Coronavirus (COVID-19) Impact Report - deugro group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Coronavirus (COVID-19) Impact
Report
ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
Coronavirus (COVID-19) Impact Rev # 0 deugro-group.com June 04, 2020 Page 1 of 24
Index
Coronavirus (COVI D-19) Impact ‒ Executive Summary 3
Ocean freight overview 4
Commercial overview – Containers 4
Idle containership capacity and blank sailings 5
Breakbulk and chartering 7
Digitalization in the maritime industry 8
COVID-19 port restrictions 9
Equipment imbalance 10
Air freight overview 11
Capacity 11
Rates 12
EU travel advice and border measures 14
Current operational status of our branches 15
Co unt ry updates 16
Europe 17
Americas 19
Asia 20
Middle East 22
Af rica 23
Useful links 24
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 2 of 24
Coronavirus (COVID-19) Impact
Update 9 | June 4, 2020
This is the ninth deugro group COVID-19 update, focused on the changing impacts the virus is having in
terms of global logistics and supply chain activities.
Since the last report, issued on May 20, the total number of recorded infections has increased ever further.
According to Johns Hopkins University, on May 19 there were 4.8 million cases recorded globally, having
now increased to over 6.3 million. The USA continues to have the highest number of confirmed cases, with
over 1.8 million recorded. This is followed by Brazil with almost 527,000 and Russia seeing over 423,000
conf irmed cases. Despite the continued rise in infections, an increasing number of countries are cautiously
easing the COVID-19-related lockdowns in order to reopen schools, stores and countries’ economies.
European countries are lifting measures more gradually than those in East Asia, mainly reflecting the more
severe outbreaks throughout Europe. East Asian countries have progressed much further with testing, tracing
and PPE production, largely due to past experience and different cultural practices.
Air charter and f reighter operations remain at a record high, with steady growth in demand as lockdown
eases. Rate levels have stabilized slowly during the ongoing pandemic, but future passenger demand,
quarantine rules and new measures for flights and airports are crucial factors that will influence the
development of the global air freight industry in the coming weeks.
The ocean f reight markets, which have been some of the worst affected by the COVID-19 pandemic, remain
volatile. Container freight rates continue to rise in the beginning of June. This is due to the slowly increasing
demand for goods worldwide, coupled with major cancellations of container carrier sailings as their strategy
to address the large drop in volume earlier in the pandemic. The breakbulk carriers continue to struggle to fill
vessels due to decreased demand, an uncertain outlook and postponed major projects. We continue to
closely monitor the global situation.
Shippers demand ocean and air freight services that are easy to use, flexible, efficient and reliable. The
market has responded with the global acceleration of digitalization within the maritime and aviation industries
during the recent months as a result of the COVID-19 pandemic. The pandemic has highlighted the
importance of electronic bills of lading and airway bills in avoiding cargo delays. Such electronic documents
are proving to be key to the simplification and digitalization of global trade.
Since our last report, all leading stock market indices have continued their upward trajectory, along with oil
prices, thanks to the swift resurgence of demand for minerals, particularly in Asia. Bloomberg reported lines
of oil tankers forming at China’s main oil import facilities, where the state-owned refineries cannot process
the oil imports quickly enough to be able to provide a secure fuel supply to support the restarted Chinese
economy.
The number of project constructions sites impacted by COVID-19 infections is decreasing. Stakeholders are
rapidly learning to identify and prevent further outbreaks by changing numbers on sites and by implementing
additional control measures and social distancing to reduce disruption to project operations.
The deugro group is combining the strength of all its companies to navigate through these challenging times.
Our core values and global strength enable us to have continued good standing and capability to support our
clients and partners across regions and industries.
Our number one aim remains the safety and health of our employees, clients and partners. While we see
positive steps with several countries relaxing the lockdown rules and encouraging people to return to work,
we remain cautious and encourage our partners to adhere closely to their governments’ guidance. We are
glad to share that a growing number of our offices is seeing an increase in business activity with our clients.
Should you have any questions, please continue to engage with your local deugro office. We will always
strive to support your enquiry to the best of our ability.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 3 of 24
Ocean freight overview
The container and breakbulk sectors are some of the most affected from the unprecedented effect of the
COVID-19 pandemic on the global economy. Sales of containerized consumer goods have been hit hard by
lockdown measures and by reduced consumer spending power over many months.
With the easing of the lockdowns in many countries, there has been a slight increase in demand for goods in
Europe and the USA. Despite the slow reopening of the economies in many countries, consumers are still
reluctant to spend due to rising unemployment levels and lack of widespread testing or a vaccine for the
coronavirus.
In the beginning of June, there continues to be an increase in freight levels for container shipments. This is
not so much related to the slowly resuming demand for goods, but mainly due to the significant amount of
blank sailings announced by carriers on all major routes. In some instances, carriers are even canceling the
blank sailings originally announced or rolling over bookings.
Breakbulk carriers continue to struggle to fill their vessels, severely impacting earnings. Freight levels
continue to reduce due to a significantly reduced demand for bookings. During late May 2020, the Baltic Dry
Index f ell to its lowest since 2016. Although we see a slight improvement in June, the outlook for the
breakbulk market remains difficult.
Commercial overview – Containers
In the beginning of June 2020, there appears to be a positive development in economies gradually coming
out of lockdown. With the slight increase in demand for goods, container carriers are reviewing their blank
sailing schedules, freight rates and capacity.
The container industry is perhaps the shipping sector that is most affected by the COVID-19 pandemic. The
global container trade is still heavily impacted by disruption to the world economy, consumer activity and
demand for goods. Although we see some improvement in the demand for goods this month, the long-term
recovery may be still some way off.
Container f reight rates continue to strengthen in the beginning of June 2020. The gradually increasing
demand for container freight and the blank sailings introduced by most carriers are keeping freight rates high.
Some carriers are even announcing that they are reinstating a small number of sailings from Asia to the US A
in June, while others are announcing rate increases to Europe from Asia. The increased demand has already
led to high utilization figures and, in some instances, cargo is even being rolled.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 4 of 24
Figure 1: Year-on-year FBX Global Container Freight Index
The increased freight levels can be seen in the year-on-year comparison of the Freightos Baltic Global
Container Index™ (FBX) as shown in Figure 1. The FBX is a set of indices that reflect ocean container
transport spot freight rates across 12 global trade lanes.
Idle container ship capacity and blank sailings
The major container carriers introduced blank sailings at the beginning of the COVID-19 pandemic in order to
address the huge drop in volume across major trades globally without the need to reduce freight rates.
As reported by BIMCO, the idle container ship fleet achieved a new record in May 2020, at 2.65 million TEU,
because of blank sailings as a result of the shutdown of manufacturing in China in February. The large idle
f leet has, so far, been enough to support freight rates. While savings are made by not sailing—with voyage
costs and some operating costs avoided—the empty ships are still generating a loss on a daily basis without
bringing any income, with some of the operating costs still present and financing costs unchanged.
Figure 2: Container ship fleet growth
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 5 of 24
In the beginning of June, we are observing that the number of cancellations is decreasing progressively from
April to June by an average of 22% from one month to another, while the overall capacity deployed in the
Transatlantic, Transpacific and Asia ‒ North Europe / Mediterranean shrank by 9% from June 19 to June 20.
According to Drewry’s Cancelled Sailings Tracker, 12 sailings have been withdrawn on the Transpacific,
Transatlantic and Asia ‒ North Europe / Mediterranean trades in week 26 (June 22‒28, 2020), bringing the
total blank sailings for the month of June to 58, as opposed to 468 scheduled sailings (11%).
Figure 3: Blank Sailings Tracker by major carriers (source: Drewry Cancelled Sailings Tracker)
As we see a gradual recovery in the supply/demand market, it appears that carriers are seeing enough
demand to reduce the number of blank sailings. However, it seems unlikely that demand will revert back to
normal soon. Theref ore, we expect carriers may have to continue introducing blank sailings in the summer of
2020, although not to the extent that we saw this spring.
deugro is working closely with its clients and vendors to ensure that bookings are made on time, to anticipate
delays and longer lead times and to select the best sailing schedules in order to ensure that critical cargo is
delivered on time and projects’ required on-site dates are met.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 6 of 24
Breakbulk and chartering
The COVID-19 outbreak continues to disrupt the demand and supply side of the dry bulk market this year. In
the beginning of June 2020, we are seeing an uncertain outlook and tonnage imbalance in this sector.
The outlook for the breakbulk market remains poor, as negative demand shock and overcapacity come
together to send rates to multi-year lows. Even a return to work in China is not enough bring a boost to the
market.
The reopening of China has provided some upwards support to freight volumes; however, rates remain low.
Volumes of China’s major dry bulk imports have posted year-on-year growth throughout the crisis. Iron-ore
imports are up 5.3% and coal up 27.8% in the first four months.
The Baltic Dry Index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk
commodities around the world, plunged to its lowest on May 14 af ter USA‒China tensions escalated. The
index rose to as high as 506 on May 26, boosted by higher demand for larger vessels and as countries
began to ease COVID-19 restrictions.
Figure 4: Baltic Dry Index (source: Bloomberg)
Despite the small improvement of the BDI last week, given the overcapacity of vessels on the dry cargo
market, reputable industry sources such as BIMCO expect average freight rates to be in loss-making territory
in 2020. This will only be exacerbated by the negative demand from COVID-19.
BIMCO reports that capesize earnings have been well below the average 15,300 US dollars per day needed
to break even, falling to just 1,992 US dollars per day, its lowest level since March 2016. While smaller vessel
sizes did not reach such a low point, earnings only reached break-even levels for a brief period, with most of
the year at loss-making levels.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 7 of 24Figure 5: Dry bulk earning and break-even levels
With the reduced demand for goods and the postponement of major o il and gas and industrial projects, the
outlook for the breakbulk industry continues to be pessimistic. Even with large government investments, the
global recession is leading to lower demand and low freight rates.
There may be changes coming in the breakbulk market, such as changing ships’ distribution and reduced
competition. It is possible that many ships will go for scrapping and there will be a shortage of vessels. In the
longer term, we may see fewer ships and fewer carriers in this sector.
Get in touch with your local deugro office and we will work with our internal global charter team on
these matters. Together.
Digitalization in the maritime industry
As a result of the COVID-19 pandemic, we have observed global acceleration in the digitalization of the
maritime and aviation industries during recent months. Shippers are seeking technology-led products and
services that meet their needs more effectively and enhance their experience. Many freight forwarding
companies are responding to this demand by working hard on improving the experience of importers and
exporters, by offering more transparent and smarter shipping products and by investing in technology.
Shipping lines and airlines are realizing that by removing the paperwork and using more innovative ways of
working that utilize modern technologies, they are also lowering supply chain costs and improving
ef f iciencies. The pandemic is highlighting the importance of electronic bills of lading and airway bills in
avoiding cargo delays. Such electronic documents are also proving to be key to the simplification and
digitalization of global trade.
The Digital Container Shipping Association, formed by major carriers such as Maersk, Hapag-Lloyd,
Mediterranean Shipping Company and Ocean Network Express, recently announced an initiative that could
potentially save the container industry billions of dollars per year by 2030. It is driving alignment and digital
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 8 of 24standardization to enable transparent, reliable, easy-to-use, secure and environmentally friendly container
transportation services.
Lloyds List reported last week that the association is developing open source standards for necessary legal
terms and conditions, as well as definitions and terminology to facilitate communication among customers,
container carriers, regulators, financial institutions and other industry stakeholders.
The association estimates that even with a 50% uptake of electronic bills of lading, the sector could save as
much as 4 billion US dollars per year by 2030.
COVID-19 port restrictions
The general picture is that most ports are f ully operational for cargo business and have closed or restricted
operations for passenger vessels, especially cruise ships. The vast majority of ports are endeavoring to have
all cargo-related services operational 24/7 while ensuring a safe working environment for shore and office
personnel.
Even if cargo operations continue to function normally, in many cases governments and/or port authorities
will have introduced safety regulations and restrictions inter alia related to the movement of ships’ crews,
truck drivers and other people needing access to port facilities.
To help make this easier, we would like to share the “COVID-19 Port Restrictions Map,” produced by
Wilhelmsen Ships Service. It provides status updates twice per day of restrictions at a click on countries and
ports. Locations with updated information from within the last 24 hours are highlighted. The map can be
viewed at: https://www.wilhelmsen.com/ships-agency/campaigns/coronavirus/coronavirus-map/
Figure 6: COVID-19 Port Restrictions Map by Wilhelmsen Ships Services
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 9 of 24Equipment imbalance
The global lockdown and subsequent downturn in economic activity, along with the fall in consumer demand,
means that containers continue to be stuck in ports worldwide.
Although we noticed a gradual improvement in the container imbalance in the beginning of May, this week
we notice once again an increased container imbalance, with the majority of equipment surplus seen in Asia.
The graph below shows an overview of the current container availability worldwide for calendar week 21.
The data is based on CAx (Container Availability Index). The main change from week 21 is the resumed
availability of containers in Shanghai and India, lack of 20' and 40' HCs in Singapore and Port Kelang. There
is a stark lack of availability of all types of containers in Belgium, the Netherlands, Germany, Italy, South
Af rica and the USA.
Region Port 20' DV 40' DV 40' HC
Shanghai
Qingdao
Asia
Singapore
Port Kelang
Genoa
Rotterdam
Europe
Antwerp
Hamburg
Africa Durban
Chicago
North America
Los Angeles
India Nhava Sheva
Figure 7: Calendar week 23 | Container availability worldwide (source: xChange)
Red – Def icit of containers (incl. full and empty units, SOC and COC)
Green – Surplus of containers (incl. full and empty units, SOC and COC)
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 10 of 24Air freight overview
Since the global spread of the COVID-19 pandemic, the aviation sector has almost been brought to a
standstill. A balanced and effective restart and recovery will depend on collaboration among the key
participants in the global aviation industry. Grounded fleets and lack of space are putting the entire industry
under a lot of pressure.
The global air f reight network with 24/7 accessibility to freight forwarders, shippers and cargo owners is vital
to international trade and the global economy. Many airlines are planning for resumption and keeping a close
watch on the quickly changing environment as countries start to relax their access requirements with the
easing of their lockdowns. Top priority for all stakeholders is to minimize the risk of transmission of the
coronavirus at airports and on board aircraft, and to prevent aviation becoming a meaningful source of
international reinfection.
The Loadstar reports that air cargo will be a crucial area of resilience for airlines and airports for the
f oreseeable future, whereby commercial traffic will potentially only return at a slow pace as businesses
become more accustomed to video conferencing and companies continue to put limits on employee travel.
Investment, innovation and flexibility will be strong drivers in the future. Especially the fast-growing
e-commerce sector for all kinds of goods is calling for the restructuring of the air cargo industry away from
f ragmented systems to common interfaces of shippers, forwarders and airports —with investments in
integrated digital infrastructures and platforms to enable seamless shipment management for all stakeholders
involved.
The need f or digital solutions has become very visible during the months of the pandemic, and the need for
smart solutions to overcome obstacles is more important than ever. The current crisis is potentially a good
springboard from which to innovate.
Capacity
The drastically reduced number of passenger aircraft carrying cargo across the world is influencing the
overall space capacity in the first week of June as well. While capacity shortage is easing on the Transpacific
and Asia / North Europe rates, space remains tight on many other lanes.
Seabury Consulting reports that overall cargo capacity is down 26% compared to a year ago, compared with
‒28% the week before. Overall, we are seeing a slow stabilization of freighter capacity, while belly capacity
continues to recover due to passenger f reighter deployment.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 11 of 24Also, months into the global pandemic, airlines continue to add capacity to the market by transforming
passenger aircraft into cargo jets. Air France, British Airways and Swiss International Air Lines just recently
removed seats from Boeing 777 aircraft to free up capacity for cargo. The reconfiguration has enabled some
airlines to keep a small amount of their fleet in the air and to fly at lucrative rates; however, the operating
costs remain high and are putting many airlines at the brink of collapse.
Air charter availability is slowly recovering compared to fully booked planes during the month of May.
Rates
Overall, the air f reight market is improving with freight rates, as well as fuel surcharges experiencing a slow
downward trend. Nevertheless, short-staffed operators and reduced working hours at many airports are
causing large airport hubs to experience delays in cargo handling and aircraft processing.
As rate levels stabilize, the majority of airlines are still not able to offer end -to-end routings since a huge
number of aircraft remain grounded and services suspended until further notice. Constant changes to
nominated transfer airports and routings on short notice are hindering precise shipment tracking.
The latest statistics of airport cargo capacity outline that several traditionally large airports have been affected
heavily and are currently not ranking among the top 10 airports (by capacity).
Passenger demand, quarantine rules and new measures for flights and airports are crucial factors that will
inf luence the development of global air freight capacity in the coming weeks.
deugro’s dedicated air charter team is in constant communication with its strategic airline partners to
ensure access to the capacity required for our clients.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 12 of 24Intra-EU, cross-border cargo transfers
In the attempt to slow the spread of the coronavirus, the borders of most EU countries and Russia remain
of ficially closed to all but essential travel. Cross-border trucking of cargo is possible to allow keeping supply
chains open.
Many loading and unloading points are currently experiencing long waiting times due to extensive security
checks, reduced staff and shortened opening hours, despite so-called Green Lanes being implemented for
cargo trucks to ease cross-border traffic.
The transit time in pre- and on-carriage may be elongated slightly due to reduced freight capacity, truck
availability, and extended processing times at border controls as well as strict sanitary measures in place.
On the website COVID-19.sixfold.com, you can easily monitor the expected times that trucks are
currently spending for crossing intra-EU borders.
Figure 8 Sixfold website map with border crossing time (dated June 3, 2020)
The border crossing time is the average time that trucks spend in the border crossing corridor. These
corridors are approximately 10 kilometers long; their centers are displayed on the map.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 13 of 24EU travel advice and border measures
Several EU travel restrictions remain in place, in the national governments’ attempt to contain the spread of
the coronavirus across Europe.
Below is a map showing various restrictions implemented by countries across Europe:
Figure 9: Restricted movement of people across the EU (dated May 14, 2020)
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 14 of 24Current operational status of our branches
Figure 10: Current operational status of deugro branches (dated June 3, 2020)
Dark Gray – Branch operational, personnel working remotely from home
Medium Gray – Branch operational, staff on rotation
Blue – Branch operational, with required measures in place
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 15 of 24Country updates
Because some markets/countries are more in the spotlight due to the intensity of the virus spreading or due
to their importance in logistics, we want to provide a brief update for some of those markets on the following
pages.
On a global level, the following can be noted:
The f low of goods and essential items remains the priority in the majority of countries. Increased
border controls are impacting supply chains and having a direct impact on freight and equipment
capacity, transportation costs, operation processing times and delivery schedules.
Most ports, ocean carriers and warehouses are fully operational, despite challenges with
schedules, vessel space and equipment availability as well as reduced manpower.
Most passenger airlines continue to keep aircraft grounded and services suspended as long as air
travel is able to provide safety measures for passengers. The demand for PPE remains high
across the globe, heavily impacting rate levels and aircraft capacity, as well as the implementation
of COVID-19-related peak surcharges.
Please f ind below an overview of the various regions and short country updates outlining their current status:
E urope 17
Americas 19
Asia 20
Middle East 22
Af ric a 23
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 16 of 24Europe
In order to fight the spread of COVID-19 across Europe, border crossings within the Schengen area and
between the EU and neighboring countries remain partially or completely closed.
All branches are operational, with personnel currently working remotely from home or partly in the office on
rotation.
Please ref er to the table below for the latest country status updates:
Latest lock-
Country down
period
The Danish borders are All ports are operational, and As with the rest of No lockdown in
closed, but transportation of deliveries are being made of Europe, passenger flights place. People
cargo is still possible both containers related to ocean are no longer operational, are in general
nationally and freight transportation. Delays at or at least in limited back at work,
internationally. However, customers for loading/unloading numbers, meaning that but all are using
due to the general closure of should be expected. mainly only cargo flights preventative
businesses, shippers and An increase in rates in general are operating. This is measures for
receivers are being more due to a general imbalance, lack increasing the rates minimizing risk
careful to minimize contact, of equipment and lack of significantly at the exposure as
and, in general, delays at sailings is already in effect. moment. their physical
the border mean additional All trade lanes currently surroundings
time for transports should be operate on an ad-hoc allow them.
Denmark expected. basis only. Borders to
Germany,
An increasing imbalance in Norway and
markets is impacting the Iceland will
price and frequency for open to the
transportation as well. general public
on June 13. The
rest of the EU
will remain
closed
throughout the
summer period.
No restrictions in place, but Terminals working almost Airports are operating Lockdown
requiring additional booking normally. with limited capacity. loosening phase
notice. Vessels fully booked, and new 2 started on
France bookings require additional June 2.
notice. Green, orange
zone system
implemented.
No general loading bans in Ports are fully operational, but Airports are fully The German
Germany. space shortage due to import operational, with cargo government is
containers not being collected flights dominating the slowly lifting
remains tense. Availability of activities. specific
standard equipment in limitations, with
hinterland depots remains shops opening
critical; availability in ports is and people
Germany slowly improving. Space on returning to
vessels is limited and requires work. The
extended prenotice times due to warning for
numerous blank sailings on all traveling outside
trade lanes (EB/WB/SB). Rates of Germany is in
remain at a high level. place until June
14.
Domestic transportation is Ports are fully operational. Milan LIN is fully closed, Stay at home
operational; manufacturing Increasing lack of equipment and order has been
slowly returning. and rolling of bookings due to Milan MXP T1 is closed. eased and
blank sailings. Cargo air freight and many people
Italy limited passenger traffic is are resuming
being transported from T2 work. Further
Malpensa only. updates are
expected in the
coming days.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 17 of 24No restrictions to freight Ports are fully operational, and Airports are operating Measures for
transportation domestically some minor delays are to be with limited capacity. the lockdown
and cross-border. expected due to COVID-19 Passenger flights are will be changed
Belgium measures taken at all terminals. mainly suspended; cargo and milder
and Special equipment requires two flights operational. starting on June
the to three weeks’ prenotice and 1. Working from
container carriers are still fully home remains
Netherlands booked due to the blank sailing recommended
policy of the past and current by the
weeks. authorities.
Currently, there are no Currently, there are no International air freight is Government is
restrictions to road freight restrictions on ocean freight and temporarily shut down. slowly easing
except for the inland border port operations. lockdown
with China, which is almost restrictions.
completely shut down for
trucking. Chinese authorities
Russia are trying to limit the virus
spreading from Russia and
Central Asia back to China.
Crossing the border is
extremely difficult or not
possible, subject to the
actual crossing point.
Domestic and international Ports are fully operational, but The main airports remain Finland:
road freight is moving transit times are affected due to operational with most Get-togethers of
normally in all Scandinavian the blank sailings of shipping passenger flights more than 50
countries. There might be lines on main voyages. Feeder suspended, affecting the persons are not
some delays in border connections are not cargo freight sector. advisable.
crossings due to additional experiencing blank sailings. Because most cargo is People over the
checks, and longer transit transported on passenger age of 70 are to
Scandinavia time in international trucking flights out of the region, consider
is also expected due to and up to 90% of these avoiding social
(Finland, limited ferry connections are canceled, transit contact.
Sweden, available (latter concerning times are longer than
Norway) mainly Finland). under normal conditions. Sweden:
Finnair is converting Basically, no
widebody passenger limitations.
aircraft to partially full
freighters and adding Norway: The
capacity, especially to lockdown is
China routes. starting to be
eased.
Domestic transportation is Ports are fully operational. Airports are operating A State of Alarm
under normal operation. For Customs is working with with limited capacity. has been
transportation by road to reduced manpower. Spain’s Official State declared and is
neighboring countries, Gazette (BOE) published expected to be
drivers will need to be heat on May 29 an order extended on
checked and quarantined 14 extending restrictions on June 3 until
Spain days upon their return to non-essential travel for June 21.
Spain. people coming into
Spanish territory until
June 15.
Customs is working with
reduced manpower.
Domestic and cross-border Ports are fully operational. Airports are operating The lockdown in
transportation are London Gateway port CFS has with limited capacity. the UK is being
operational, albeit closed, restricting container The majority of flights are slowly eased as
experiencing capacity loading operations. cargo aircraft only, of June 1.
issues due to staff shortage Some blank sailings to the Far meaning significantly Limited travel
UK situation of many East and Middle East. fewer options for freight outside of the
companies. and higher rates. UK.
Continuous premium cost
for collections and airport
transfers.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 18 of 24Americas
All branches are operational, with personnel currently working remotely from home or partly in the office on
rotation.
Please ref er to the table below for the latest country status updates:
Latest
Country lock-down
period
No restrictions inside the Ports are fully operational, and Airports are operating as São Paulo is
country for commercial traffic. new bookings require longer usual. A large number of under
At borders there are restrictions lead times due to increasing passenger flights has been lockdown until
Brazil due to customs authorities who numbers of blank sailings. suspended. Cargo flights June 15; Rio
are giving preference to Customs is working with remain operational in VCP de Janeiro until
essential items as pharmaceutic reduced manpower. – Viracopos airport as well June 8.
and perishable cargo. as Galeao.
No restrictions on road freight. Ports are fully operational. The Airports operating with Lockdown
The Canada‒USA border existing backlog with limited capacity. continues
remains closed to non-essential containers has no great impact Passenger flights mainly country-wide.
traffic until June 22, 2020. Only so far. suspended or very limited. Various
essential traffic, including Canada’s customs is working Cargo flights are limited, provinces have
trade/commercial traffic, is and no capacity issues are and schedules/services are different plans
Canada allowed. reported. changing regularly. to start
It continues to be challenging to reopening.
find drivers willing to haul freight Any non-
to/from the USA. essential
services to
work from
home.
Land borders are closed to Ocean borders are closed to Airports available for cargo Curfew
people, but open to general people, but open to general transfer. decreed from
entering or exiting from/to Peru, cargo entering and exiting. Closure of airports for local 10 p.m. to 5
Argentina or Bolivia. No impact on income charges. passenger transportation. a.m., with
Implementation of sanitary No impact on shipping Commercial cargo flights possibility to
customs from Coquimbo to the companies due to shift are not operational. obtain special
north (Arica, Antofagasta, systems. Freighter flights are permission for
Iquique, etc.) and in the Aysen operational. cargo transport
and Magallanes regions (south). to guarantee
Local transportation of cargo is production and
Chile allowed but with the usual supply chain.
sanitary measures (controls, The cities of
use of masks, shift systems, Santiago,
etc.) Iquique, Alto
Hospicio and
Lonquimay
remain under
full quarantine
until further
notice.
Road freight (only for cargo for The majority of ports are fully All passenger air traffic is Quarantine will
import or export) is provided functional. suspended; only cargo continue up to
with some restrictions and to be aircraft is allowed to land. June 30 with a
scheduled from 4 a.m. to 11 Miami and Viracopos used curfew in place
Peru p.m. Cargo must get customs as hub airports for supplies from 9 p.m. to
form to support their origin, and and all foreign shipments. 4 a.m.
drivers must show their trucking
company work certificate.
No restrictions on road freight Ports are fully operational. Airports are operating with Several states
as of yet. Borders to Canada Vessels are fully booked, and limited capacity. have issued
and Mexico remain open to new bookings require longer Passenger flights are stay at home
commercial traffic for essential lead times due to increasing mainly suspended; cargo orders for the
goods. numbers of blank sailings flights operational. time being,
USA to/from the USA. some are
gradually
announcing
the lifting of
lockdown
orders.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 19 of 24Asia
All branches are operational, with personnel currently working remotely from home or partly in the office on
rotation.
Please ref er to the table below for latest country status updates:
Latest
Country lock-down
period
No restrictions on road freight. FCL: Ports are fully International air travel to and No further
Borders to Mongolia, Russia operational, and business can from China remains heavily lockdowns
and CIS remain open to be described as normal. reduced, which still has a are imposed.
commercial traffic. But delays Except for still frequent blank severe impact on air freight Occasional
are to be expected, especially sailings and occasional lack of capacities. However, over COVID-19
for China‒Russia border. equipment, which is to be the past weeks we have outbreaks are
checked case by case. We seen a gradual increase in usually
Cross-border rail freight recommend two weeks’ air freight capacity. contained
China remains operational as well. prenotice for space and Nonetheless, we within quickly
equipment bookings. recommend at least two introduced
Breakbulk: Ports are fully weeks’ prenotice and city district
operational, and until now we recommend managing lockdowns,
have not seen any negative clients’ expectation in regard e.g. as
impact on vessel and space to service reliability and rate currently in
availability. Except westbound levels. Shenyang.
sailings have seen a small
decrease in frequency.
Due to the lockdown, all states Vessels coming from restricted Domestic/international The
have closed their borders and countries will have to go into passenger flights have been Maharashtra
restricted movement. Even quarantine first (14 days of closed to any airport in government
though goods can be wait) and then only after proper India. International cargo has
transported as per the recent checks will be allowed to berth. flights are permitted, but announced
circular issued by the Port operations have not been then restrictions on people some
government on April 13, officially suspended; but owing movement are affecting relaxation
restrictions on people to restrictions on people cargo handling operations. containment
movement are in place. Thus, movement, it is becoming zones and
drivers’ availability is still a difficult to find manpower like reopening is
India question. Prior to this, all road stevedores, etc. for port scheduled
movements were restricted, operations. phase-wise.
other than essential products After June 8,
like food, medicine, etc. private offices
are allowed
to reopen
with a
minimum of
10% of staff
following the
guidelines.
Restrictions for traffic in and out Ports remain fully operational. While few domestic flights Social-
of Jakarta in place until June 7. While a health check for crew are taken up again, distancing
Cargo transportation/logistics is conducted for each arriving international flights are still measures are
are not impacted. However, vessel prior to berthing, this limited or not available. in place until
delayed transit times must be has not caused any delays in The major airports are June 4, while
Indonesia expected if transport has to berthing so far. operating at limited capacity measures
pass roadblocks. Customs activities are only. restricting
ongoing, with reduced physical private travel
activity. are in place
So far, carriers are open for until June 7.
bookings.
No restrictions to local All major ports are still fully Cargo terminals are fully Japan lifted
transportation. operational; however, most operational, but impacted the state of
trade lanes are impacted in due to lack of space emergency
terms of their schedule, space availability, reduced completely,
and rates. schedules and an increase but 50% will
Japan in air freight rates on all be working at
trades. home until
the end of
June.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 20 of 24No restrictions to road freight Ports are fully operational. Airports are operating with Malaysia’s
within the country. Cross- Increasing lack of equipment limited capacity. Passenger movement
border traffic between and rolling of bookings due to flights are mainly control order
Malaysia and Singapore is blank sailings. suspended; cargo flights (MCO) has
Malaysia open to commercial traffic. operational. been
extended for
a further
month until
June 9.
Domestic and international Ports are fully operational. International airport closure Lifted
road freight is possible, but Vessel space is available but extended until June 15. lockdown
delays of clearance are seen requires longer lead time for Relief and emergency cargo restrictions in
at border check points. the booking. Port authorities flights will be allowed for low-risk
Transit times are affected by are reducing demurrage and landing. townships.
Myanmar a night curfew from 10 p.m. to storage charges. Port Domestic flights to major
4 a.m. authorities sent notification cities will be operating
letter to shipping lines to depending on passenger
proceed DO without original demand.
BL. Customs process is slow.
No restrictions to cargo Container depots are fully Some airlines are slowly Implementati
delivery or collection. functional with no disruption. resuming certain services. on of a three-
The amount of manpower Container terminals are in Cargo aircraft is still in phase
and the number of trucks is operation, with minor operation. approach to
limited for operations by each disruptions at some due to shift Terminals are operating with resuming
company until the end of work. There has been no major reduced manpower and activities
June. delay in operations. shorter working hours. safely.
Blank sailings from Asia to the Phase 1:
Singapore USA, North Europe, India and Starting on
Middle East. June 2,
Vessels to intra-Asia are gradually
stable. reopening of
economic
activities that
do not pose a
high risk of
transmission.
There are no specific All international ports and The space situation is very No lockdown
restrictions to inland trucking terminals remain operational. tight since many airlines in place;
within South Korea. Port congestion is a factor have canceled passenger South
leading to delays in the flights. South Korea’s Koreans are
South berthing of container vessels national airline is deploying slowly
Korea as well as in container their passenger planes on returning to
releases from the terminal. cargo-only routes. work.
Changes in vessel rotation are
leading to further delays.
No restriction on freight Ports are fully operational and Commercial flights are Lockdown of
cargo, but drivers may need require a constant check of the expected to reopen at the the country
to pass through a health booking status due to constant end of June for will continue
checkpoint. If they do not changes. Carriers have been interprovincial flights only. throughout
pass, they may be required to canceling, blank sailing or Flights between Japan and June, when
be quarantined. For convoys, delaying at other ports in Thailand are will resume at further
only signal or tail vehicles are neighboring countries. the end of June. Only cargo instructions
recommended because On June 1, ports in Phuket airplanes are allowed will be
personal cars will not be Island reopened. Depending entrance. Shortage of cargo announced.
permitted to cross borders. on terminal policies, extra space during this time. Curfew from
Phuket Island is still closed specific forms may be required Higher prices and fees also 11 p.m. to
except to transport, to fill out prior to entering. RPE present. RPE is required for 4 a.m. is in
Thailand construction, logistics, is required for these areas. these areas. effect
medical and government nationwide
vehicles. Only small number for personal
of border stations is open for vehicles.
commercial vehicles; smaller Roadblocks
stations may be shut down. are in place
Drivers need to provide in areas
license information, and throughout
many companies require a the nation.
medical form to be filled out
prior to entering their
facilities. If non-compliance,
trucks may not be allowed to
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 21 of 24enter these facilities. RPE is
required for many companies.
Domestic transportation is Ports are fully operational. Rates have increased Lockdown
under normal operation; for Vessels are fully booked, and significantly due to less restrictions
transportation by road to new bookings require longer demand. have been
neighboring countries, drivers lead times due to increasing All domestic airlines have slightly lifted,
will need to be health numbers of blank sailings. canceled international and
checked and quarantined 14 Customs is working with passenger flights; only businesses
days when they return. reduced manpower. cargo flights are available. are resuming
Domestic air traffic is work. The
reduced to two flights per government
day. has advised
all citizens to
Vietnam return to
normal
routines for
economic
recovery, but
need to
execute
precautionary
measures,
i.e. wear
masks in
public areas.
Middle East
All branches are operational, with personnel currently working remotely from home or partly in the office on
rotation.
Please ref er to the table below for the latest country status updates:
Latest lock-
Country
down period
Currently, road freight is Ports are operating normally, Airports are operating The government’s
unaffected, but heavy delays but labor shortage of with limited capacity. intention is to have
experienced because drivers stevedores and customs Passenger flights are eased lockdown
need to undergo coronavirus officials is causing delays. completely suspended; fully by June 21.
testing at entry point before cargo flights operational. Until then, the
Saudi entering the country. following curfew
Arabia At the UAE–Saudi border, periods have been
UAE number plate trucks are announced:
not being allowed to enter the May 31 – June 20,
country and being 8 p.m. to 6 a.m.
transloaded into KSA number
plate trucks.
Road for cargo movements is Jebel Ali port remains The situation has not The disinfection
open for Oman only. operational, with normal changed much. The program is in
Remaining borders are timing reinstated post- rates are still on a higher place until further
closed for road movement of Ramadan. side, with no validity notice:
cargo until further notice. Abu Dhabi seaports are periods provided. Flight Dubai: 11 p.m. to
operational with limited staff. operations tend to 6 a.m.
Equipment availability in UAE change without prior Other Emirates:
has been impacted. Some notice. However, there 10 p.m. to 6 a.m.
UAE carriers require prenotice to are overbookings Business activity is
provide equipment for export regardless of space returning slowly to
volumes. This can be constraints. Aircraft normal in the
attributed to the lack of types are being changed country.
capacity deployed to the or canceled at transit Starting on June 2,
Middle East due to COVID-19 airports without notice, there is a ban on
and Ramadan lull in business making tracking orders traveling from
difficult in some cases. Dubai to Abu
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 22 of 24activity during the months of Freighter flights and Dhabi, because
April and May. converted passenger the latter has
aircraft to freighters are imposed a one-
operating at full swing at week ban on all
high premium rates. Abu traffic.
Dhabi airport is
operational with limited
staff.
No restrictions to road freight. Ports are fully operational. Airports are operating Lockdown was
Borders to UAE remain open Vessels are fully booked, and with limited capacity. lifted on May 29,
to commercial traffic, but the new bookings require longer Passenger flights are but reintroduction
clearance process is slower. lead times due to increasing suspended; cargo flights is expected at any
numbers of blank sailings operational. time due to
Oman to/from the Middle East. increasing case
Customs is working with numbers.
reduced manpower.
Electronic Delivery Orders
introduced recently by
carriers.
International road freight is Ports are operational, with no Airports are operational No lockdown in
not permitted due the impact as of now. Liners have only for cargo. However, place; offices
blockade and resultant seen major disruptions on with the limited options allowed to function
restrictions. their sailing schedules. At available for Qatar (on between 8 a.m.
Trucking within Qatar so far least 25% of scheduled calls QR and TK), air freight and 2 p.m., but
normal, though shortage of have been missed so far in requires advance with a restriction of
Qatar trucks due to drivers being the month of June. bookings. Rates are only up to 20% of
laid down with the volatile, as always total staff allowed
coronavirus is an issue. Thus, subject to space in the office.
advance planning is required pressures. However, part of
as much as possible. the industrial
areas is still
closed.
Africa
All branches are operational, with personnel currently working remotely from home or partly in the office on
rotation.
Please ref er to the table below for the latest country status updates:
Latest
Country lock-down
period
All borders are open across South African ports are Airports are operating with South Africa
Sub Sahara Africa, allowing operating under the guidance limited capacity. Passenger moved into
cross-border movement for of Level 3 advised essential flights are mainly Level 3
imports. Customs clearances cargo. All cargo classified as suspended; cargo flights starting on
South may be delayed due to non-essential on imports is limited and dependent on June 1,
Africa customs checking all the being moved to shipping lines’ cargo volumes. allowing most
documentation being correct depots to alleviate congestion people to
at time of the movement in in the ports. return to
line with each country’s work.
requirement.
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 23 of 24For any inquiries, bookings and more information, please get in touch with your deugro
contact or local deugro group office. They are available and ready to help.
https://deugro-group.com/contact/
Useful links
The links below are source of this document and for information purposes only.
Number of confirmed cases worldwide Air freight – General updates
• https://coronavirus.jhu.edu/map.html • www.aircargonews.net
• aircargoworld.com
Ocean freight – General updates • www.aircargoweek.com
• www.aerotime.aero
• www.seatrade-maritime.com • www.tacindex.com/
• www.tradewindsnews.com
• www.xeneta.com/blog
• www.theloadstar.com Oil and fuel prices
• www.worldmaritimenews.com
• www.hellenicshippingnews.com • www.shipandbunker.com
• www.lloydslist.maritimeintelligence.inf • www.oilprice.com
orma.com
Ocean freight – Global port restrictions map Policy tracker of government responses
• www.wilhelmsen.com/ships- • https://www.imf.org/en/Topics/imf-and-
agency/campaigns/coronavirus/coron covid19/Policy-Responses-to-COVID-19
avirus-map/
Ocean freight – Equipment availability Note: Data as of June 1‒3, 2020
• www.container-xchange.com
‒ End ‒
Road transportation – General updates
• www.iru.org/
Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 24 of 24You can also read
