Factories in China have begun to reopen but, because regional travel restrictions are still in place, some employees will not be able to return to work immediately. This is especially true for migrant workers from Hubei where most of the coronavirus (n-CoV) infections have been reported. The following is the current status of Noatum Logistics offices:
- Local handling is available in all of our cities, and Noatum Logistics can provide all basic services for air, sea and rail.
- Intra-city trucking services are available in all cities.
- Inter-city/inter-province trucking services remain a difficult challenge due to the following:
- Many drivers are unable to return to their place of work due to travel restrictions.
- Many drivers are unable to leave their living quarters to go to work due to movement restrictions.
- Various cities have introduced lock-down procedures to restrict movement of non-local citizens, especially in Jiangsu and Zhejiang. As a result, drivers are reluctant to accept jobs to/from those places, as this creates quarantine risks for them. Some drivers, however, will accept jobs if paid an additional surcharge.
- The overall shortage of drivers remains a challenge.
- China – Russia borders are opened as the Ministry of Transport of the Russia Federation explained that the decree from the Russian government does not apply to cargo trains.
- There is no impact on rail/road freight cross borders to and from for the time being.
- All major ports remain open and operational. Warehouses have opened but most with limited staffing.
- Backlog and delays are expected to increase with trucking companies advising that it will depend on how soon their workers are able to return to work.
- Ocean carriers are announcing additional void sailings across all trades and services. As mentioned in our last update, the extended shutdown impacts both ocean and air cargo rates. The expectation is that the extended holiday will create an even larger backlog which will push rates up, and delays should be expected.
- Trucking has resumed on a very limited basis and predominantly only in the major cities. Most require advanced bookings and have reported extended transit times due to driver shortages.
- Other “Impact on Shipping Update” :https://www.nepia.com/industry-news/coronavirus-outbreak-impact-on-shipping/
- As a reminder for the USA export market, we expect to see container/equipment shortages at key export container yards due to a lack of inbound containers/equipment which will impact export supply chains
- RU has not started freighter operations on the 12th of February.
- CV has cancelled all commercial services for the time being and only offers charter flights.
- KZ has cancelled all commercial services for the time being and only offers charter flights.
- LH has an irregular schedule which is based on weekly review arrangements. In the coming week, CW8 Freighter operations is scheduled on D 1,2,3,4 only.
- PAX flights are also further delayed now due to a lack of demand.
- As per the latest forecast, this situation will remain for the rest of February and likely continue until mid-March.
Airlines who have canceled, reduced or suspended flights on certain routes to China are as follows:
Noatum Logistics is working with our ocean and air carriers to minimize the expected space and capacity issues and backlog. We will continue to send additional alerts as we receive updates.
For more information, please contact your local Noatum Logistics (formerly MIQ Logistics) representative