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Wednesday, 18 March 2020

185,000 Flights Cancelled Globally due to COVID19 - Supply Chain Update 18 March, 2020

My team at Depth Logistics and I are currently fielding many questions from clients about their supply chains and what is happening in key markets with shipping and transport due to COVID19 impacts.

In response to this I offer this blog post with information we have to hand from various industry sources in Australia, the Philippines and other countries.

Firstly Depth Logistics operations are unaffected. We are here 24/7 for our clients come what may during this period and our myCargo technology gives them a definitive advantage at this challenging time. Here are our contact details.

We have moved as many team members as possible to working from home arrangements and all travel has been suspended. All non-essential in person meetings have been changed to conference phone calls and video conference.

Customs and Quarantine clearance of cargo in Australia is functioning normally and most likely will be unaffected as the system here is electronic and rarely requires manual intervention. This means that even if Government offices were to close then the clearance of cargo should keep functioning.

Airfreight capacity is serious impacted but is essential to fight against COVID19.
“Over 185,000 passenger flights have been cancelled since the end of January in response to government travel restrictions. With this, vital cargo capacity has disappeared when it is most urgently needed in the fight against COVID-19. The world’s fleet of freighter aircraft has been mobilized to make up this capacity shortfall. Governments must take urgent measures to ensure that vital supply lines remain open, efficient and effective.” said Alexandre de Juniac, IATA’s Director General and CEO.

Qantas is currently cutting 90% of international services and Virgin Airlines have announced today that by 30 March all international services will cease to and from Australia.

Freighter services are operating but under huge demand. Please see our client email advice on freighter options as at 16 March. HERE

Shipping lines have most staff operating from home. Efficiency is suffering somewhat but the key is be proactive earlier than usual in making all cargo handling arrangements.

Cargo terminals for both sea and airfreight are functioning as normal at this stage.

With airfreight so badly affected the advice below pertains to road, rail and sea freight supply chains.

North America
Barely any sea freight disruptions currently known and indeed usual road freight regulations have been somewhat relaxed to improve efficiency.

The Philippines and Malaysia
Logistics supply chains are function fairly normally despite these countries now being under lockdown. Malaysia for two weeks and the Philippines until 12 April, 2020.

China
-New local cases have dropped to less than ten per day.
-16/03/2020 China Ports & Harbours Association confirmed, the ports in China are in normal operation now. The storage issue is much better now. The ports are aiming for 80% stacked containers shipped out in next 4-8 weeks. Hapag-Lloyd also confirmed this information.
-15/03/2020 CCTV news stated as at last week, Major ports are back to normal operation level. However, reefer storage capability still full in some of the key ports such as Ningbo, Tianjin and Shanghai. Nanjing port is full for the dangerous goods. These should be reduced significantly around beginning of April.
-Vessel sailing schedules are back to normal - Some of the shipping lines yes, such as CMA CGM confirmed since middle of March. Others such as OOCL and COSCO will expect to be back to normal from 20/03/2020, however, there is no official announcement as yet.
-Truck operation is stable, especially local truck transport in South China and East China (Guangdong, Zhejiang, Jiangsu Province etc). However, the interstate trucks are still not back to normal as there are still some travel restrictions, most of the shipping lines and our agents are using trains to avoid this issue. There is no indication when the restriction will be totally removed at this stage.
-China’s manufacturing sector continues to normalise and as an average across the board is back to about 80% of pre-Chinese New Year capacity

Europe
As the virus continues to spread across Europe, we are starting start to see first impacts supply chains. Even though many European sites and offices continue to operate delays are being experienced due to increased health safety measures at different borders, in particular at the borders between Italy and its neighboring countries and at the borders to Croatia. Ocean Freight is currently not affected
FRANCE - We are advised some shipping lines now have their staff working from home in line with French Government directives.
ITALY – In regard to the recent DECREE ‘DPCM 9 MARZO 2020 ‘issued by the Italian Government, please note it does NOT imply any transport restrictions on goods or containers in any Italian Region via Sea, Air or Road. Therefore, if your Italian suppliers are still open & regularly manufacturing shipments they should be unaffected.

Please contact me personally for any urgent attention or advice you might need.

All for now...and wash those hands!

Brad Skelton

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