Coronavirus Service Alert
The coronavirus outbreak in China has been causing a ripple effect across global supply chains over the past several weeks. As a global logistics provider, Logistics Plus is uniquely positioned to have our hand on the pulse of this situation. Below are several key status updates and insights as of February 17th, 2020.
On February 10th, most of China resumed work. In Shanghai, millions of people returned to work, but most are still working from home. Those who go outside are obligated to wear medical masks and protective gear. Places where people gather such as factories and public parks are closed or have limited operations until February 20th. Major highways in the highly infected cities are also shut down.
The government has blocked cities which are more seriously affected by the virus like in Wenzhou and Hubei Province to avoid further infection. No one can go back to work in these cities until further notice is given from the government.
Air Freight Updates:
- American Airlines – Suspended flights until late April
- Austrian Airlines – Suspended flights until the end of February
- Delta Airlines – Suspended flights until late April
- Qatar Airways – Suspended flights until further notice
- United Airlines – Suspended flights until late April
- Virgin Atlantic – Suspended flights until late March
- Many more
Ocean Freight Updates:
- Most carriers are not returning to work until February 17th. Major challenges include the introduction of blank sailings, port omissions and potential capacity reductions by carriers due to factory closures and low demand.
- All major seaports however remain open and operational. Warehouses across China have opened, but most with limited staffing.
- Drayage has resumed on a very limited basis and predominantly only in the major cities. Most require advanced bookings and have reported extended transit times due to driver shortages.
- Drayage costs have been impacted the most because of the virus, as ports are congested, and capacity is tight.
Trucking Updates:
- Inter-city and inter-Province trucking services remain at a standstill.
- Many drivers haven’t been able to return to their place of work, due to travel restrictions.
- Many drivers can’t 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, especially in Jiangsu and Zhejiang. Therefore, drivers aren’t accepting shipments to or from those places, as there are quarantine risks for them.
- The overall shortage of drivers remains a challenge.
Rail Updates:
- The China – Russia border remains open as the Ministry of Transportation in Russia explained that the Decree from the Russian Government does not apply for cargo trains.
- There is currently no impact on rail freight crossing borders to and from China for the time being.
If you are shipping to, from, or within the impacted areas, delays are expected. If you have any questions, or need help making specific shipping arrangements, please contact your designated Logistics Plus representative. If you don’t know who that is, you can contact us online at www.logisticsplus.com/contact-us or by calling 1.866.564.7587.
Yuriy Ostapyak
Director of Global Operations
yuriy.ostapyak@logisticsplus.com