As you are no doubt aware, the outbreak of the Coronavirus in Wuhan, China and the related governmental interventions continue to have significant implications on business in general and the logistics industry in particular.
We continue to receive questions on the current situation about the market, DSV’s operations and contingency measures, and on the potential impact on our customers’ supply chains in the period to come.
With this Q&A section we aim to provide answers to some of the most urgent and common questions.
Please note that information provided here is subject to change. For further information please contact your usual contact person at DSV.
What is a coronavirus and what is the Novel Coronavirus (2019-nCoV)?
According to the WHO, Coronaviruses are a large family of viruses found in both animals and humans. Some infect people and are known to cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
For more detailed information please consult WHO’s website: who.int
Has any DSV staff members been infected with the Novel Coronavirus?
To our knowledge no DSV colleagues in China or Hong Kong or elsewhere have been infected with the coronavirus.
DSV is strongly committed to the safety of our employees while working to mitigate any potential impact on the supply chains and operations of our customers. To this end, we have established several preventive actions to safeguard the health and well-being of our employees.
When will operations in China go back to normal?
During the Chinese Lunar Year, companies across China were ordered to keep businesses closed until the 9 February as follows (classification of working time for this period by local government agencies differs):
||Other China Branch Location
|Jan 31- Feb 2
|Feb 3 – Feb 7
remotely at home
|Feb 8 – Feb 9
|Feb 10 – Feb 13
|Regular Work Day
|Regular Work Day
At this point in time, expectations are that businesses will be allowed to reopen again on 10 February. Most cities in China will permit companies to resume operations from their offices, but due to the severity of the outbreak in the region Wuhan will remain closed for business until the 13 February or as otherwise advised.
Expectations are that preventive measures by local governments will continue to be noticeable across China, and can potentially impact public transportation and timely access to our offices. In line with most other companies, DSV will therefore consider operating with only essential personnel present at office locations for a period of time, while staff in general will continue to work from home.
Are DSV operational this week (3 - 7 February) despite the fact that most offices remain closed?
Until offices re-open, DSV China has implemented an “on-duty” schedule for our staff in line with government regulations. To the extent operations can be handled from home and in line with government regulations, we continue to handle business as usual.
Does DSV have a business continuity programme (BCP)?
DSV China has created a BCP working board overseeing all key activities during this critical period. The BCP team works to ensure that the entire DSV China organisation is well aligned and to keep all stakeholders informed about the situation and our contingency measures.
What is the current situation at Chinese ocean and airports?
Ocean: The activity level in most ocean ports in China has been reduced significantly. While ports still receive and unload container vessels and customs authorities are open, most container yards are closed for business. Many carriers have announced blank sailings and trucking companies have maintained operations although some have significantly reduced their activities. Most CFS* warehouses are currently closed as per local government policy (* Container Freight Station warehouses are bonded facilities).
Air: Airports continue to operate fairly normal; terminals, warehouses and customs are open for business. However, the overall air traffic has been significantly reduced and almost all airlines have adjusted their passenger flight schedules in and out of China. In line with reduced activity levels across China, these capacity reductions have been manageable so far.
Based on the prevailing government announcements, we do expect a significant increase in shipping activities after 10 February or whenever cargo availability from shippers will return.
How does DSV prepare for the reopening of Chinese operations expected 10 February?
Considering the current disruptions, we understand that you are concerned how quickly supply chains and international shipping can resume normal operational levels again when China reopens for business. In addition, there is a general concern that the market will almost certainly face capacity shortages for a period of time.
DSV is aware of these concerns and works with our customers to understand your shipping requirements for the coming weeks and to map these against available capacities. As one of the largest air and sea providers we will fully utilize our global core carrier programmes to solicit additional capacities, as needed and available.
In case you foresee significant shipping needs in the coming weeks, we encourage you to contact your dedicated DSV account manager who will assist you with the necessary planning and preparations.
Does DSV have an overview of flight cancellations to/from China and expected trucking shortages?
At this point in time, it is a dynamic situation with continuous changes to be expected. Our account managers are briefed on the situation and receive regular updates from DSV China on the market developments.
Please contact your DSV account manager or other regular contact person for further information.
While we will work closely with our partners to manage shipping requirements to the best of our capability, potential challenges based on government interventions (such as road restrictions and driver shortages) must be expected.
Which changes are expected in storage fees and demurrage charges for import shipments?
Storage fees and demurrage charges will follow regular tariffs, unless otherwise informed.
What is the current status on quarantines and other safety measures at destination ports?
In addition to the announcements by US and Singaporean authorities on health declarations and temperature screenings of vessel crews which have been in China during the past 14 days, we are currently aware of the following:
- Philippines: a 14-day quarantine period for vessels / crew destined for Philippine ports was announced but apparently the information was incorrect and vessels from China are still able to berth with restrictions on crew disembarkation.
- Vietnam: beginning 4 February and in effect for the next 14 days, all import vessels from mainland China to Haiphong need to be inspected at Hon Dau island before they call on the Port of Haiphong. DSV Vietnam is currently checking with the ports of Cat Lai and Cat Map for more information.