UPDATE ON COVID-19 (26 FEB 2020)
We would like to share latest update on the outbreak of COVID-19 in China.
General Status
The majority of provinces are now gradually resuming work. Local authorities require enterprises to submit applications for approval to resume work, demonstrating their capability in ensuring strict safety processes and maintaining adequate hygiene for consumable stock, etc. Labor shortage in factories and limited available trucking resources continue to be the major obstacles to the industrial recovery. In several big cities and provinces, the government is actively working on solutions for enterprises to reinstate business.
China’s Member Office service
All member’s offices are open. To best possibly protect the safety and health of our staff and their families, most staff continue to work from home and office hours is shortened until further notice.
Terminal operation
Terminal operations continue loading and discharging vessels, handling current volumes. Ningbo, Shanghai and Tianjin terminals report full reefer yard density. Ningbo and Shanghai terminals report high to full empty yard density. The Nanjing terminal dangerous goods yard is full due to slow pick up. Operations for both dangerous goods laden import and export units are affected.
Depot operation
All ocean terminal depots remain open. Empty pick up and laden return service work as normal. All off-dock depots have resumed work.
Air freight market update
Passenger flights remain cancelled, but freighters are resuming service steadily this week although cancellations will take place with little warning if volumes are not sufficient to support a flight. Therefore, there may be delays due to last minute flight cancelations from this week and forward. We foresee volume will be ramping up over the coming weeks - around end of February to early March. Meanwhile, there is also a strong indication that there will be a conversion of ocean freight shipments to air for urgent cargo, which could sharply increase market demand.
Intercontinental Rail (ICR)
Overall intercontinental rail capacity has recovered to 60%. The improved first mile trucking connection to intercontinental rail has enhanced the rail space utilization. Some corridors are fully booked in coming 2 weeks, making early bookings necessary.
Hong Kong Office – Alternative gateway into/ out of China
Our Hong Kong member, Link First Global Logistics provide alternative solution for your shipment into/ out of China. Besides the general shipment with proper customs documents which can transfer from Hong Kong to China or vice versa by cross-border trucking, Link First also provide value-added service to deliver sensitive goods, goods with high tax systems or those without appropriate customs clearance documentation from/to China. Said service is legal and price will be based on information customer provided which varies from commodity and size, case by case basis. For more information, please contact Ms. Fanny Tang at fannytang@lfshkg.com and Mr YS Cheung at yscheung@lfshkg.com