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Customer Advisory Bulletin

Introduction

Latest update: 05/19/2020

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Regulatory Updates from Local Authorities

Latest update: 06/03/2020

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Freight Operations

Latest update: 06/03/2020

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Market Outlook

Latest update: 06/03/2020

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GEODIS AirDirect Service Between Europe – USA

Latest update: 06/03/2020

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GEODIS AirDirect Services Between China – Europe - US and AirDirect Mexico

Latest update: 06/03/2020

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GEODIS AirDirect Europe to Australia / New Zealand

Latest update: 05/07/2020

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GEODIS Rail Solution China – Europe

Latest update: 03/05/2020

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GEODIS Ocean Solution for Shipments in Transit

Latest update: 04/16/2020

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Latest Customer Advisory Bulletin

Update: 3 June 2020

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, the lifting of the lockdown begins on the 11 of May. This means the resumption of activity for a large number of companies, and for D&E, the gradual return to operational levels aligned as closely as possible to the pace of this recovery.D&E is working to gradually ramp up its resources, in order to allow its express offer to return to normal by June 2. This represents at this deadline, the reinstallation of the essentials:
-              Twice daily delivery
-              Saturday morning delivery
-              top H 
-              LAO (delivery before opening)
-              commitment to express deadlines

D&E restarts on this same date of June 2, the "On Demand" offer and the associated recipient notifications.
The same is true for live animals: restarting of all traffic of live animals from June 2, but with departures only from Monday to Wednesday. The reopening of departures on Thursday will be effective from August 31.
The other temporary adjustments to the D&E commercial offer have been lifted as of Monday the 11 of May: 
-              C.O.D. deliveries
-              Swap deliveries
-              Deposits and collections of goods at our docks for any kind of consignee including private individuals

Concerning individuals, D&E continues to provide delivery to individuals, excluding departments 67, 68 and 90.More than ever, the management of these flows to the individual must be done in strict compliance with the usual B2C support conditions  HERE.
All our deliveries, both private and business, continue to be carried out in compliance with our contactless delivery procedure, in order to guarantee the safety of our employees, our clients and the consignees.
The absolute necessity for our shippers is to verify before sending, that their recipients are able to receive their goods. D&E hope, like its clients, that this economic recovery will be fast, and reaffirm that our mission "to help you succeed by overcoming logistical constraints" is more important to us than ever.

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.

 
Regulatory Updates from Local Authorities 
  • Colombia: Through decree 768 the Ministry of transport announced that from 1 June 2020, the collection of tolls from vehicles transiting through the national territory will be reactivated.  The Government in alliance with Icontec (The Colombian Institute of Technical Standards and Certification) has created a “Trust line” with the purpose of supporting companies to develop their biosafety protocol and be prepared for their reopening. The Mayor of Bogota has created an app to collect information from citizens about their health status and record of mobilization; the registration of this app is voluntary. These records will allow the administration to organize and optimize biosafety protocol on public transport, thus mitigating the risks of crowding and massive contagion of COVID-19. 
     
  • Denmark opens its borders for tourists from Germany, Norway and Iceland from 15 June. 
     
  • Norway: Schools and kindergartens return to normal business hours starting next week with 1 meter social distance guideline. As from 15 Juneit will be permitted to travel to/from Denmark. Traveling to Sweden will still not allowed due to their current situation.
     
  • Poland: Since 30 Maythere is no obligation to wear masks in open spaces and public meetings may be held with a maximum number of 150participants.  Limits on the number of people using restaurants, post offices and other service outlets have been removed.
     
  • Turkey : Easing coronavirus containment measures have begun by lifting intercity travel restrictions.  For the first time several weeks senior citizens, children and teens are allowed to go out during a time allocated to them, although just for one day. As of 11 May some businesses, such as hairdressers, barbershops and beauty salons, may opened and malls are also allowed to be opened with specific measures.
    Curfew restrictions will be lifted and flights will gradually start. In June, hotels, resorts, cafes and restaurants will start to serve in accordance with agreed rules and with certain limitations. For tourism services to start, a certification will be required. The opening of libraries and the commencement of sporting competitions will follow in due course. Activities such as cinema and open-air theatre are planned to start with some restrictions and mask obligation.
     
  • UK: Some school year groups have gone back (reception year, year 1 and year 6 and those that are critical worker’ children). England residents are allowed to meet up with another five people from different households outside (including a garden) by adhering to 2 m social distancing guidelines. People are allowed to exercise as much as they like outside. 1 to 1 coaching or personal training is allowed. Socially distancing BBQ's are permitted as long as 2 m social distancing is adhered to. Clinically vulnerable people are now allowed to go outside with their house hold members once a day.
     
  • Hong Kong: Anti-epidemic scheme enhanced: the government will enhance the Anti-epidemic Support Scheme for the property management sector and extend the scheme for 3 more months from June to August 2020.  Transport trade subsidies open: subsidy scheme for public light buses, local ferries and taxis under the second round of the Anti-epidemic fund have opened.
     
  • Korea: In light of the recent rise in local transmissions in the Seoul Metropolitan City, the KCDC ( Korea Centers for Disease Control and Prevention) has urged people in the capital region to refrain from social gatherings or visiting any enclosed/confirmed/crowded spaces that are frequented by many people.  People who cannot avoid visiting enclosed spaces for an essential reason should carefully follow personal hygiene measures including keeping 2 meters of distance from other people, wearing a facemask, etc.  The Ministry of Education announced that high school junior, middle school seniors, primary schools returned to school from 27 May and all schools, including elementary grades, will resume classes on 3 June.
     
  • Japan: Japan has lifted the state of emergency and the majority of commercial facilities are gradually reopening as of end May. Japanese Government will prioritize businesspeople and experts as it eases entry curbs. Scope of areas subject to released restrictions will be expanded gradually. Some cities recorded an increase of daily infections after the emergency status was lifted, and the Government is still urging people to maintain social distancing practice.
     
  • China: Considering the exceptional circumstances this year, the Chinese government made the decision to drop the GDP target for the year. Instead of setting such a target and working toward realizing it, the government will better safeguard employment, people's livelihoods, the development of market entities, food and energy security, stable operation of the industrial and supply chains, and the smooth functioning of society.  The purchasing managers' index (PMI) for China's manufacturing sector and that for the non-manufacturing sector both stood above the boom-bust line of 50 in May, indicating steady recovery in major industries, data from the National Bureau of Statistics (NBS) showed. Positive PMI trend is an indicator that Chinese economy on recovery course.
     
  • Canada: Canadian government & Public Health agencies have restricted entry of all travelers except Canadian citizens & permanent card holders into Canada.  Canada and the United States appear likely to extend border closure for all non-essential travel until 21 JuneSupply chains are not be impacted by this closure.  Province of Quebec (MONTREAL) will continue lock-down and specifically in the city of Montreal as Covid-19 infections continue to spike.  Province of British Columbia (VANCOUVER) never issued a shelter-in-place order, so decisions around reopening parks and community centres — provided physical distancing measures can be maintained — will be made on a local level in the weeks ahead. 

    You can also find the latest updates on Americas  HERE.
Freight Operations

AIR FREIGHT

  • SAS reopened routes. More and more countries are easing their travel restrictions, which enables SAS to resume flights to many destinations from June onwards. This primarily includes domestic flights within and between the Scandinavian countries, but flights to New York, Chicago and Amsterdam from Copenhagen are also set to resume. From Copenhagen, SAS is resuming international flights to Amsterdam, New York and Chicago.
     
  • American Airlines Cargo: The company doubled their widebody operation from 140 to 282 weekly widebody flights, beginning June 4. Their flight schedules can be found HERE.
     
  • Air France/ KLM Cargo: Following the significant impact of the Coronavirus situation on their flight operations, they offer currently adjusted capacity that consists of:
    -Scheduled wide-body belly services
    -Scheduled full freighter services
    -Chartered wide-body belly & full freighter options
    -European narrow-body belly services
    -Detailed flights schedule can be found HERE

OCEAN FREIGHT: 
  • Global Port Restrictions: Due to changes implemented by governments over the last few days, there are further port restrictions around the globe. You can find all the updates HERE.
     
  • Maersk: Continued Seasonal Capacity Adjustment on Asia-Australia Services. Further to their general advisory issued on 6 April 2020, Maersk extends the temporary suspension of the YoYo service until the end of September. In addition, they will continue to adjust their Dragon service to call Hong Kong both southbound and northbound to provide South China coverage. Their Hong Kong calls offer comprehensive connections to the wider region.
     
  • Maersk: Operations in UAE. Currently the company is 100% operational. Further to the latest guidelines and protocols announced by Dubai Economy, Maersk office are assessing their resuming to office approach. All Maersk operations including terminals, offices, warehousing, and other facilities continue to operate uninterrupted as per usual.
     
  • MSC : announced additional seasonal blanking programme on their Asia–Europe network – which started in April – will be extended during the summer period. Two MSC services – Dragon (Asia-Mediterranean) and Swan (Asia-North Europe) – will not be reinstated until further notice. MSC introduced the Griffin service, operated as a single hybrid fortnightly service spanning a combination of Asia-Mediterranean and Asia-North Europe port calls. The Griffin service is scheduled to start in the second half of June with the following rotation: Shanghai – Ningbo – Yantian – Singapore – Tanjung Pelepas – Port Said – Rotterdam – Antwerp – Singapore – Ningbo.
GEODIS AirDirect Service Between Europe - USA

The U.S. government issued a 30-day ban on travel from Europe and The United Kingdom which will have a significant impact on the movement of trans-Atlantic cargo. GEODIS offers regular flights per week, 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 Liege, Belgium with connecting service to European Gateways. Book now!

GEODIS AirDirect Services Between Asia – Europe - US 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:
  • Xiamen to Paris(CDG) with a scheduled departure on 1 June 2020

    Please reach out to your GEODIS contacts for more information. 
GEODIS AirDirect Europe to Australia / New Zealand
GEODIS is extending the charter solutions to secure the required capacity for our customers for shipments from Europe via Frankfurt gateway and to Australia via Hong Kong. The flights will be twice a week:
  • Frankfurt to Hong Kong Thursdays with an onward journey from Hong Kong to Sydney Fridays arriving Saturdays
     
  • Frankfurt to Hong Kong Sundays with an onward journey from Hong Kong to Sydney Mondays arriving Tuesdays

    For further info on this service, please view it on the flyer HERE. Please reach out to your GEODIS contacts for more information.
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
We have also set up additional block train services between China and Europe to support the dispatch of urgent shipments. Details of the rail solutions between China and Europe with schedules and routes are as follow:

Standard Solution:
  • Xi´an to Hamburg or Duisburg, via Małaszewicze with approx. 18-day transit time, terminal to terminal for FCL shipments. Planned departures every Monday.
     
  • Hamburg or Duisburg to Xi’an, via  Małaszewicze with approx. 18-day transit time, terminal to terminal for FCL shipments. Planned departures every Wednesday.
     
  • Chongqing into Duisburg, via Małaszewicze with approx. 18-day transit time, terminal to terminal for LCL shipments. Planned departures every Sunday.
     
  • Chongqing into Małaszewicze, with approx. 14-day transit time for LCL shipments. Planned departures every Friday.
     
  • Duisburg into Chongqing, via  Małaszewicze with approx. 18-day transit time for LCL shipments. Planned departures every Saturday.
     
Express Solution:
  • Xi’an to Hamburg via Mukran with approx. 12-day transit time, terminal to terminal for FCL & LCL shipments. Planned departures every Wednesday.
     
  • Hamburg to Xi’an via Mukran with approx. 12-day transit time, terminal to terminal for FCL & LCL shipments. Planned departures every Monday.
For bookings and more information, please contact your GEODIS representatives.

Market Outlook:

AIR FREIGHT PRICING TREND CHINA TO EUROPE, CHINA TO US YOY
This crisis has of course a strong impact on pricing to/from China, from Hong Kong and to/from USA/Europe, HERE.

 

 

 

Source: The TAC Index, published 1 June 2020

The easing of lockdowns, especially across much of Europe, has helped demand for container freight gradually get back on its feet to take the first tentative steps toward recovery.After a few months in which demand tumbled around the world, the re-opening of some shops, with more expected in the coming weeks, has resulted in a sudden jump in demand, especially as there are large numbers of vessels out of the market following the void sailing measures by carriers.However, there are some concerns emerging on the Asia-Europe tradelane over a gap starting to grow in prices offered for container freight.Some carriers have reduced rates in an attempt to boost cargo numbers, and this has created a dilemma. The lower rates have attracted more cargo, which has left some vessels at over 100% capacity with some cargo rolled. This has put already fragile supply chains under further pressure.On top of this, looking beyond the short-term boost from easing of lockdown restrictions, are the tremors of an economic slump that all but the most bullish analysts are bracing for.This could have a significant impact on container freight should consumer demand change.

Apparel factories in Bangladesh are still running at half-capacity after orders dried up, and bosses remain pessimistic about the likelihood of new orders any time soon.  Amid the impact of the Covid-19 pandemic, factories which laid-off part of their operations are struggling to make a full comeback, leaving hundreds of workers jobless.  And this week several more factories terminated hundreds of workers, as they are not receiving enough orders from western buyers.  President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr Rubana Huq told The Loadstar only 50% of normally expected orders were coming in nowand she is not expecting a return to full capacity soon.

Source, The Loadstar, 3 June

For the latest statistics on Coronavirus situation, please refer to the link 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

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