03/03/2020
We would like to inform you about the latest update on the market situations and current status of DACHSER’s operations in China and South Korea.
China
All DACHSER branches in China are open except Wuhan. Starting from March 2, most branches are operating with full teams, but the operations are not resuming to full capacity, as the local market conditions are still very challenging with shortage of labor and traffic controls. Domestic trucking remains a major issue.
General status in China
Factories are slowly picking up with their productions. Compared with last week, more factories have resumed work, but production is not up to 100% normal, while some of the factories are either still closed or operating with skeleton staffing. Generally, all businesses are gradually resuming. In many locations, authorities only allow a limited number of staff to enter the premises to prevent workplace infection. Therefore, most of the enterprises are operating with skeleton staffing, and have part of their employees working from home, if applicable. Employees who returned from the Hubei province are required to stay in quarantine for 14 days before returning to workplace. This quarantine restriction also applies to truck drivers.
DACHSER branches in China
- All DACHSER branches except Wuhan are open and resumed business. Wuhan is closed until further notice.
- A few DACHSER branches are operating with skeleton staffing due to local authorities’ preventive measures.
- Employees, if not in the office, are working from home to keep the operations ongoing.
- There are delays in some processes, as most of the units in the supply chain within China are not functioning in full capacity.
Transport logistics in China
While we are trying our best to keep your supply chain as smooth as possible, please consider that other units in the supply chain did not resume full capacity yet. Carriers and terminals are gradually resuming operations with skeleton staff. Delays and other operational issues are expected.
Road:
- Lack of truckers is currently the major issue in China.
- Inter-cities and inter-provinces trucking are especially challenging due to heavy regulations on road, making road journeys heavily delayed.
Railway:
- Rail carriers resumed to work from March except Wuhan and Yiwu, total capacity is higher compared with February.
- Rail terminals are operating (except Wuhan) overtime to achieve higher volume of container handling.
- Customs are operating except Wuhan.
- FCL service on pre/on-carriage has resumed.
- FTL service is available.
- LTL service is available for some districts.
Air:
- Airlines increased freighters from China as factories has gradually resuming production.
- Capacity is still an issue since many of the airlines suspended passenger flights.
- It is expected that space will get tighter towards end of March as factories production is ramping up.
Sea:
- Shortage of truckers and equipment
- Carriers have reduced sailings to and from China.
- Westbound: Cargo volume is recovering as more factories are resuming production; backlog is expected once the factories are fully operative, leading to shortage of truckers and space.
- Eastbound: Intense space shortage
- Ocean terminals are operating, except Wuhan.
South Korea
Overall, the factories are open and operating normally except in Daegu where some factories are closed because their staff was infected with the virus. Business are mostly not affected, some enterprises including some of the carriers are having special working arrangement such as implementing flexible working hours or allowing staff to work from home.
DACHSER branches in South Korea
All DACHSER branches in Korea are currently open. To protect the safety of our staff, employees are asked to work from home whenever applicable. The operations teams are working on shift in the office at flexible hours to keep our service delays to minimal.
Transport logistics in South Korea
Air:
- Intra-Asian flag carriers have suspended passenger flights to and from South Korea. Therefore more than 50% of the capacity is reduced.
Sea:
- Currently there are no major impacts except blank sailing.
Domestic trucking:
- Minor delays for pick-up and delivery especially to and from Daegu due to road restrictions and preventive measures, no major issues at other places with in South Korea.
At DACHSER, we have contingency measures in place and will offer you the best alternative solutions to keep your supply chain running in case any shipment is affected. We will keep our customers updated with the latest information on the current situation. Should you have any concerns and/or queries, please feel free to contact your local DACHSER representative.
