• Global

(Nov 10, 2020) - Equipment availability remains very tight all over Asia with critical stock inventory in CN, VN, TH, but also India, Korea as well as Chinese inland places. Carriers push for utmost empty positioning activities ex Europe and North America back to Asia. At the same time, rates in all main trades remain high and keep on further increasing, especially from Asian Origins. Carriers apply very strict yield management and prioritize equipment release and space accordingly.

Capacity ex Asia runs at fullest utilization, in addition to the extra loader programs continue. Market is expected to produce full ships until Chinese New Year in January 2021. Given this positive momentum, industry analysts have revised their earlier more negative anticipation of the ocean freight to a more moderate negative 6% volume growth for 2020, with an outlook of a growth in 2021.

The current circumstances make it very important for our customers to plan volume forecast (we advise 4 to 8 weeks in advance) and be flexible to re-route cargo (for congested destinations).

The situation for exports ex Europe is more calm, however volumes on the exports are improving and vessel utilizations increase. Rates remain stable with a trend upwards.

Only export-volumes ex Europe to South America remain slightly depressed.

Please expect the situation on all trades subject to continuous changes.

With an uncertain outlook on vessel utilizations and partly huge impacts on port terminals, we need to prepare for changing schedules and transit times (due to slow steaming, port omissions or additional port inclusions as a result of service mergers), sudden / unexpected delays in uplift, increased bottlenecks of equipment availability, inconsistent departures and sudden surcharges possibly resulting in higher costs for the supply chain.

Our experts in Ocean will support and guide for:

→?DB SchenkerOcean priority product on all main trades which guarantees loading within a fixed window.
→ Various DB SchenkerOcean delay in transit options (a. stopping of cargo in a t / s port, b. using own or contracted warehouses and store goods accordingly), this reduces actual cost in the ports (costly storage) and helps ports to prevent from being congested and thus ensures moves at quay without waiting time for truckers.
→ DB SchenkerOcean offer for “slow boat – fast boat” possibilities if delay in transit is not an option (e.g. with sailings around Cape of Good Hope).
→?DB SchenkerOcean offers for alternate routing possibilities to ensure cargo is lifted from port of loading.
→?Volume forecast and allocation planning: We have access to volumes on all alliances and support volumes planning through consultation services (allocation match based on customer forecast). Under progress: volume prediction per vertical.

→ Contact your DB Schenker Account Manager regarding Personal Protective Equipment services ex China Europe.

• Europe?

(Nov 10, 2020) - On trades to the West, the utilization to North America has improved to over 90%, however LATAM destinations are in decline. It is expected that carriers will take additional actions on curtailing the capacity.

On exports ex Europe to the East, carriers still report strong booking situations with only limited shortfalls. Especially commodity volumes are still going strong (logs, chemicals). Equipment availability becomes a larger concern due to an upcoming 25 - 40% reduction of inbound flows plus expected longer usage of the equipment.

All European Ocean Freight Branches are fully functioning operationally.

• Asia Pacific?

(Nov 10, 2020) - There are no significant updates operationally, status remains unchanged.

Though resurging COVID-19 infections are evident in some countries across APAC, our Ocean operations remain stable and available to support customer needs. Delays could be expected in customs clearance and transportation.

→ Alternatives to move / transport cargo via other gateways / routes are established. Customers may contact the respective DB Schenker representatives for support or solutions should it be required.

• Middle East/Africa?

(Nov 10, 2020) - DB Schenker is able to manage the current demand from customers even though an equipment shortage has been seen in the region.

→ Please get in touch with your DB Schenker Account Manager for the latest rates.

• Americas?

(Oct 13, 2020) - On the exports ex NORAM it is worthwhile to mention that especially to Asia, the vessel utilization remains strong with no inflation of market rates expected. Void sailings and service suspensions causing severe shortage of space on all North American gateways resulting in high vessel utilization factors across the board. Roll-overs and yield management are being applied by carriers. Extra loaders deployed and services being reinstated on ad-hoc basis. Asia to North America is peaking further and bookings Asia to South America have come up massively during the past two weeks. We continue to monitor the situation.

• Global

(Nov 10, 2020) - Europe Land is fully operational and available for business, managing existing constraints re-established during wave 2. Asia gives a heterogeneous picture with most countries fully operational and available for business while a few countries (such as India) are facing challenges, however operating. Asia Land bridge (China – South East Asia) as well as Eurasia Land bridge (China – Europe Train) are fully operating, although facing congestions. Land operations in the Americas are also showing constraints, but still working close to normal.

• Europe?

(Nov 10, 2020) - Restrictions to contain the COVID-19 pandemic are re-established in several European countries and in parts directly or indirectly affect the transportation of goods. For any potential cases of disruptive conditions, we follow our pre-defined contingency plans to ensure flows of cargo as much as possible. In addition, we are adapting our transport service offerings daily to the needs of our customers.

Some receivers continue to have limited operations and we ask all shippers to check the delivery possibility with the consignee to avoid cost for storage or return shipments.

Are you up- or down-scaling your business activity in response to the changing market environment? DB Schenker Landtransport is your partner with one of the strongest and most resilient networks across 40 countries in Europe. Moreover, with our digital channels like connect4Land we offer a 24/7 entry point to our transport services, easy to use from everywhere, every time – Click. Ship. Done.

• Asia Pacific?

(Nov 10, 2020) - There is no change in operational status nor updates since the previous advisory.

Our Domestic Land product continues unabated to provide our regular high level of service.

Our Asia Landbridge FTL / LTL road service still encounters intermittent reactionary border closures. However, all crossings are officially operational now the Thailand / Myanmar border has reopened. Border congestion due to high demand can add between 1 and 3 days to long distance trucking. DB Schenker staff at our border offices ensure lead-times are minimized through “triage” prioritization.

Additional labor and associated domicile costs are still required to strategically avoid lengthy quarantine periods for our international drivers.

Congestion levels continue to fluctuate on our Eurasia service for Rail and Road. We therefore recommend checking estimated lead-times with your Account Manager. Due to our dominance on this lane, DB Schenker are best positioned to provide optimum transit times to our customers.

Our Domestic and International road and rail services continue to meet the high demand and are strategically positioned to meet the forecast demand spike associated with ongoing reduced Ocean freight and Airfreight capacity.

→ Eurasia Land bridge

• Middle East/Africa?

(Nov 10, 2020) - International GCC land border connecting Saudi Arabia to other countries has been opened for land transportation / land freight movement with limited operations.

• Americas

(Oct 27, 2020)??-

→ ?USA: USA still experiencing tight capacity on West Coast, South Texas and in the Midwest. Anticipate capacity to be tight throughout the remainder of the year, as we continue into the peak season. Port volumes in Newark and Long Beach continue to keep drayage capacity very tight.
→ ?Brazil: Market is running in normal conditions.
→ ?Mexico: 100% fully operational.
→ ?Canada: No issues on capacity.