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.

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.

• CHINA: New COVID cases in Shanghai and Beijing raised concerns just prior to the Chinese New Year holiday, when traditionally, there is the largest migration of humans on the planet each year. This is a unique year, and the local government has already discouraged people from traveling during the holiday.  New measures for quarantine have also been announced, causing many to pause their planning for travel due to restrictions they may face at destination and on the return to their workplace.
  
  In Shenyang: Liaoning province local authorities introduced a policy to implement mandatory nucleic acid tests on inbound cargo from/via countries defined as High Risk ones. The tests at air/ocean port terminals delays the gate-out and causes chaos at this stage. 
  It is expected such measurement will be implemented throughout all ports in China. Cargo import process delay is foreseen.
   
  In Beijing, the airport import warehouse was closed on 24 Jan, due to positive Covid-19 cargo samples being detected. All staff in operation area underwent nucleic acid tests and remained at warehouse. Hence, some backlog for cargo distribution will be caused, according to the latest update received from Beijing office on 26 JAN in the morning. To clear the backlog around 4-6days will be needed.
   
  In Hebei, as the new local COVID-19 cases have kept falling, some cities such as Shijiazhuang have lowered the risk level. Cargo from some cities in Hebei province can be picked up or delivered to catch planned vessels ex Tianjin Xingang port.
  
  
  You can also find the latest updates on Americas  HERE.

AIR FREIGHT

• Carriers across China have not yet announced their cancellations for the Chinese New Year Holiday period, as there is little transparency of the plans for factories to remain open – at least partially – or shut down.
   
• KLM, Martinair – and other cargo airlines calling in the Netherlands – can operate freighter services normally, after the Dutch government and KLM found a ‘pragmatic workaround’ to new rules. These insist on both a PCR and rapid COVID test for everyone entering the Netherlands and risked leaving crew members in other countries, something KLM refused to do.
   
• New measures against the spread of Covid-19 infections in Hong Kong could cost Cathay Pacific up to a quarter of its cargo capacity. The Hong Kong authorities are planning a 14-day quarantine and seven-day medical surveillance mandate for flight crews returning to the territory after a layover abroad. So far, flight crews have been exempt from Hong Kong’s quarantine rules, but the new regime is planned to come into effect sometime next month, according to The Loadstar.

• Hapag-Lloyd has informed customers that 19 Asia - North America sailings of THE Alliance will not be performed in weeks 5 to 8. Three Transpacific South West services will even have no sailings over two consecutive weeks. The cancellations are part of a comprehensive schedule recovery plan to get vessels back to their intended positions, according to the Alphaliner.
  
  Vessels, port infrastructure and inland logistics services supporting Transpacific cargo movements have been stretched beyond capacity for several months due to very high cargo demand. Ships are facing increased waiting times, which often already exceed one week for vessels calling at Los Angeles and Long Beach. The situation at both Californian ports is now worsening as LA is the epicenter of a COVID-19 surge with hundreds of dockworkers catching the virus.
  
  THE Alliance members (Hapag-Lloyd, HMM, ONE and Yang Ming) in February will also blank one Far East - North Europe and three Asia - Med sailings. The effected sailings are planned in the week after Chinese New Year (12 Feb), but are said to be related to vessel delays.

• 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:

• COVID regulations have impacted cargo capacity. Cathay Pacific has warned that new quarantine rules for pilots and crew will reduce the available cargo capacity by 25%. KLM announced last week that they would suspend as many as 270 flights due to stricter Covid-19 testing rules, introduced by the Dutch government. In an update today KLM announced that the government has agreed to an alternative testing solution that would allow KLM to continue operating their current schedules until further notice. We have been working closely with our partners of our Own Controlled Network, and both parties have contingency plans in place in the event that they are required. Thus far operations will remain unchanged ex AMS.
   
• There is a strong increase of PPE traffic out of China and South East Asia, fueled by new preventative measures in the US and EU and the start of the vaccination programs

• Ocean freight rate volatility 'unprecedented' – look out for ripples, warning. The spread between rates on the spot market has reached an “unprecedented” level, with wide-ranging implications for container shippers this year. Analyzing rates from Asia to North Europe during a webinar this week, freight rate benchmarking firm Xeneta showed how the average spot price had jumped some 2,000% over the past five years. Meanwhile, as shippers grapple with rising freight rates, service levels from carriers appear to be heading in the opposite direction, based on information from The Loadstar.
   
• The Chinese Government looks ready to step in again and put a cap on ocean freight rates. China’s Ministry for Commerce is again looking to step in to stabilise the container shipping market. Media speculation indicates that shipping lines could be called to a series of meetings to discuss the container shortage and high rates. If the Chinese authorities start enforcing antitrust measures, rates will fall – well, FAK and the spot market rates will. Chinese authorities last acted in September with a proposal to refuse to allow carriers to increase the spot rate from China to the US, and to ensure that any suspended sailings would be reinstated. The US, via the Federal Maritime Commission (FMC), has also pledged to watch the market more closely, according to The Loadstar.

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