The July 21, 2021 Edition of DB Schenker's Customer Advisory COVID-19 Global Update
Thanks to the growing vaccination coverage and decreasing pandemic impact, parts of the world are heading towards more regular conditions of business. However, with the spread of new mutations, countries and regions are being hit by new waves of outbreaks causing continuous impact on lives and business.
While improving, the conditions under which we all operate will continue to be disruptive and far from normal. DB Schenker will continually provide their update services as long as the global pandemic influences the economy, with the aim of helping others at this uncertain time.
To to be engaged with DB Schenker's latest updates, and utilize their utmost efforts to support your business with corresponding solutions, please visit their webiste at https://www.dbschenker.com/global/about/press/covid-19-live-feed
Latest report - July 2021
- The airfreight market is preparing for a challenging peak season in 2021 as the market remains largely affected by the pandemic with ongoing impacts to the global passenger flight network and schedules.
- Many governments are still holding on to immigration regulations implemented during the pandemic. The infection rates and situation differ largely by country and continues to have a severely negative impact for new passenger flights as global passenger demand remains on a low level.
- Transportation mode shift conversion is steering additional freight and volumes into the congested airfreight market especially in markets where the container and equipment shortage is impacting the ocean freight supply chains.
- Capacity shortage therefore will be the major challenge in the second half of the year, especially on smaller trade lanes that are already highly congested (e.g. North America to Latin America).
- Access to capacity will be the key driver for uplift in the current airfreight market and preparing for the demand vs supply situation forecasted for the remaining of 2021. All industries are trading up and recovering from the pandemic impact.
- Sliding sailings and in consequence missing repositioning of empty equipment in all main trades resulting as a ripple effect of the Suez blockage, and more recently of the port situation in Yantian. Both impact the available allocation across all carriers as well as the equipment availability for the remainder of the third quarter.
- Volume pressure ex APAC to all destinations remains strong; to last at least until the end of Q3 / 2021. Volumes ex Europe remain strong as well, especially to the Americas, market rates in all main trades have climbed further upwards.
- Global carrier schedule reliability down to 38% and average delay of vessel arrivals of 6 to 7 days.
- Some restrictions to contain the COVID-19 pandemic are still established in some European countries, directly or indirectly affecting transportation. Nevertheless, we see a trend towards more and more relieving of restrictions throughout Europe.
- In case of disruptions, we follow our pre-defined contingency plans to ensure flows of cargo. We are adapting our transport service offerings daily to the needs of our customers.
- Some receivers continue to have limited operations. All shippers may check the delivery possibility with the consignee to avoid cost for storage or return shipments.
- Situation globally remains volatile, especially in APAC region with different governmental restrictions.
- Our operations and respective customer services though remain stable.
- No change in prioritizing protection of our staff and keeping our customers’ businesses running with respective BCP’s and preventive measures in place and being controlled around the world.
- We carry on supporting our customers on short notice with all conceivable warehousing services and offer available idle space, hence please check with your DB Schenker account manager or local contact person.
- To support COVID-19 vaccination, medical centers, respective treatments and preventive measures, we offer handling of medical devices and PPE worldwide, as part of our integrated end-to-end healthcare services.
Fairs, Events and Special Logistics
- Situation globally remains volatile with different restrictions in most countries.
- Leading trade fair markets worldwide are open or partially open.
- First sport events are taking place again and others are scheduled with a strong involvement of our Global Event Specialists.
- Our teams worldwide are in close contact with trade fair and event organizers as well as the respective associations and authorities and able to advise you on the current situation and provide the required services.
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