Customer Advisory Bulletin

Dear Valued Customer,

We continue to report operational constraints related to GEODIS services only when they occur. At our locations not mentioned operations are running as usual as far as we know.

The majority of GEODIS offices across China are operating with normally; our GEODIS Wuhan branch has received the local authority’s greenlight to resume to work at the office. The status of our Chinese offices and warehouses can be found HERE.

GEODIS also provides the latest updates on the operations in our network countries where our agent partners are serving on our behalf, please find the information  HERE.

In France, Distribution & Express guarantees on a daily basis the best business continuity to its customers, and this while maintaining its usual offer and level of service.
In particular, D&E offers to its customers its solutions of "click & collect " and "ship from store". This is a way for local businesses affected by administrative closures to maintain an elementof their business.
 
However, there is an absolute necessity for customers to verify before sending that the recipient can receive their goods. To assist with this we request that recipients affix this poster to their shop window, storefront or access portal (French version HERE) (UK version HERE). This will help delivery drivers to identify open recipients, including those who are closed to the public but open to receiving packages.
 
Likewise, the handling of the shipments to individuals must be done in strict compliance with our usual B2C handling conditions (HERE).
 
The only change to our continuity of service is how the signature of the consignee for the POD (proof of delivery) is collected. In accordance with the decrees, and in order to protect our drivers and consignees, we have implemented a “contactless delivery” procedure, to avoid contact and to comply with barrier and distance measures. On this subject, we inform you that our employees and especially our drivers are provided with masks, individual soap and hydroalcoholic gel.

Please note that since the 29th of January, the government has decided to close the main French malls. (See the list HERE).

Road Transport in France continues to mobilize its resources to the highest level of efficiency possible to fulfil customer demand. Our aim is to learn how you are preparing for the  progressive restart and to understand  what is important on your markets and in your countries, in the context of even shorter term visibility which will remain a challenge.We are here to share and exchange analysis of the situation, including your short and medium term projections. In this way we hope to provide solutions that will mix capacity and flexibility, and in the same time a guarantee that sanitary rules in force will be strictly respected. For this reason, we have secured a regular delivery of masks and sanitary products to our drivers. We are also working closely with our main transport partners to ensure they can also achieve their missions safely. Contact your local GEODIS office who will be able to rapidly respond to your requirements.

Freight Forwarding activities continue to operate adequately globally. As the GEODIS workforce has transitioned to a remote working environment in most countries around the world, CCL (Cargo Container Lines) Original Bills of Lading, as well as import and export shipments, may not be handled as promptly as expected in most of our European branches. We recommend that you use Express CCL or ask your suppliers at origin to Telex Release the documents through a  local GEODIS office. We remind you that transport documents are available via your Real-Time Information System (IRIS) account through which you can also perform online bookings.

The Contract Logistics Line of Business continues to operate in all GEODIS countries with increased security measures in our warehouses. All employees follow the reccommended preventive measures (frequent handwashing, one-meter distance between co-workers) and our facilities are thoroughly deep cleaned on a daily basis. In addition, activities in healthcare and food warehouses are geared up to ensure efficient delivery in all countries.


In several countries we have started to implement further remote working options for our employees. So far this is not impacting our operational capacity and you can expect to be served as usual.

All our previous updates are available on our website HERE.

• TURKEY: The Turkish Government has again declared a weekend curfew in most cities due to an increase in the C-19 case numbers. Ocean vfreight rates are still high and equipment shortage continues to cause delays. Flights to / from the USA and the EU are restricted in capacity which is causing a backlog. Road freight operations continue normally with high charges.
  
  
  You can also find the latest updates on Americas  HERE.

OCEAN FREIGHT: 

• MSC is introducing a new service, Liberty, calling Vung Tau and Yantian with direct connections to Charleston, Savannah and New York, with the first sailing from Vietnam on 22 May 2021.
  • Liberty service: Vung Tau – Yantian – Charleston – Savannah – New York – Singapore.
  • America service: Hong Kong – Nansha – Yantian – Vung Tau – Singapore – New York – Savannah – Miami – Freeport – Tanjung Pelepas
  • Emerald service: Xiamen – Yantian – Shanghai – Busan – Cristobal – Savannah – Norfolk – New York – Singapore
     
• Maersk announced the ports of Port Chalmers and Napier in New Zealand will be alternately omitted starting with the vessel Spirit of Sydney 115N on 9 May omitting Port Chalmers and Oluf Maersk and 116N on 16 May omitting Napier. The last vessels impacted by this temporary schedule change will be the Olga Maersk 131N on 13 August omitting Port Chalmers and the Spirit of Melbourne and 132N on 23 August omitting Napier. Maersk will continue to review the port situation and the opportunity to reinstate the calls in Napier & Port Chalmers on a weekly basis.
   
• Maersk will be making an adjustment to their American Express (AMEX) service effective from May 2021. They will be reinstating the Philadelphia call, which will result in the following rotation: Port Elizabeth → Durban → Cape Town → Newark → Philadelphia → Norfolk → Baltimore → North Charleston →Freeport → Port Elizabeth
  
  These adjustments are aimed at increasing their schedule reliability and giving a competitive transit time into Philadelphia throughout the citrus season. The new rotation is aimed to be effective from:
  • Vessel: MSC Jeanne
  • Port: Port Elizabeth
  • ETA: 21 May 2021

• Shanghai to Amsterdam with a scheduled departure on 7 June 2020

Please reach out to your GEODIS contacts for more information. 

The GEODIS road network (GRN) offers scheduled departures for consignments along the Singapore-Kuala Lumpur-Bangkok axis, with multimodal gateway services beyond these hubs.

The scheduled service hubs at Singapore, Kuala Lumpur, Penang and Bangkok.

For more information, please read HERE.

• Storing full import / export containers “off-dock” to avoid high demurrage charges on quay, at carriers’ container terminals.
   
• Finding suitable secure container storage facilities close to the receiver’s premises, where possible, to ensure quick delivery once required.
   
• Unloading of containers and warehousing of cargo for temporary storage.
   
• Solutions through vessel operators to delay shipments in transit or to arrange storage at designated locations.

Note: Valid until 30th December 2020, *terminal-Terminal,**Subject to space availability and changes


Starting from the 8th December 2020, all westbound trains from China to Europe have been suspended due to the border congestion.  The situation will continue until further notice. The eastbound rail route from Europe to China is running as usual but we expect certain delays in the railway stretch from the CIS and Chinese border crossing.
 
Space on the westbound service at present is extremely tight, shipments are being accepted based on firm bookings depending on the availability of space and equipment on the date of departure. Due to extremely strong demand for space on the westbound service, we request all potential bookings to be checked with us case by case.
 
On the eastbound service, capacity is relatively sufficient despite price changes from time to time, therefore early booking is recommended in order that a competitive price can be offered and space on the train of desired departure can be secured.
GEODIS is closely monitoring the situation and will keep you updated once there is a change in the current situation.

Market Information:

AIR FREIGHT:

Global freighter capacity is “maxed out” for this year and next year and, even though a significant amount of conversion work is underway to transform aircraft from passenger to all-cargo configuration, this will not produce a substantial amount of additional (maindeck) capacity in 2022 nor in the following years, according to analysis from a leading global management consultancy.
 
“The freighters that are flying currently are flying maximum block hours. Every freighter aircraft still fit to fly - irrespective of how old and inefficient - has been put into service, which has enabled maindeck capacity to increase by 30% when compared to pre-COVID levels,” Ludwig Hausmann, who leads the air cargo service line within the global transport and logistics practice of McKinsey & Company told Lloyd's Loading List in an interview.
“But belly capacity, which prior to the health crisis represented 55% of all air cargo capacity, is still down by slightly over 50%. The upshot is we have a capacity shortfall of around 12-13% and for the gap to close, you really need to believe that belly capacity is coming back to close to where it was before.”
 
Global airfreight volumes and capacity were up in April 2021, the latest figures from analyst WorldACD, suggesting — as with March figures — “some kind of normality”. Global demand in April was up 53% on a year ago, while widebody capacity was up by 51%, reflecting the collapse in bellyhold networks a year ago.

OCEAN FREIGHT: 

Ocean freight spot rates rose further again this week from their already record-high levels, driven in particular by increases on Asia-Europe trades.
 
The ocean freight market’s ‘perfect storm’ has worsened in the continuing aftermath of the Suez Canal blockage, driving up rates on the Asia-Europe trade lane to unsustainable levels and threatening the very survival of many shippers and importers while also impacting end-consumers who are set to pay far more for goods, according to one UK-based forwarder.
 
Container shipping service quality is continuing to worsen, with the number of boxes being rolled increasing. Figures from freight visibility platform project44 shows the percentage of containers missing their scheduled sailings is rising, with some carriers and ports rolling more than half their cargo in April.

“Carriers have been watching their rollover rates increase for over a year, and have so far failed to mitigate the situation,” said its vice-president Josh Brazil. “Shippers need to accept this as the new reality.
“They are going to have to start making structural adjustments to their supply chains and enhance their visibility if they want to keep shelves stocked and factories running.”
The average rollover rate for April across ports and carriers surveyed by the company was 39%, but there were outliers such as Malaysia’s Port Klang, Rotterdam and Athens showed signs of “endemic congestion”, rolling 64%, 54% and 59% of cargo, respectively.

Shanghai containerized freight index, weekly spot rates, 2009–9 April 2021

Source: UNCTAD calculations, based on data from Clarksons Research, Shipping Intelligence Network Time Series.

For any inquiry, GEODIS’ representatives near you are looking forward to providing more details on the solution for you. Please contact us HERE

You can also find the latest of these bulletins on LinkedIn, twitter or Facebook. Kindly note that additional access to these bulletins has been added to GEODIS' Intelligent Real-Time Information System (IRIS) as well.
 
Please rest assured that we will keep you updated of any changes to the current situation. Should you have any concern and/or queries, please feel free to contact your GEODIS Local Representative.

Sincerely Yours,
GEODIS Management Team