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Coronavirus: Global supply chain latest

Since China reported its first death on the 11th January, the Coronavirus pandemic has spread lockdowns and halted economic activity, removing demand for sea, air and road services, which in turn has slashed capacity, in desperate attempts to balance supply and demand.

The virus is releasing its grip in Europe and other regions, while tightening in others, notably India and South America.

Recovery will be drawn out, with supply chains experiencing differing levels of disruption across regions and countries.

Despite the challenges our expert team continue to find solutions for time-critical shipments including ‘preighters’, freighters, charters, transhipments and sea/air products.

Europe

Workers in most areas of mainland Europe are returning under strict new workplace procedures based on their governmental advice.

Production is slowly resuming and some manufacturers have begun to reopen their factories, subject safe-working regulations.

Ferries and Eurotunnel to the UK are operating without major impact, though some delays continue at border crossings, but these are diminishing.

Mainland and UK exporters continue to face challenges with blank sailings, which have reduced capacity by up to 50% on Asian and North American trade lanes.

The UK situation is starting to ease, though pressure remains on certain service loops, which are heavily subscribed.

Currently there is little impact on container equipment on eastbound trade lanes.

The majority of flag carrier airlines have closed down their passenger networks, leading to capacity constraints to/from major markets. Despite this there is congestion at some airports and cargo rerouting via European hubs.

MEA

The number of confirmed cases continues to rise, leading countries to take more stringent steps, but despite the challenging environment, all operations continue to function.

Ports and terminals are operational, with some delays due to terminals and customs shorter working hours, preventive measures and reduced capacity.

Capacity constraints are also seen in MEA region, but cargo flights are exempt from any suspension and continue to operate.

Asia

Business in China has returned to normal and transport movements are also returning to normal status within the country.

Terminal, depot and CFS operations are back to normal and the availability of reefer plugs has improved. PPE congestions is affecting some ports, including Shanghai, with changes/amendments being made to schedules.

Blank sailing programmes mean that space to EU ports remains extremely tight, with recommendations to book space 2-3 weeks ahead of ETD.

Airport ground handlers and customs clearance in China are returning to normal levels, but the continuing global demand for PPE and medical goods out of China has further increased the pressure on available capacity and airport operations. At the moment we are seeing congestion of up to two days across various airports, including Shanghai.

Pressure on capacity caused by limited passenger flight activity is seen in the majority of Asia countries.

In South Korea’s heavy backlog of air freight is making services unstable and prices to increase sharply.

In Malaysia, all essential services, such as ports and transportation companies, continue to run, but with limited operations.

Ports in India and Bangladesh are operational, but with reduced capacity, labour shortages and port congestion issues, due to companies being forced to work from home during lockdowns.

The situation is complicated with cyclones hitting India and Bangladesh during cyclone season including one yesterday/ today which is devastating Bangladesh and Kolkata region of India.

In Myanmar and Thailand ports and terminals are working as normal. Customs release is allowed in Myanmar and more and more factories are allowed to operate again, but non-essential cargo cannot be delivered.

In South Korea, sea freight logistics and overall supply chain remain stable with all trucking, customs clearance and warehousing operating as usual.

North America

A number of states have taken steps to reopen businesses and our North America offices are operating efficiently in what continues to be a challenging environment.

Cargo is still flowing and the main CFS gateways are operating normally but with reduced hours and terminals will prioritise essential goods.

The suspension of passenger aircraft has massively reduced the available capacity, which has been balanced in a modest way with an increase in freighter capacity.

We will continue to report on the global situation during the COVID 19 crisis. Please contact us for any specific requirements that you may have relating to all modes of transport.