COVID-19 Update
Janel's operational and support staff is fully functional throughout all departments with a combination of staff working remotely and a limited number of our team continuing working from our branch offices. We are glad to report that our staff is doing well and staying safe and sound during these challenging days. Working remotely is a new experience for some of us at Janel. We appreciate your patience if logistical issues may cause temporary disruptions to our teams workday that could result in a slightly delayed response.
The spread of the Covid-19 is creating upheaval in freight markets. Critical shortages of equipment and space are responsible for the elimination of price stability. Due to the critical shortages of space and equipment, pricing stability is no longer a factor.
The rate environment is now dynamic and unpredictable; carriers are pricing their space on a case by case basis, resulting in freight rate increases. Airlines and ocean carriers have started enforcing penalties for cargo that is booked but not tendered for shipment.
We are getting regular updates from airlines on actual usable space on their freighter flights, along with any passenger flights that are still operating. However, the reality now is that most carriers are basing their prices on specific space, which means longer-term pricing and forecasting have become unpredictable and in turn we need to focus on live, ready to move shipments only.
In this unstable environment, unexpected costs and freight increases are occurring and clients should be prepared. Janel is committed to mitigating the impact on clients and we ask for your help in focusing on cargo that is ready to move. This strategy will help enable us to avoid any unexpected rate fluctuation.
Port Houston Bayport Terminal
Port Houston Bayport Container Terminal, considered the most modern and environmentally sensitive container terminal on the U.S. Gulf coast, has notified the shipping community that the terminal has been temporarily closed with immediate effect due to a confirmed case of COVID-19 at the Bayport Container Terminal.
All vessel, yard and gate operations have been stopped until further notice. Barbours Cut terminal is reported to be unaffected at this time.
The Port Authority's other public facilities remain open. The Houston Ship Channel and the 200-plus private terminals that comprise the greater Port of Houston are also still operating.
Please monitor the Port of Houston website for further updates and information.
Japan
Scheduled international flights in and out of Japan are expected to be cut by some 60% between March 15 and 21 amid the novel coronavirus pandemic. Passenger flights to and from China, South Korea, Taiwan and the United States are particularly affected.
Exports of international shipments from the Port of Yokohama decreased 9.7% from a year earlier. Our partners report they are not experiencing any delay or restriction for ocean freight at the moment.
Japan plans to expand its quarantine measures on Saturday to include people entering the country from most of Europe, Iran and Egypt. The government said on Wednesday it will start asking both foreign and Japanese nationals from 38 countries to isolate themselves for two weeks in designated places such as homes and hotels.
China
Turnaround times at Chinese ports are starting to improve as more container crane operators, customs officers, tugboat pilots and other key logistics links slot back into place. Our partners report less logistic stress since last week as ports in China started to resume operation and are rapidly clearing the backlog.
As vessels are restricted to call at Wuhan port, transshipment of cargo by inland river feeder vessels in and out the ports in the Yangtze River remain affected.
Ports affected: Shanghai, Tianjin, Huanghua, Lianyungang, Jingtang and Caofeidian
Ports not affected: Dalian, Qingdao, Xiamen and Guangzhou
Some exported cargo could not be delivered to the loading ports in time due to transportation restriction in and out of Hubei Province.
Philippines
The Philippine Ports Authority (PPA) issued Memorandum Circular No. 09-2020 on March 15 under which all cargo trucks and vans going in and out of the Port of Manila are required to secure a Cargo Entry / Withdrawal Permit (CEWP) from the PPA to be presented at designated check points set up by the Philippine National Police (PNP). CEWPs will be issued by port terminal operators on behalf of the PPA.
The CEWP is a document which will serve as proof that the truck going in and out the National Capital Region (NCR) is performing an essential service and necessary for the continuous movement of goods and cargoes in and out the NCR for the duration from the community quarantine. It serves as a Pass / Clearance to enter or exit from the NCR and to proceed to and from Manila Ports.