The COVID crisis is rapidly impacting markets on a global scale including the movement of people and goods.
DSV is carefully monitoring the evolving situation and remains committed to mitigate the impact on the supply chains and operations of our customers as much as possible.
We understand your concerns and will follow the guidelines provided in regards to pick-up, handling and delivery of goods where possible however, these extraordinary circumstances will inevitably affect our services towards.
The global situation is changing on almost hourly basis and our priority is to act quickly on governmental decisions in each country to minimise the impact on our operations and thus our customers' supply chains.
Governments are getting tougher on the prevention measures of spreading of the virus. We are all experiencing flight cancellation, restrictions of travelling, offices lockdowns when people are sent to work from home, closing schools, cancellation of any larger events etc.
Many commercial airlines are suspending their flights to and from Europe until mid of April or even longer which will have a major impact on cargo movements. 80% of all cargo is being moved on passenger flights.
Both global Sea Freight and Air Freight are affected by current circumstances. It is expected that a domino effect will spread far beyond after blank sailing of the cargo ships: potential lack of equipment in the trades and congested ports will drive pricing up. In absolute terms, inactive vessel capacity easily surpasses the previous highs of 1.52 Million TEU, recorded during the 2009 financial crisis, and of 1.59 Million TEU, recorded in 2016 in the wake of the Hanjin Shipping bankruptcy.
Global Air trade is heavily affected by flight cancellations which have reduced available cargo capacity by 37% (compared to the last year figures) amounting to more than 150,000 tonnes decrease each way. Total cargo capacity from mainland China is down by 50% compared to same period of the last year. The Intra-Asia trade is affected the most as it is dependent on passenger flights. Europe capacity has declined to North East Asia and North America. This will have a direct impact in pricing for the coming months.
DSV’s Crisis Management team in MENA region is closely monitoring the situation but overall situation in the region is following the global patterns. Countries in the MENA region are enhancing the boarder control and implementing limitations on movements. Some countries started applying curfew which impacts the operational schedules and working hours.
The entire GCC region is affected by passenger flights cancellation. Airports in Cairo (Egypt), Qatar, Oman, Kuwait, Saudi Arabia, Jordan, Oman have partially or completely cancelled passenger flights however, the freight flights are being operated as usual. These circumstances are impacting into the regional air freight capacity situation.
Sea freight operation is less affected but there might be delays in shipments handling due to shortage of staff in shipping lines and stevedoring companies.
The Road Freight situation in the region requires a special attention. For instance, all the land borders of Saudi Arabia are closed for passenger travels however, the borders are open for inbound and outbound commercial shipments. Important: commercial transit shipments are limited within range of essential commodities: - Foodstuff, Medical items, Military, Relief/aid items. Similar situation is seen in Iraq, Oman, Jordan.
Due to closing of the airports for the passenger flights, it is expected that a lot of the shipments will be routed to Bahrain or to the UAE and then trucked to Saudi Arabia which might create congestion in the land borders. However, the KSA’s Ministry of Commerce, Ministry of Transport & Saudi Customs are urging the traders to use the air and sea transport methods to avoid the delays due to the current situations, and to give a period to implement closing the land borders.
Please note that this information is subject to change. Contact us for further information
Situation in the United Arab Emirates
Here in the United Arab Emirates, we are limiting the risk of spreading of the virus by having our staff working from home with limited skeleton staff in the office.
As was previously highlighted we see a largest impact within the Air Freight industry as high number of airlines suspending different routes which is heavily impacting the cargo industry. Emirates, the largest carrier in the region and one of the largest airfreight carriers in the world will cancel most passenger flights from March 25th which will have big implications on airfreight space.
Contact us for detailed information on the Sea Freight and Air Freight situation
DSV team in the UAE is working proactively with our customers to understand transport and logistic requirements for the coming weeks and to map these against available capacities. If you foresee significantly increased shipping needs in the coming weeks, do not hesitate to contact us so we can assist you with the necessary planning and preparations.
As one of the largest transport service providers, we are in a position to acquire additional capacities and divert freight in order to work around difficulties.
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We will continue to monitor the situation closely and will ensure that our customers are provided with the necessary information.