The European Union was forced to intervene last week to free up the flow of essential goods. Traffic jams of up to 30 miles were reported at some Germany-Poland crossings last week, and lengthy delays developed at numerous other points, preventing the delivery of urgently needed medical equipment to heavily affected areas, such as northern Italy. In response, the European Commission issued guidelines to protect health while keeping goods moving and essential services available, calling for member states to establish priority "green lanes" by which border crossings can be made in under 15 minutes. US Ports We have previously recommended our customers anticipate further strain on the supply chain. The shutdown of retail outlets and non-essential businesses is creating a build-up of goods in transit. Retailers and manufacturers are reporting full warehouses and DC's, placing further stress on import gateways and the potential of backup of loaded containers across US ports and inland marine terminals. The JoC reports The Port Authority of New York and New Jersey is talking to warehouse owners and operators to gauge their vacant capacity and considering options for how different parts of the supply chain can adapt to handle the excess cargo. Here a repeat of some of our recommendations when planning for your inbound shipments as marine terminal space could become scarce:
Keep in mind shortened Gate and Terminal operations at ports, inland marine terminals and rail yards may be in force.
Possibility of restricting trucker appointments for the return of empty containers.
Potential wait times due to staging of drayage operators at terminal gates to minimize exposure between drayage operators and longshoreman.
Closely coordinate incoming freight with your DC's or warehouse. Reduction of staff as a result of a "lockdown" in the US might slow things down.
Curfew on non-essential, non-emergency travel will reduce workforce at warehouses and DC's and raise demand for more precise delivery times.
Revised receiving or dispatch protocols and times at warehouses and distributions centers adjusted to maximize social distancing.
Anticipate terminals shutting down temporarily when they find workers who have tested positive for the virus.
Air Freight
Air freight demand accelerates as emergency medical supplies and kits are flowing to major airports in China and Hong Kong.
Airlines and airfreight whole-sellers in China are shortening the credit for freight payment.
Airfreight rates are offered on a spot basis subject to the space availability.
More PAX flights were grounded as increasing number of countries have imposed travel bans.
Airlines continue to fly cargo only PAX flights to move essentially needed goods.
Airlines
IATA's Director General & CEO, Alexandre de Juniac is urging the Indian Government in a letter to the Prime Minister of India to provide or facilitate the provision of financial support to airlines and the aviation sector. The letter states that "Airlines are taking every measure possible to mitigate the impacts by cutting avoidable costs. However, the reality is that airlines have substantial fixed costs which cannot be reduced by cutting capacity - salaries need to be paid as do aircraft financing arrangements and other fixed costs. In recent weeks, they have been paying out more in refunds than they have received in new booking revenues, meaning that their reserves are rapidly depleting. Airlines risk running out of cash in the very near future."
Delta has added new schedule changes following updated government travel restrictions related to COVID-19. Restrictions affect additional flights to Europe, Asia, Latin America, Canada and Hawaii.
CAAC announced every foreign airline will be required to maintain only one air route to China and operate no more than one flight a week starting Mar 28, 2020, to cut international passenger flights and curb imported novel coronavirus infections. Airlines are required to implement their adjusted flight plans as of March 29, 2020. In accordance with the new policy, a number of airlines in China have announced their adjusted international flight schedules. As of Mar 28, these airlines are Air China, China Eastern Airlines, China Southern Airlines, Xiamen Airlines, Spring Airlines, Juneyao Airlines and Capital Airlines.
Vietnam
All ocean carriers are said to work normal. Shipping volumes have dropped as importers are reducing and postponing ocean shipments to North America. No reports of equipment shortages or trucking bottle necks.
India
Some carrier report tight space at trans-shipment points. Kolkata and Tuticorin has limited space issues to the US East coast. Mumbai continues to have capacity constraints and carriers are insisting to provide projections & secure bookings 2-3 weeks in advance. Chennai reported to have space issue with US East coast service. Due to the China impact most of the major shipping line`s reduced their vessel capacity's. Delhi - Hapag/APL/CMA/ space is very tight and at least for the next 2 weeks vessels are fully booked.
Many carriers have indicated that they may agree to special concession and may not be charging container detention on Import shipments into India due to network disruptions.
Philippines
Land, Air, and Sea travel shall be restricted - the international seaports in Subic, Manila, Batangas, Cebu, Cagayan de Oro, Davao, General Santos are fully operational though local customs office at North Port in Manila has been shut down due to the confirmed several cases of customs official infected with COVID-19 thus affecting import and export processing. The Manila International Airport and Mactan-Cebu International Airport are fully operational though both Philippine Flag Carriers, Philippine Airlines and Cebu Pacific have temporarily shut down their services until April 14. Only returning Filipinos and their families, accredited foreign government and international organization officials, and foreign airline crew are allowed to enter the country. Most of the foreign airlines servicing passengers have stopped operating for the time being thus affecting air cargo movement. Only limited air freighters are still operating thus airfreight rates have gone up significantly.