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Coronavirus: updates on DACHSER’s operations in China and Hong Kong

In this update, we would like to share with you an overview our operations as well as the general situation in China as of Februray 7.

DACHSER Branches

• Most of the DACHSER branches, will resume working on Monday, February 10, however there could be further changes on short notice.
• Wuhan branch is scheduled to re-open on February 14,  to be confirmed depending on the situation. The Wuhan team will be operating remotely and reachable via their usual mobile contacts. Part of the operations will be handled via our Shanghai team.
• Hong Kong branch is fully operational. We continue to monitor the situation closely and will advise if our ability to operate is impacted.

Transport logistics in China

While we are trying our best to keep your supply chain as smooth as possible, please be so kind to consider delays and other operational issues may happen, due to:

• Road: heavy restrictions are put in place for trucking across the provinces, for example road access to Shanghai is heavily controlled which may affect delivery to Shanghai Port and Shanghai Pudong Airport; transportation certificate is needed for trucks to enter or exit the Hubei Province;
• Air: Many of the airlines suspended passenger flights to and from China. Still, air shipment can be handled, except Wuhan, subject to carriers’ availability and schedule;
• Sea: Carriers have reduced sailings to and from China, however ocean terminals are operating, except Wuhan.

We have contingency measures in place and will offer the best alternative solutions to you in case any shipment is affected.

General overview of the situation in China

• Heavy travel ban for local and inter-province travel. Trains, subway and buses suspended operations;
• Local authorities requested enterprises not to resume work until midnight of February 9, meaning that business operations could start on February 10;
• Most of the factories in China will soon start resuming production; however due to travel restrictions and preventative measures to reduce the chance of being infected, most of the factories and workplace will not have their full team to operate.

We will continue to update you with the latest information on how this is impacting your supply chain. Should you have any concerns and/or queries, please feel free to contact your local DACHSER representative.

A new take on supply chains

The global economy is picking up once more. But the sharp rise in demand has to navigate not only the continuing pandemic but, increasingly, also material shortages. This presents a historic challenge and a real test for supply chains and global networks. Completely abandoning globalization, however, is not an option.

Air freight market update | March 2022

DACHSER is focusing on stabilizing and expanding its global air freight network in order to offer additional capacity and solutions in a market that remains tense.

• Current Situation

The ongoing Russia-Ukraine conflict and the sanctions imposed as a result are having an impact on all sectors. Airspace closures and the suspension of cooperation with Russian airlines are further tightening air freight capacities, that were already under pressure due to the COVID-19 pandemic and the problems in the ocean freight sector.

By launching additional individual freight capacities, DACHSER is expanding its air freight portfolio and offering its customers reliable network capacities even in this unpredictable market situation.

In March, three additional charter flights were organized between Europe and Asia, with an additional capacity of around 300 tons on the Frankfurt - Shanghai route.

DACHSER thus responds to capacity fluctuations in the market at short notice and ensuring its own stable air freight network.

China

Due to an increasing number of COVID-19 cases in some major cities in China, partial lockdowns and further measures to contain the spread have been taken in the cities of Shanghai, Shenzhen and Dongguan in recent weeks.

Airport operations were not affected, but production and manufacturing facilities were temporarily closed. Now that production has restarted, further capacity shortages are to be expected.

• Fuel costs

The increase of fuel costs was again drastically driven up by the Russia-Ukraine conflict (March: 130 USD/barrel), affecting all modes of transport. Price increases for pre- and on-carriage and a rising fuel surcharge index in air freight, which has currently only eased slightly at a high level.

• DACHSER Air network

The flexible and constant structure of the DACHSER Air network, in combination with the worldwide DACHSER gateway locations, serves all requirements of global supply chains.

The weekly network capacities from Asia (Hong Kong & Shanghai) to Europe and between Europe and the USA (rotation) are an integral part of DACHSER's air freight portfolio. If necessary, additional capacities are booked at short notice. As currently this month between Frankfurt and Shanghai.

We are looking forward supporting you in stabilizing your supply chain and are at your disposal for an individual consultation. Please do not hesitate to contact your local DACHSER representative.

• Supply & Demand Indices and Oil Development

Please click the button below to read the latest Indexes on Supply & Demand and Oil Development.

The groupage of the seas

Attacks on cargo ships in the Red Sea and the associated detours and shipping delays are increasingly becoming a threat to the smooth transportation of goods and therefore also to international trade. In this interview, Christian Kruse, Head of Global Ocean Freight LCL, explains the role of intercontinental groupage, LCL (Less-than-Container-Load) services, and the specific advantages they bring for customers.