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Customer Advisory Bulletin

 GEODIS' Operational status

Latest update: 02/03/2020
Regulatory Updates from Local Authorities

Latest update: 03/31/2021
Freight Operations

Latest update: 04/07/2021
Market Information

Latest update: 04/07/2021
GEODIS AirDirect Service Between Europe – USA
GEODIS AirDirect Mexico
The GEODIS road network
GEODIS Ocean Priority loading

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Latest Customer Advisory Bulletin

Update: 07 April 2021

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 (IRISaccount 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.

Regulatory Updates from Local Authorities 
  • 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.
Freight Operations

OCEAN FREIGHT: 

  • Suez Canal News Update from 2-5 April The logjam of ships on the Suez Canal in Egypt has dissipated five days after the blockade ended. The last 60 of some 420 ships that had been waiting for passage since the accident involving the freighter Ever Given has passed through the canal in both directions, the canal authority announced Saturday.Because of the dispute over damages, the continued passage of the "Ever Given" on the Suez Canal could drag on for some time. The canal authority is seeking $1 billion in damages over the days-long blockade and will not allow the ship to continue until an agreement is reached. "We put a lot of effort and work into saving the ship. We lost revenue every day. We are entitled to compensation," Usama Rabi, chairman of the canal authority said, according to state news site Al-Ahram. Currently, the Ever Given is moored in the Great Bitter Sea between the northern and southern parts of the Suez Canal. In its claim, the authority refers, among other things, to losses of $14 million to $15 million per day, as well as days of work with dredgers and tugs to uncover the 400-meter-long vessel. On board it was $3.5 billion worth of cargo, Rabi said. "We saved the ship and her cargo." The problem for cargo interests, according to insurance sources, is that the cost of the casualty to its owners is likely to take some time to determine, if it involves claims from other parties, which means the adjustors will remain unable to fix the level of the general average and salvage securities.
     
  • The 2M partners Maersk and MSC, and their transpacific partner Zim are set to increase Asia-US east coast capacity with a new service in May. Dubbed the TP23/Palmetto service, it will deploy 10 6,500 teu vessels, with eight provided by Maersk and two from Zim. The service, which will transit the Panama Canal, has a proforma rotation of Vung Tau-Yantian-Savannah-Charelston-New York, although the carrier said that initially the calls at the Savanah and Charleston would be switched in the first few sailings due to congestion at the former.
     
  • Maersk’s decision to “temporarily suspend” spot and short-term contract bookings from Asia following the Suez Canal blockage has left forwarders and NVOCCs scrambling for alternatives. The carrier said on Tuesday it estimated a loss of capacity across its network of up to 30% “over multiple weeks”, in addition to equipment shortages in Asia.
     
  • MSC has doubled down on its stance against the use of the northern sea route following pronouncements by Russia, which has been promoting the opening up of the Arctic as a viable alternative route for ships seeking to avoid bottlenecks at the Suez Canal.
GEODIS AirDirect Service Between Europe - USA

GEODIS offers regular flights every week with roundtrip charter flights for cargo between Europe and the United States using the optimal gateways. This new service will connect USA Gateways via Chicago to Europe via Amsterdam, with connecting services throughout countries in the US and Europe. Book now!

Amsterdam to Chicago
Departure scheduled on 6 & 8 June 2020
 
Chicago to Amsterdam
Departure scheduled on 5 & 7 June 2020

 

GEODIS AirDirect Services Between Asia – Europe and AirDirect Mexico
We have established charter solutions to secure the capacity required by our customers for shipments between China & Europe. The next available flights with remaining capacity are:
  • 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

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.

GEODIS Ocean Solution for Shipments in Transit
We realize that extended lockdowns and temporary company closures, in a variety of countries worldwide, are creating challenges to get your goods delivered to their final destinations. Our teams are here to help you with all your individual logistical requirements. While we continue to maintain the safety of our colleagues against infection, we are working very hard to find suitable solutions for your goods in the most cost-effective manner, which include options below:
  • 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.
Please engage your contacts at GEODIS to better understand which solutions are the best options for your business, before your shipments arrive.
GEODIS Rail Solution China - Europe

 

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:

Figures from the data provider show that volumes in March declined by 3% compared with March 2019 (pre-Covid), while in February demand was down 1% on two years earlier. The early effects of the pandemic can be seen when comparing March’s demand figures with last year, where they are up by 29%.
 
“The -3% trend in demand for these weeks also worsened towards the end of the month, reaching -4% relative to the start of the month,” CLIVE said. While demand struggles to keep up with 2019 levels, overall indicators continue to point towards a seller’s market due to lost belly capacity.
Airline capacity for the month was down by 14% compared with 2019 levels, although it was up 12% on a year ago.
 
As a result, March’s dynamic load – taking into account weight and volume – stood at 73%, which is seven percentage points up on 2019 and eight percentage points up on 2020. March data shows that the market is still very supply driven. After indicators that the global air cargo market was seeing some ‘light at the end of the tunnel’ in January and February after a year of such high disruption, this latest industry data will reign in that optimism slightly.
 
On eastbound sectors, for example, the Chicago (ORD) to western Europe route reached levels of 80% earlier in the month, the tipping point at which prices often increase exponentially. On this market, they went up by around 25% during the same timeframe, even though the load factor increased by ‘just’ five percentage points.
 
The China-Europe trade appeared to mirror global trends: volumes in the second week of March were 7% higher than in 2019, but then dropped to 6% and 4% in the following weeks. “But data shows westbound flights from China still filled to the brim with a ‘dynamic load factor’ for the month of 93%.
 
Airfreight rates also remain high on services from Hong Kong to Europe, with Tac Index data showing that in March they were up 16.5% on 2020 and 51.5% on 2019 levels at $4.09 per kg. “Pricing in March and February did not show big volatility month-over-month and, also, the intra-month volatility was not as big as in previous periods. Whether this can now be viewed as a relatively stable situation on a much higher level than in 2019 remains to be seen,” stated Robert Frei, business development director at Tac Index.

OCEAN FREIGHT: 

As container ships resume their passages through the Suez Canal and the backlog of ships awaiting transit begins to abate, the focus is now moving towards the deluge of volumes about to hit Europe’s already disrupted supply chain. Leth Agencies, the canal’s largest agent, reports that 163 vessels have passed through the canal since it reopened on 29 April. However, data from Lloyd’s List Intelligence shows that there are still 74 containerships waiting to transit the canal, 43 of them waiting at the southern entrance and heading to Europe. And Leth warned that on average another 53 vessels were arriving to join the queue each day, according to the Lloyd’s Loading List.

Carriers will be searching for berths in ports around Europe to offload their cargoes. But shippers are already expressing concerns over what will happen to cargoes and asking that carriers communicate clearly over delays and diversions. The containerised freight supply chain was already struggling with high levels of demand and pandemic-related constraints before the Suez Canal closure, and the latest blow threatens to further disrupt supplies of goods.

 

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 LinkedIntwitter or Facebook. Kindly note that additional access to these bulletins has been added to GEODIS' Intelligent Real-Time Information System (IRISas 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