InfoMail Februar 2020 II

China: Effects Coronavirus, Air freight, Sea freight, Rail freight

Dear Sir or Madam,

China: Effects Coronavirus

Factories in China are only slowly picking up again. Only very slowly and carefully. Each province and region interprets the central government's guidelines somewhat differently. In the important economic regions along the coast, not all workers are back by far.

Pre- and onward carriage in the Middle Kingdom is massively hampered by the lack of personnel and restrictions by the authorities. Example: Yesterday, a particularly urgent, smaller shipment for collection in the Greater Shanghai area was not possible by truck, car, taxi or van – not even by e-scooter. The shipment can only be accepted today. Probably. Hubei province is still worst affected. A telling photo from Wuhan

                                                                                                               Source: The Atlantic

China: Air freight

Even though Cargolux only announced this week that it would continue as usual, all previous agreements have been cancelled. Rates are increasing massively. Space is extremely scarce. The largest private Chinese airline, Hainan Airlines, is cancelling all flights from Beijing to Berlin-Tegel. United Airlines from the USA has extended its hiatus for all flights to China until 24.04.20. What is still possible at all? The Chinese airlines Air China, China Eastern, China Southern are flying. Korean Airlines is flying via Seoul (Incheon). Lufthansa Cargo (only by freighter) is flying with a thinned out special flight schedule. Cathay Pacific is flying via Hong Kong. A good overview of who is actually flying can be found at www.fr24.com, for example. There are options. But rates are going through the roof. No wonder: There is far too little capacity for increasing demand.

China: Sea freight 

Reefers (refrigerated containers) are supplied with electricity on board via the electrical system. By shore power in land-based terminals. Free plug-in spaces in Chinese terminals have become a rare commodity. In addition to the already proclaimed congestion (blockage) with corresponding fees, shipping companies are now unloading these types of containers in ports outside of China.

The number of blank sailings – i.e. suspended ship departures – continues to increase. In 4-8 weeks, the effects will be all the more noticeable for exports from Europe to Asia. Then equipment and capacity will be missing. Both are currently stuck in Asia. Rates are increasing massively. The same applies in this instance: Book early.

China: Rail freight

There are currently some trains running in CW9 – also only conditionally. No timetable exists yet for March. It will only be published in CW8-9. Some rail providers have stopped services altogether. It is rumoured that Kazakhstan is closing the border with China. In which case, nothing would be moving on the important southern route. Confirmation is still pending. It is our turn.

In any case, please register early for bookings, be they air freight, ocean freight or rail. Once the Chinese economy starts up again, capacity will really become scarce.

We will gladly keep you informed.
Your SENATOR INTERNATIONAL Team