have declared chapter 11 bankruptcy (re-organizing). Service continue but with some flight scheduling disruptions / delays.?

  • Global

(June 23, 2020) -More than 500 sailings have been blanked, services suspended or merged during the past months. During this time, almost all trades have declined by double digits. This affects all verticals except perishables. Until the end of the year, Seabury expects Global container trade to be reduced by 22 Mio Teu compared to 2019. The current liftings and outlook for the next four to six weeks looks strong for the trunk routes, I.e. Asia to Europe, Asia to Noram, Europe to Far East as well as Europe to North America. Carriers are pushing hard for yield improvement measures and select cargo for uplift accordingly. Low priced volumes will not be able to get space ex Asia. Single carriers have built up a significant roll pool already. To cope with the strong imbalance of too little supply versus the demand of commodity / lumber volumes ex Europe (for destination Asia), some carriers have started to route this commodity westbound via Mexico.

Blank sailings / suspension programs / service mergers / combined service loops remain the tool to drive supply and demand forward and will be continued throughout the entire third quarter. About 75 blank sailing sailings have already been announced for this time period.

Should July develop slowly, carriers will not shy away from further capacity reductions and void sailings.

With all stakeholders in the supply chain, the unpredictability and constant changes of the last weeks have underlined the need to stay flexible and to be able to adapt at any time. It is not a surprise that carriers announce that their booking acceptance will not go beyond six weeks due to possible future changes.

Please expect the situation on all trades subject to continuous changes.

With massive vessel withdrawals, uncertain outlook on vessel utilizations and partly huge impacts on port terminals, we need to prepare for changing schedules and transit times (due to slow steaming, port omissions or additional port inclusions as a result of service mergers), sudden / unexpected delays in uplift, increased bottlenecks of equipment availability, less frequent departures and sudden surcharges possibly resulting in higher costs for the supply chain.

Our experts in Ocean will support and guide for

  • SchenkerOcean priority product on all main trades which guarantees loading within a fixed window.
  • Various SchenkerOcean delay in transit options (a. stopping of cargo in a t/s port, b. using own or contracted warehouses and store goods accordingly), this reduces actual cost in the ports (costly storage) and helps ports to prevent from being congested and thus ensures moves at quay without waiting time for truckers.
  • SchenkerOcean offer for “slow boat – fast boat” possibilities if delay in transit is not an option (e.g. with sailings around Cape of Good Hope)
  • SchenkerOcean offers for alternate routing possibilities to ensure cargo is lifted from port of loading.
  • Volume forecast and allocation planning: We have access to volumes on all alliances and support volumes planning through consultation services(allocation match based on customer forecast). (Under progress: volume prediction per vertical.)

New: Personal Protective Equipment services ex China Europe

  • Europe?

(June 23, 2020) - On trades to the West, the utilization to North America has improved to over 90%, however Latam destinations are under decline. It is expected that carriers will take additional actions on curtailing the capacity.

(June 2, 2020) - On exports ex Europe to the East, carriers still report strong booking situations with only limited shortfalls. Especially commodity volumes are still going strong (logs, chemicals). Equipment availability becomes a larger concern due to an upcoming 25-40% reduction of inbound flows plus expected longer usage of the equipment.

All European Ocean Freight Branches are fully functioning operationally.

  • Asia Pacific?

(Jun 23, 2020) - There are no significant updates on the operational status from the previous advisory.

Chennai in India has reinstated lockdown until the end of June. Our Ocean operations remain available to support customer needs. Delays are expected in customs clearance and transportation, as the lockdown affects the availability of workforce across state and central government establishments, including ports, airports, etc. Alternatives to move / transport cargo via other gateways / routes are being established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

Similarly, the lockdown in Beijing China has no significant impact on our operations for now. We continue to monitor the situations in our network.

Ex China, Ocean Freight is stabilizing, and blank sailings are reduced but still impacting all trades significantly. Whilst demand to Middle East extremely weak some slow uptrends can be monitored on trades to ISC and Oceania. An increase in demand for the express ocean services on the trans-pacific can be monitored.

For all APAC countries, customers are encouraged to use seaway bills to avoid reliance on original bill of lading as courier companies may not deliver timely in the coming weeks and most companies, including DB Schenker, are operating with working from home based on health concerns and strict government regulations.

  • Middle East/Africa?

(June 23, 2020) - There are no significant updates in status from the previous advisory.

(June 23, 2020) - Our Ocean Freight offices in the countries continue to serve customers as logistics and supply chains are considered business critical as per local government directives.

  • Americas?

(June 23, 2020) - There are no significant updates in status from the previous advisory.

(June 9, 2020) - Ocean carriers are continuously largely implementing blank sailings. Current announced blank sailings will last to the month of June. Currently observing some equipment shortage at US origins.

  • Global

(June 23, 2020) - There are no significant updates in status from the previous advisory.

We continue to anticipate forecast and demand with our customers:

  • In case you are also in need of temporary space, reach out to your?DB Schenker Account Manager or local contact person; find more information here!

Global restrictions are further easing up with regional exceptions, with more and more sites getting back to full performance, as higher volumes are coming in. No change in prioritizing protection of our staff and keeping our customers’ businesses running. BCP‘s are in place and monitored around the world with dedicated guidelines and preventive measures, e.g. social distancing, temperature control or placement of sanitizing stations.

  • Europe?

(June 23, 2020) - There are no significant updates in status from the previous advisory. All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific?

(Jun 23, 2020) - There are no significant updates in operational status from the previous advisory.

Chennai in India has reinstated lockdown until the end of June. Our CL operations remain available to support customer needs. Delays are expected in customs clearance and transportation as the lockdown affects availability of workforce across state and central government establishments, including ports, airports, etc. Alternatives to move / transport cargo via other gateways / routes are being established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

Similarly, the lockdown in Beijing China has no significant impact on our operations for now. We continue to monitor the situations in our network.

NZ has declared situation back to normal, free of COVID-19. Australia continues to ease restrictions (except the state of Victoria).

Malaysia eased CMCO (Conditional Movement Control) to Recovery Movement Control Order (RMCO) until Aug 31. All Warehouse operations are back online, albeit some with reduced resources (limited) and under strict hygiene SOP.

Vietnam is virtually back to normal. Indonesia is also easing some restrictions even though cases are up. The situation in Indonesia will be monitored closely.

Myanmar government has initiated stop work order for factories (and other) operations until approval to re-open.

India authorities adjusted restrictions in states via Red, Yellow and Green Zones to calibrate extent and enforcement of measures (please refer to our India website for detailed information via download).

With different countries at varying status, even at provincial / prefecture levels, we are closely monitoring all our markets and, where appropriate, also taking pre-emptive steps in planning for recovery and resumption incrementally or in phases.

While governmental imposed restrictions in all APAC countries continue, our service levels are maintained so far to serve our customers.

  • Middle East/Africa?

(June 23, 2020) - There are no significant updates in operational status from the previous advisory.

(June 23, 2020) - From June 1, lockdown in South Africa has been eased down to level 3. It will increase DB Schenker’s capacity for local operations. For more information, please get in touch with your Account Manager.

  • Americas

(June 23, 2020)

All CL America sites are open and operating without limitations following government regulations and guidelines of each individual country and state.

  • Global Projects & Industry Solutions

(June 23, 2020) - Capacity for break bulk, for out-of-gauge cargo, but also for some cargo types which are normally transported containerized, is still available in the break bulk shipping market segment. DB Schenker is in regular exchange with all major and relevant multi-purpose vessel (MPP) operators. Full logistics services (incl. part / full charter) can be offered and bookings can be placed according to customer requests. Some operational delays are still expected following various lockdowns and restrictions implemented. 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 support clients to develop tailored transport solutions for all break bulk or out-of-gauge shipments or any other project shipment independent of markets or trade lanes.

  • Fairs, Events and Special Logistics

(June 23, 2020) - The outlook in the global exhibition industry is positive as more and more countries restart exhibitions and ease existing travel restrictions. We are in close contact with the leading exhibition organizers and associations worldwide and continue to monitor all developments closely. As all countries have different rules and regulations in place, our Global Fairs & Events Service Center is up-to-date and 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?


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 support 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.

The next update will be sent on July 7 (or earlier should there be significant developments).

Please visit our website www.draktant.com or your local DB Schenker website for ongoing updates and additional information.

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


Disclaimer: 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 or the use thereof.

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