Coronavirus: Freight and factory update

The container lines are still calling, though port operations are erratic. Air freight continues to struggle most, while factories in China began opening from Monday, February 10 – although there are regional variations.

Factories have begun to open, but regional travel restrictions are still in place, which mean that some employees will not be able to return immediately, especially migrant workers from Hubei, where most of the coronavirus (n-CoV) infections have been reported.

Local handling is available in all of our cities. Noatum Logistics can provide all basic services for Air, Sea and Rail.

Noatum Logistics office opening mirror factories in the same regions.

Already open Opened 10 Feb Opening 17 Feb Not known date
Hong Kong BeijingShanghai

Qingdao

Tianjin

Shenyang

Guangzhou

Xiamen

Ningbo (delayed) ChongqingSuzhou

Wuxi

Shenzhen

Ningbo

All staff in China are accounted for and remain healthy to date. NL China will temporarily, introduce flexible working hours for all staff, and support home-office options for non-essential staff.

Feedback from local offices:

Tianjin:
1. Two staff on shift duty every day, which is the maximum number the office building permit us to stay in at the same time.
2. Trucking service to/from Beijing has been resumed. Trucking service to/from Hebei Province are still in a stagnant state. Trucking service within Tianjin City area is comparably normal.
3. Local Customs shifts on duty this Tuesday and Friday.
4. Warehouses are semi-operating this week. However, export containers stuffing services are not yet restored.
5. Only SF Express has domestic courier service. International Couriers(DHL, FedEx, TNT) are still off, we had to transfer 2 urgent international couriers to Beijing this week to send by DHL.China-Coronavirus-Factory-Re-openings-by-Province

Chongqing:
1. For CKG, CA/CZ/O3 has resumed and RU is planning to fly in Mar.
2. For CTU, most are passengers flights and shall check case by case. LH has resumed.
3. For WUH, still pending due to NCP.
4. Barge and ocean service has resumed from Chongqing port. While for Wuhan, we need to monitor in the future days.
5. Rail and ocean service via Qinzhou has resumed, the routing via Ningbo will re-open on 17 Feb.
6. For rail westbound, Chongqing and Zhengzhou are planning to re-open on 17 Feb, Chengdu resumed on 10 Feb, Yiwu will re-open tomorrow.
7. Trucking resource is still in short supply, which is an issue for all transportation modes.

Ningbo:
1. Forwarders, carriers, truck companies, factories in Zhejiang are all in the process of open business applicatio.
2. Only a few companies are operating this week, with skeleton staff, as most staff still have to work from home.
3. Terminals are open and can pick up and gate-in containers, but most CY has not yet resumed work.
4. Most warehouses got approval this week and can start business.
5. Truck companies have shortage of drivers as most of them are not local citizens and have been unable to return.

Freight update by mode

Trucking:

  • Inter-city and Inter-Province trucking services remain a challenge
  • Significant shortage of drivers
  • Drivers haven’t been able to return to their place of work, due to travel restrictions
  • Drivers are unable to leave their living quarters to go to work, due to movement restrictions
  • Various cities have introduced lock-down procedures to restrict movement of non-local citizens, esp. in Jiangsu and Zhejiang, therefore drivers are reluctant to accept jobs to/from those places, as there are quarantine risks for them
  • These risks may be solved, by paying additional surcharges to the drivers

We have been able to address the current trucking issues because so many of our clients (shippers and consignees) are still not open and unable to resume production. Trucking is likely to become more of an issue once the factories do re-open and start production.

Ocean:

  • Most carriers are returning to work on 17 February
  • The assumption that the general “return to work” on 10 February will not result in cargo movement prior to the 17th
  • The biggest challenge is likely to be the introduction of blank sailings and port omissions and the resulting capacity reductions
  • All major ports remain open and operational
  • Warehouses have opened, most with limited staffing
  • Trucking has resumed on very limited basis and predominantly only in the major cities
  • Transport requires advanced bookings and is likely to experience extended transit times due to driver shortages

Rail:

  • China – Russia borders are open, as any closures do not apply to cargo trains
  • There is no impact on rail/road freight cross borders to and from for the time being

Airfreight:

  • RU has not started freighter operations on the 12th of February
  • CV has cancelled all commercial services for the time being and only offers charter flights
  • KZ has cancelled all commercial services for the time being and only offers charter flights
  • LH has a an irregular schedule, based on weekly review arrangements. In the coming week CW8, Freighter operations is scheduled on D 1,2,3,4 only
  • PAX flights are also further delayed now, due to lack of demand
  • As per the latest forecast, this situation will remain for the rest of February and eventually even until mid of March

 

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