DACHSER announces new Managing Director for its Hong Kong Business Area

Logistics in the time of the coronavirus: supply chains under stress

Worldwide flows of goods have taken a massive hit from the coronavirus in a way never seen before. The full repercussions are not yet foreseeable, but for Dachser, one thing is already certain: when plans can no longer be made, there is particular value in robust logistics networks.

The new generation of Management

The first intake of management trainees to undergo DACHSER Asia Pacific’s Management Trainee (MT) programme have graduated, with all trainees having landed permanent management roles within the company.

National Day Golden Week Holiday in China

During October 1 to 7, most businesses and factories in China will be closed. The week-long holiday in one of the world’s most important economies poses an impact to the international supply chain. Start to prepare now to minimize the possible disruptions.

• What is Golden Week?

Golden Week is a 7-day national holiday in China. Every year the Chinese celebrate the establishment of the People’s Republic of China on October 1. For this occasion, there is a week-long holiday extended from October 1 to October 7. Traditionally, Chinese people used to take the opportunity to travel for leisure and visit their families in other parts of China.

DACHSER in China, like many other businesses, will be closed during the Golden Week and resume normal operations on October 8.

• What will happen during Golden Week?

Most businesses and factories will be closed during the week-long holiday, meaning that production will be at halt. Airports and seaports will keep operating but with reduced manpower due to low production volume from factories. Normally government institutions such as customs offices will be closed from October 1 – 3.

Since China, one of the world’s biggest economies and production countries, will come to a standstill for a whole week and factories may not run at full capacity as soon as the official holiday ends, the plunge of production volume would have an impact on the worldwide supply chain.

• How to minimize the impact of Golden Week?

While we try our best to minimize any possible interruptions to your supply chain, you can also help us by considering the following:

• Communicate with your suppliers and customers to make arrangements for sufficient stock and manage expectations
• Discuss your planning with us and prepare an accurate shipment forecast for long-term planning, so we can offer you the most suitable solution that fits your budget and schedule
• Place your booking earlier and pay attention to the cut-off dates
• For sea freight, it is recommended to book 4-6 weeks before the start of holiday
• For air freight, it is recommended to book 1-2 weeks before the start of holiday

If you have any questions, please get in touch with your usual local DACHSER contact who will be happy to assist and plan the next steps with you together.

IMO 2020 and its impact on sea freight transportation

The International Maritime Organization (IMO) is taking initiatives to promote sustainability and reduce harmful sulphur gases emissions. While the new regulation to reduced maximum sulphur content (currently 3.5%) to 0.5% will be fully enforced on January 1, 2020, it is expected that the adjustment on bunker surcharge will come into effect already at the last quarter of 2019.

• Impact on shippers

With the new regulations to be fully enforced on January 1, 2020, carriers are getting prepared during the course of the year with some options available:

• Switch to low-sulphur fuel
• Use Exhaust Gas Cleaning Systems which commonly known as a “scrubber” to clean up the sulphur oxide emitted from the vessel’s engine.
• Change the fleet to Liquefied Natural Gas Ships that are powered by Liquefied Natural Gas (LNG). LNG is considered as a cleaner fuel with less emission of greenhouse gases including sulphur oxide.

To ensure a smooth transition, carriers have to implement the above changes before January 1, 2020. Due to the investment in clean energy and cleaning systems, there will be an adjustment to the bunker surcharge formula which is expected to be effective from the last quarter of 2019.

• What is IMO 2020?

IMO is proactively taking steps to reduce marine pollution and minimize the vessels’ impact on global warming. Currently, most of the cargo ships use heavy fuel oil which is derived from crude oil and contains sulphur oxide. The gases can cause acid rain and trigger respiratory diseases. Therefore, the tolerant of sulphur oxide emissions has been tightened progressively throughout the past decade.

Also known as “IMO 2020 fuel sulphur regulation”, IMO 2020 is an initiative from the IMO which aims to reduce sulphur oxide emissions from ships.

By the deadline of January 1, 2020, all carriers will have to comply with the new regulation, which imposes a 0.5% global sulphur cap on fuel content and replaces the current limit of 3.5%.

If you have any questions regarding this topic, please feel free to reach out to your local DACHSER representative.