Coronavirus (COVID-19) Impact Report · Since our last report, all leading stock market indices have continued their upward trajectory, along with oil prices, thanks to the swift

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Coronavirus (COVID-19) Impact Report

Coronavirus (COVID-19) Impact Report Rev # 0 deugro-group.com June 04, 2020 Page 2 of 24

Index Coronavirus (COVID-19) Impact ‒ Executive Summary 3

Ocean freight overview 4

Commercial overview – Containers 4

Idle containership capacity and blank sailings 5

Breakbulk and chartering 7

Digitalization in the maritime industry 8

COVID-19 port restrictions 9

Equipment imbalance 10

Air freight overview 11

Capacity 11

Rates 12

EU travel advice and border measures 14

Current operational status of our branches 15

Country updates 16

Europe 17

Americas 19

Asia 20

Middle East 22

Africa 23

Useful links 24


Coronavirus (COVID-19) Impact

Update 9 | June 4, 2020 This is the ninth deugro group COVID-19 update, focused on the changing impacts the virus is having in terms of global logistics and supply chain activities. Since the last report, issued on May 20, the total number of recorded infections has increased ever further. According to Johns Hopkins University, on May 19 there were 4.8 million cases recorded globally, having now increased to over 6.3 million. The USA continues to have the highest number of confirmed cases, with over 1.8 million recorded. This is followed by Brazil with almost 527,000 and Russia seeing over 423,000 conf irmed cases. Despite the continued rise in infections, an increasing number of countries are cautiously easing the COVID-19-related lockdowns in order to reopen schools, stores and countries’ economies. European countries are lifting measures more gradually than those in East Asia, mainly reflecting the more severe outbreaks throughout Europe. East Asian countries have progressed much further with testing, tracing and PPE production, largely due to past experience and different cultural practices. Air charter and f reighter operations remain at a record high, with steady growth in demand as lockdown eases. Rate levels have stabilized slowly during the ongoing pandemic, but future passenger demand, quarantine rules and new measures for flights and airports are crucial factors that will influence the development of the global air freight industry in the coming weeks. The ocean f reight markets, which have been some of the worst affected by the COVID-19 pandemic, remain volatile. Container freight rates continue to rise in the beginning of June. This is due to the slowly increasing demand for goods worldwide, coupled with major cancellations of container carrier sailings as their strategy to address the large drop in volume earlier in the pandemic. The breakbulk carriers continue to struggle to fill vessels due to decreased demand, an uncertain outlook and postponed major projects. We continue to closely monitor the global situation. Shippers demand ocean and air freight services that are easy to use, flexible, efficient and reliable. The market has responded with the global acceleration of digitalization within the maritime and aviation industries during the recent months as a result of the COVID-19 pandemic. The pandemic has highlighted the importance of electronic bills of lading and airway bills in avoiding cargo delays. Such electronic documents are proving to be key to the simplification and digitalization of global trade. Since our last report, all leading stock market indices have continued their upward trajectory, along with oil prices, thanks to the swift resurgence of demand for minerals, particularly in Asia. Bloomberg reported lines of oil tankers forming at China’s main oil import facilities, where the state-owned refineries cannot process the oil imports quickly enough to be able to provide a secure fuel supply to support the restarted Chinese economy. The number of project constructions sites impacted by COVID-19 infections is decreasing. Stakeholders are rapidly learning to identify and prevent further outbreaks by changing numbers on sites and by implementing additional control measures and social distancing to reduce disruption to project operations. The deugro group is combining the strength of all its companies to navigate through these challenging times. Our core values and global strength enable us to have continued good standing and capability to support our clients and partners across regions and industries. Our number one aim remains the safety and health of our employees, clients and partners. While we see positive steps with several countries relaxing the lockdown rules and encouraging people to return to work, we remain cautious and encourage our partners to adhere closely to their governments’ guidance. We are glad to share that a growing number of our offices is seeing an increase in business activity with our clients. Should you have any questions, please continue to engage with your local deugro office. We will always strive to support your enquiry to the best of our ability.


Ocean freight overview The container and breakbulk sectors are some of the most affected from the unprecedented effect of the COVID-19 pandemic on the global economy. Sales of containerized consumer goods have been hit hard by lockdown measures and by reduced consumer spending power over many months. With the easing of the lockdowns in many countries, there has been a slight increase in demand for goods in Europe and the USA. Despite the slow reopening of the economies in many countries, consumers are still reluctant to spend due to rising unemployment levels and lack of widespread testing or a vaccine for the coronavirus. In the beginning of June, there continues to be an increase in freight levels for container shipments. This is not so much related to the slowly resuming demand for goods, but mainly due to the significant amount of blank sailings announced by carriers on all major routes. In some instances, carriers are even canceling the blank sailings originally announced or rolling over bookings. Breakbulk carriers continue to struggle to fill their vessels, severely impacting earnings. Freight levels continue to reduce due to a significantly reduced demand for bookings. During late May 2020, the Baltic Dry Index fell to its lowest since 2016. Although we see a slight improvement in June, the outlook for the breakbulk market remains difficult.

Commercial overview – Containers

In the beginning of June 2020, there appears to be a positive development in economies gradually coming out of lockdown. With the slight increase in demand for goods, container carriers are reviewing their blank sailing schedules, freight rates and capacity. The container industry is perhaps the shipping sector that is most affected by the COVID-19 pandemic. The global container trade is still heavily impacted by disruption to the world economy, consumer activity and demand for goods. Although we see some improvement in the demand for goods this month, the long-term recovery may be still some way off. Container f reight rates continue to strengthen in the beginning of June 2020. The gradually increasing demand for container freight and the blank sailings introduced by most carriers are keeping freight rates high. Some carriers are even announcing that they are reinstating a small number of sailings from Asia to the USA in June, while others are announcing rate increases to Europe from Asia. The increased demand has already led to high utilization figures and, in some instances, cargo is even being rolled.


The increased freight levels can be seen in the year-on-year comparison of the Freightos Baltic Global Container Index™ (FBX) as shown in Figure 1. The FBX is a set of indices that reflect ocean container transport spot freight rates across 12 global trade lanes.

Idle container ship capacity and blank sailings

The major container carriers introduced blank sailings at the beginning of the COVID-19 pandemic in order to address the huge drop in volume across major trades globally without the need to reduce freight rates. As reported by BIMCO, the idle container ship fleet achieved a new record in May 2020, at 2.65 million TEU, because of blank sailings as a result of the shutdown of manufacturing in China in February. The large idle f leet has, so far, been enough to support freight rates. While savings are made by not sailing—with voyage costs and some operating costs avoided—the empty ships are still generating a loss on a daily basis without

bringing any income, with some of the operating costs still present and financing costs unchanged.

Figure 1: Year-on-year FBX Global Container Freight Index

Figure 2: Container ship fleet growth


In the beginning of June, we are observing that the number of cancellations is decreasing progressively from April to June by an average of 22% from one month to another, while the overall capacity deployed in the Transatlantic, Transpacific and Asia ‒ North Europe / Mediterranean shrank by 9% from June 19 to June 20. According to Drewry’s Cancelled Sailings Tracker, 12 sailings have been withdrawn on the Transpacific, Transatlantic and Asia ‒ North Europe / Mediterranean trades in week 26 (June 22‒28, 2020), bringing the total blank sailings for the month of June to 58, as opposed to 468 scheduled sailings (11%).

Figure 3: Blank Sailings Tracker by major carriers (source: Drewry Cancelled Sailings Tracker)

As we see a gradual recovery in the supply/demand market, it appears that carriers are seeing enough demand to reduce the number of blank sailings. However, it seems unlikely that demand will revert back to normal soon. Therefore, we expect carriers may have to continue introducing blank sai lings in the summer of 2020, although not to the extent that we saw this spring. deugro is working closely with its clients and vendors to ensure that bookings are made on time, to anticipate delays and longer lead times and to select the best sailing schedules in order to ensure that critical cargo is delivered on time and projects’ required on-site dates are met.


Breakbulk and chartering

The COVID-19 outbreak continues to disrupt the demand and supply side of the dry bulk market this year. In the beginning of June 2020, we are seeing an uncertain outlook and tonnage imbalance in this sector. The outlook for the breakbulk market remains poor, as negative demand shock and overcapacity come together to send rates to multi-year lows. Even a return to work in China is not enough bring a boost to the market. The reopening of China has provided some upwards support to freight volumes; however, rates remain low. Volumes of China’s major dry bulk imports have posted year-on-year growth throughout the crisis. Iron-ore imports are up 5.3% and coal up 27.8% in the first four months. The Baltic Dry Index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities around the world, plunged to its lowest on May 14 af ter USA‒China tensions escalated. The index rose to as high as 506 on May 26, boosted by higher demand for larger vessels and as countries began to ease COVID-19 restrictions.

Figure 4: Baltic Dry Index (source: Bloomberg)

Despite the small improvement of the BDI last week, given the overcapacity of vessels on the dry cargo

market, reputable industry sources such as BIMCO expect average freight rates to be in loss-making territory in 2020. This will only be exacerbated by the negative demand from COVID-19.

BIMCO reports that capesize earnings have been well below the average 15,300 US dollars per day needed to break even, falling to just 1,992 US dollars per day, its lowest level since March 2016. While smaller vessel sizes did not reach such a low point, earnings only reached break-even levels for a brief period, with most of the year at loss-making levels.


With the reduced demand for goods and the postponement of major o il and gas and industrial projects, the outlook for the breakbulk industry continues to be pessimistic. Even with large government investments, the global recession is leading to lower demand and low freight rates. There may be changes coming in the breakbulk market, such as changing ships’ distribution and reduced competition. It is possible that many ships will go for scrapping and there will be a shortage of vessels. In the longer term, we may see fewer ships and fewer carriers in this sector. Get in touch with your local deugro office and we will work with our internal global charter team on these matters. Together.

Digitalization in the maritime industry

As a result of the COVID-19 pandemic, we have observed global acceleration in the digitalization of the maritime and aviation industries during recent months. Shippers are seeking technology-led products and services that meet their needs more effectively and enhance their experience. Many freight forwarding companies are responding to this demand by working hard on improving the experience of importers and exporters, by offering more transparent and smarter shipping products and by investing in technology. Shipping lines and airlines are realizing that by removing the paperwork and using more innovative ways of working that utilize modern technologies, they are also lowering supply chain costs and improving ef f iciencies. The pandemic is highlighting the importance of electronic bills of lading and airway bills in avoiding cargo delays. Such electronic documents are also proving to be key to the simplification and digitalization of global trade. The Digital Container Shipping Association, formed by major carriers such as Maersk, Hapag-Lloyd, Mediterranean Shipping Company and Ocean Network Express, recently announced an initiative that could potentially save the container industry billions of dollars per year by 2030. It is driving alignment and digital

Figure 5: Dry bulk earning and break-even levels


standardization to enable transparent, reliable, easy-to-use, secure and environmentally friendly container transportation services. Lloyds List reported last week that the association is developing open source standards for necessary legal terms and conditions, as well as definitions and terminology to facilitate communication among customers, container carriers, regulators, financial institutions and other industry stakeholders. The association estimates that even with a 50% uptake of electronic bills of lading, the sector could save as much as 4 billion US dollars per year by 2030.

COVID-19 port restrictions

The general picture is that most ports are fully operational for cargo business and have closed or restricted operations for passenger vessels, especially cruise ships. The vast majority of ports are endeavoring to have all cargo-related services operational 24/7 while ensuring a safe working environment for shore and office personnel. Even if cargo operations continue to function normally, in many cases governments and/or port authorities will have introduced safety regulations and restrictions inter alia related to the movement of ships’ crews, truck drivers and other people needing access to port facilities. To help make this easier, we would like to share the “COVID-19 Port Restrictions Map,” produced by Wilhelmsen Ships Service. It provides status updates twice per day of restrictions at a click on countries and ports. Locations with updated information from within the last 24 hours are highlighted. The map can be viewed at: https://www.wilhelmsen.com/ships-agency/campaigns/coronavirus/coronavirus-map/

Figure 6: COVID-19 Port Restrictions Map by Wilhelmsen Ships Services

https://www.wilhelmsen.com/ships-agency/campaigns/coronavirus/coronavirus-map/


Equipment imbalance

The global lockdown and subsequent downturn in economic activity, along with the fall in consumer demand, means that containers continue to be stuck in ports worldwide. Although we noticed a gradual improvement in the container imbalance in the beginning of May, this week we notice once again an increased container imbalance, with the majority of equipment surplus seen in Asia. The graph below shows an overview of the current container availability worldwide for calendar week 21. The data is based on CAx (Container Availability Index). The main change from week 21 is the resumed availability of containers in Shanghai and India, lack of 20' and 40' HCs in Singapore and Port Kelang. There is a stark lack of availability of all types of containers in Belgium, the Netherlands, Germany, Italy, South Africa and the USA.

Region Port 20' DV 40' DV 40' HC

Asia

Shanghai

Qingdao

Singapore

Port Kelang

Europe

Genoa

Rotterdam

Antwerp

Hamburg

Africa Durban

North America

Chicago

Los Angeles

India Nhava Sheva

Figure 7: Calendar week 23 | Container availability worldwide (source: xChange)

Red – Def icit of containers (incl. full and empty units, SOC and COC) Green – Surplus of containers (incl. full and empty units, SOC and COC)


Air freight overview Since the global spread of the COVID-19 pandemic, the aviation sector has almost been brought to a standstill. A balanced and effective restart and recovery will depend on collaboration among the key participants in the global aviation industry. Grounded fleets and lack of space are putting the entire industry under a lot of pressure. The global air f reight network with 24/7 accessibility to freight forwarders, shippers and cargo owners is vital to international trade and the global economy. Many airlines are planning for resumption and keeping a close watch on the quickly changing environment as countries start to relax their access requirements with the easing of their lockdowns. Top priority for all stakeholders is to minimize the risk of transmission of the coronavirus at airports and on board aircraft, and to prevent aviation becoming a meaningful source of international reinfection. The Loadstar reports that air cargo will be a crucial area of resilience for airlines and airports for the foreseeable future, whereby commercial traffic will potentially only return at a slow pace as businesses become more accustomed to video conferencing and companies continue to put limits on employee travel. Investment, innovation and flexibility will be strong drivers in the future. Especially the fast-growing e-commerce sector for all kinds of goods is calling for the restructuring of the air cargo industry away from f ragmented systems to common interfaces of shippers, forwarders and airports—with investments in integrated digital infrastructures and platforms to enable seamless shipment management for all stakeholders involved. The need for digital solutions has become very visible during the months of the pandemic, and the need for smart solutions to overcome obstacles is more important than ever. The current crisis is potentially a good springboard from which to innovate.

Capacity

The drastically reduced number of passenger aircraft carrying cargo across the world is influencing the overall space capacity in the first week of June as well. While capacity shortage is easing on the Transpacific and Asia / North Europe rates, space remains tight on many other lanes. Seabury Consulting reports that overall cargo capacity is down 26% compared to a year ago, compared with ‒28% the week before. Overall, we are seeing a slow stabilization of freighter capacity, while belly capacity

continues to recover due to passenger f reighter deployment.


Also, months into the global pandemic, airlines continue to add capacity to the market by transforming passenger aircraft into cargo jets. Air France, British Airways and Swiss International Air Lines just recently removed seats from Boeing 777 aircraft to free up capacity for cargo. The reconfiguration has enabled some airlines to keep a small amount of their fleet in the air and to fly at lucrative rates; however, the operating costs remain high and are putting many airlines at the brink of collapse. Air charter availability is slowly recovering compared to fully booked planes during the month of May.

Rates

Overall, the air f reight market is improving with freight rates, as well as fuel surcharges experiencing a slow downward trend. Nevertheless, short-staffed operators and reduced working hours at many airports are causing large airport hubs to experience delays in cargo handling and aircraft processing. As rate levels stabilize, the majority of airlines are still not able to offer end-to-end routings since a huge number of aircraft remain grounded and services suspended until further notice. Constant changes to nominated transfer airports and routings on short notice are hindering precise shipment tracking. The latest statistics of airport cargo capacity outline that several traditionally large airports have been affected heavily and are currently not ranking among the top 10 airports (by capacity).

Passenger demand, quarantine rules and new measures for flights and airports are crucial factors that will inf luence the development of global air freight capacity in the coming weeks. deugro’s dedicated air charter team is in constant communication with its strategic airline partners to

ensure access to the capacity required for our clients.


Intra-EU, cross-border cargo transfers In the attempt to slow the spread of the coronavirus, the borders of most EU countries and Russia remain of ficially closed to all but essential travel. Cross-border trucking of cargo is possible to allow keeping supply chains open. Many loading and unloading points are currently experiencing long waiting times due to extensive security checks, reduced staff and shortened opening hours, despite so-called Green Lanes being implemented for cargo trucks to ease cross-border traffic. The transit time in pre- and on-carriage may be elongated slightly due to reduced freight capacity, truck availability, and extended processing times at border controls as well as strict sanitary measures in place. On the website COVID-19.sixfold.com, you can easily monitor the expected times that trucks are currently spending for crossing intra-EU borders.

Figure 8 Sixfold website map with border crossing time (dated June 3, 2020)

The border crossing time is the average time that trucks spend in the border crossing corridor. These corridors are approximately 10 kilometers long; their centers are displayed on the map.

https://covid-19.sixfold.com/


EU travel advice and border measures

Several EU travel restrictions remain in place, in the national governments’ attempt to contain the spread of the coronavirus across Europe. Below is a map showing various restrictions implemented by countries across Europe:

Figure 9: Restricted movement of people across the EU (dated May 14, 2020)


Current operational status of our branches

Figure 10: Current operational status of deugro branches (dated June 3, 2020)

Dark Gray – Branch operational, personnel working remotely from home

Medium Gray – Branch operational, staff on rotation

Blue – Branch operational, with required measures in place


Country updates Because some markets/countries are more in the spotlight due to the intensity of the virus spreading or due to their importance in logistics, we want to provide a brief update for some of those markets on the following pages. On a global level, the following can be noted:

The f low of goods and essential items remains the priority in the majority of countries. Increased border controls are impacting supply chains and having a direct impact on freight and equipment capacity, transportation costs, operation processing times and delivery schedules. Most ports, ocean carriers and warehouses are fully operational, despite challenges with schedules, vessel space and equipment availability as well as reduced manpower.

Most passenger airlines continue to keep aircraft grounded and services suspended as long as air travel is able to provide safety measures for passengers. The demand for PPE remains high across the globe, heavily impacting rate levels and aircraft capacity, as well as the implementation of COVID-19-related peak surcharges.

Please f ind below an overview of the various regions and short country updates outlining their current status: Europe 17

Americas 19

Asia 20

Middle East 22

Africa 23


Europe

In order to fight the spread of COVID-19 across Europe, border crossings within the Schengen area and between the EU and neighboring countries remain partially or completely closed. All branches are operational, with personnel currently working remotely from home or partly in the office on rotation. Please refer to the table below for the latest country status updates:

Country

Latest lock-down period

Denmark

The Danish borders are

closed, but transportation of cargo is still possible both

nationally and internationally. However,

due to the general closure of businesses, shippers and

receivers are being more careful to minimize contact,

and, in general, delays at the border mean additional

time for transports should be expected.

An increasing imbalance in

markets is impacting the price and frequency for

transportation as well.

All ports are operational, and

deliveries are being made of containers related to ocean

freight transportation. Delays at customers for loading/unloading

should be expected. An increase in rates in general

due to a general imbalance, lack of equipment and lack of

sailings is already in effect.

As with the rest of

Europe, passenger flights are no longer operational,

or at least in limited numbers, meaning that

mainly only cargo flights are operating. This is

increasing the rates significantly at the

moment. All trade lanes currently

operate on an ad-hoc basis only.

No lockdown in

place. People are in general

back at work, but all are using

preventative measures for

minimizing risk exposure as

their physical surroundings

allow them. Borders to

Germany, Norway and

Iceland will open to the

general public on June 13. The

rest of the EU will remain

closed throughout the

summer period.

France

No restrictions in place, but requiring additional booking

notice.

Terminals working almost normally.

Vessels fully booked, and new bookings require additional

notice.

Airports are operating with limited capacity.

Lockdown loosening phase

2 started on June 2.

Green, orange zone system

implemented.

Germany

No general loading bans in Germany.

Ports are fully operational, but space shortage due to import

containers not being collected remains tense. Availability of

standard equipment in hinterland depots remains

critical; availability in ports is slowly improving. Space on

vessels is limited and requires extended prenotice times due to

numerous blank sailings on all trade lanes (EB/WB/SB). Rates

remain at a high level.

Airports are fully operational, with cargo

flights dominating the activities.

The German government is

slowly lifting specific

limitations, with shops opening

and people returning to

work. The warning for

traveling outside of Germany is in

place until June 14.

Italy

Domestic transportation is

operational; manufacturing slowly returning.

Ports are fully operational.

Increasing lack of equipment and rolling of bookings due to

blank sailings.

Milan LIN is fully closed,

and Milan MXP T1 is closed.

Cargo air freight and limited passenger traffic is

being transported from T2 Malpensa only.

Stay at home

order has been eased and

many people are resuming

work. Further updates are

expected in the coming days.


Belgium and the

Netherlands

No restrictions to freight transportation domestically

and cross-border.

Ports are fully operational, and some minor delays are to be

expected due to COVID-19 measures taken at all terminals.

Special equipment requires two to three weeks’ prenotice and

container carriers are still fully booked due to the blank sailing

policy of the past and current weeks.


Passenger flights are mainly suspended; cargo

flights operational.

Measures for the lockdown

will be changed and milder

starting on June 1. Working from

home remains recommended

by the authorities.

Russia

Currently, there are no

restrictions to road freight except for the inland border

with China, which is almost completely shut down for

trucking. Chinese authorities are trying to limit the virus

spreading from Russia and Central Asia back to China.

Crossing the border is extremely difficult or not

possible, subject to the actual crossing point.

Currently, there are no

restrictions on ocean freight and port operations.

International air freight is

temporarily shut down.

Government is

slowly easing lockdown

restrictions.

Scandinavia (Finland, Sweden, Norway)

Domestic and international

road freight is moving normally in all Scandinavian

countries. There might be some delays in border

crossings due to additional checks, and longer transit

time in international trucking is also expected due to

limited ferry connections available (latter concerning

mainly Finland).

Ports are fully operational, but

transit times are affected due to the blank sailings of shipping

lines on main voyages. Feeder connections are not

experiencing blank sailings.

The main airports remain

operational with most passenger flights

suspended, affecting the cargo freight sector.

Because most cargo is transported on passenger

flights out of the region, and up to 90% of these

are canceled, transit times are longer than

under normal conditions. Finnair is converting

widebody passenger aircraft to partially full

freighters and adding capacity, especially to

China routes.

Finland:

Get-togethers of more than 50

persons are not advisable.

People over the age of 70 are to

consider avoiding social

contact.

Sweden: Basically, no

limitations.

Norway: The lockdown is

starting to be eased.

Spain

Domestic transportation is under normal operation. For

transportation by road to neighboring countries,

drivers will need to be heat checked and quarantined 14

days upon their return to Spain.

Ports are fully operational. Customs is working with

reduced manpower.


Spain’s Official State Gazette (BOE) published

on May 29 an order extending restrictions on

non-essential travel for people coming into

Spanish territory until June 15.

Customs is working with reduced manpower.

A State of Alarm has been

declared and is expected to be

extended on June 3 until

June 21.

UK

Domestic and cross-border

transportation are operational, albeit

experiencing capacity issues due to staff shortage

situation of many companies.

Continuous premium cost for collections and airport

transfers.


London Gateway port CFS has closed, restricting container

loading operations. Some blank sailings to the Far

East and Middle East.

Airports are operating

with limited capacity. The majority of flights are

cargo aircraft only, meaning significantly

fewer options for freight and higher rates.

The lockdown in

the UK is being slowly eased as

of June 1. Limited travel

outside of the UK.


Americas

All branches are operational, with personnel currently working remotely from home or partly in the office on rotation. Please refer to the table below for the latest country status updates:

Country

Latest lock-down

period

Brazil

No restrictions inside the country for commercial traffic.

At borders there are restrictions due to customs authorities who

are giving preference to essential items as pharmaceutic

and perishable cargo.

Ports are fully operational, and new bookings require longer

lead times due to increasing numbers of blank sailings.


Airports are operating as usual. A large number of

passenger flights has been suspended. Cargo flights

remain operational in VCP – Viracopos airport as well

as Galeao.

São Paulo is

under

lockdown until June 15; Rio

de Janeiro until June 8.

Canada

No restrictions on road freight.

The Canada‒USA border

remains closed to non-essential traffic until June 22, 2020. Only

essential traffic, including trade/commercial traffic, is

allowed. It continues to be challenging to

find drivers willing to haul freight to/from the USA.

Ports are fully operational. The

existing backlog with containers has no great impact

so far. Canada’s customs is working

and no capacity issues are reported.

Airports operating with

limited capacity. Passenger flights mainly

suspended or very limited. Cargo flights are limited,

and schedules/services are changing regularly.

Lockdown

continues country-wide.

Various provinces have

different plans to start

reopening. Any non-

essential services to

work from home.

Chile

Land borders are closed to

people, but open to general entering or exiting from/to Peru,

Argentina or Bolivia. Implementation of sanitary

customs from Coquimbo to the north (Arica, Antofagasta,

Iquique, etc.) and in the Aysen and Magallanes regions (south).

Local transportation of cargo is allowed but with the usual

sanitary measures (controls, use of masks, shift systems,

etc.)

Ocean borders are closed to

people, but open to general cargo entering and exiting.

No impact on income charges. No impact on shipping

companies due to shift systems.

Airports available for cargo

transfer. Closure of airports for local

passenger transportation. Commercial cargo flights

are not operational. Freighter flights are

operational.

Curfew

decreed from 10 p.m. to 5

a.m., with possibility to

obtain special permission for

cargo transport to guarantee

production and supply chain.

The cities of Santiago,

Iquique, Alto Hospicio and

Lonquimay remain under

full quarantine until further

notice.

Peru

Road freight (only for cargo for import or export) is provided

with some restrictions and to be scheduled from 4 a.m. to 11

p.m. Cargo must get customs form to support their origin, and

drivers must show their trucking company work certificate.

The majority of ports are fully functional.

All passenger air traffic is suspended; only cargo

aircraft is allowed to land. Miami and Viracopos used

as hub airports for supplies and all foreign shipments.

Quarantine will continue up to

June 30 with a curfew in place

from 9 p.m. to 4 a.m.

USA

No restrictions on road freight

as of yet. Borders to Canada and Mexico remain open to

commercial traffic for essential goods.


Vessels are fully booked, and new bookings require longer

lead times due to increasing numbers of blank sailings

to/from the USA.

Airports are operating with

limited capacity. Passenger flights are

mainly suspended; cargo flights operational.

Several states

have issued stay at home

orders for the time being,

some are gradually

announcing the lifting of

lockdown orders.


Asia

All branches are operational, with personnel currently working remotely from home or partly in the office on rotation. Please refer to the table below for latest country status updates:

Country

Latest

lock-down

period

China

No restrictions on road freight. Borders to Mongolia, Russia

and CIS remain open to commercial traffic. But delays

are to be expected, especially for China‒Russia border.

Cross-border rail freight

remains operational as well.

FCL: Ports are fully operational, and business can

be described as normal. Except for still frequent blank

sailings and occasional lack of equipment, which is to be

checked case by case. We recommend two weeks’

prenotice for space and equipment bookings.

Breakbulk: Ports are fully operational, and until now we

have not seen any negative impact on vessel and space

availability. Except westbound sailings have seen a small

decrease in frequency.

International air travel to and from China remains heavily

reduced, which still has a severe impact on air freight

capacities. However, over the past weeks we have

seen a gradual increase in air freight capacity.

Nonetheless, we recommend at least two

weeks’ prenotice and recommend managing

clients’ expectation in regard to service reliability and rate

levels.

No further lockdowns

are imposed. Occasional

COVID-19 outbreaks are

usually contained

within quickly introduced

city district lockdowns,

e.g. as currently in

Shenyang.

India

Due to the lockdown, all states

have closed their borders and restricted movement. Even

though goods can be transported as per the recent

circular issued by the government on April 13,

restrictions on people movement are in place. Thus,

drivers’ availability is still a question. Prior to this, all road

movements were restricted, other than essential products

like food, medicine, etc.

Vessels coming from restricted

countries will have to go into quarantine first (14 days of

wait) and then only after proper checks will be allowed to berth.

Port operations have not been officially suspended; but owing

to restrictions on people movement, it is becoming

difficult to find manpower like stevedores, etc. for port

operations.

Domestic/international

passenger flights have been closed to any airport in

India. International cargo flights are permitted, but

then restrictions on people movement are affecting

cargo handling operations.

The

Maharashtra government

has announced

some relaxation

containment zones and

reopening is scheduled

phase-wise. After June 8,

private offices are allowed

to reopen with a

minimum of 10% of staff

following the guidelines.

Indonesia

Restrictions for traffic in and out

of Jakarta in place until June 7. Cargo transportation/logistics

are not impacted. However, delayed transit times must be

expected if transport has to pass roadblocks.

Ports remain fully operational.

While a health check for crew is conducted for each arriving

vessel prior to berthing, this has not caused any delays in

berthing so far. Customs activities are

ongoing, with reduced physical activity.

So far, carriers are open for bookings.

While few domestic flights

are taken up again, international flights are still

limited or not available. The major airports are

operating at limited capacity only.

Social-

distancing measures are

in place until June 4, while

measures restricting

private travel are in place

until June 7.

Japan

No restrictions to local

transportation.

All major ports are still fully

operational; however, most trade lanes are impacted in

terms of their schedule, space and rates.

Cargo terminals are fully

operational, but impacted due to lack of space

availability, reduced schedules and an increase

in air freight rates on all trades.

Japan lifted

the state of emergency

completely, but 50% will

be working at home until

the end of June.


Malaysia

No restrictions to road freight

within the country. Cross-border traffic between

Malaysia and Singapore is open to commercial traffic.


Increasing lack of equipment and rolling of bookings due to

blank sailings.


limited capacity. Passenger flights are mainly

suspended; cargo flights operational.

Malaysia’s

movement control order

(MCO) has been

extended for a further

month until June 9.

Myanmar

Domestic and international

road freight is possible, but delays of clearance are seen

at border check points. Transit times are affected by

a night curfew from 10 p.m. to 4 a.m.


Vessel space is available but requires longer lead time for

the booking. Port authorities are reducing demurrage and

storage charges. Port authorities sent notification

letter to shipping lines to proceed DO without original

BL. Customs process is slow.

International airport closure

extended until June 15. Relief and emergency cargo

flights will be allowed for landing.

Domestic flights to major cities will be operating

depending on passenger demand.

Lifted

lockdown restrictions in

low-risk townships.

Singapore

No restrictions to cargo delivery or collection.

The amount of manpower and the number of trucks is

limited for operations by each company until the end of

June.

Container depots are fully functional with no disruption.

Container terminals are in operation, with minor

disruptions at some due to shift work. There has been no major

delay in operations. Blank sailings from Asia to the

USA, North Europe, India and Middle East.

Vessels to intra-Asia are stable.

Some airlines are slowly resuming certain services.

Cargo aircraft is still in operation.

Terminals are operating with reduced manpower and

shorter working hours.

Implementation of a three-

phase approach to

resuming activities

safely. Phase 1:

Starting on June 2,

gradually reopening of

economic activities that

do not pose a high risk of

transmission.

South Korea

There are no specific restrictions to inland trucking

within South Korea.

All international ports and terminals remain operational. Port congestion is a factor leading to delays in the

berthing of container vessels as well as in container

releases from the terminal. Changes in vessel rotation are

leading to further delays.

The space situation is very tight since many airlines

have canceled passenger flights. South Korea’s

national airline is deploying their passenger planes on

cargo-only routes.

No lockdown in place;

South Koreans are

slowly returning to

work.

Thailand

No restriction on freight

cargo, but drivers may need to pass through a health

checkpoint. If they do not pass, they may be required to

be quarantined. For convoys, only signal or tail vehicles are

recommended because personal cars will not be

permitted to cross borders. Phuket Island is still closed

except to transport, construction, logistics,

medical and government vehicles. Only small number

of border stations is open for commercial vehicles; smaller

stations may be shut down. Drivers need to provide

license information, and many companies require a

medical form to be filled out prior to entering their

facilities. If non-compliance, trucks may not be allowed to

Ports are fully operational and

require a constant check of the booking status due to constant

changes. Carriers have been canceling, blank sailing or

delaying at other ports in neighboring countries.

On June 1, ports in Phuket Island reopened. Depending

on terminal policies, extra specific forms may be required

to fill out prior to entering. RPE is required for these areas.

Commercial flights are

expected to reopen at the end of June for

interprovincial flights only. Flights between Japan and

Thailand are will resume at the end of June. Only cargo

airplanes are allowed entrance. Shortage of cargo

space during this time. Higher prices and fees also

present. RPE is required for these areas.

Lockdown of

the country will continue

throughout June, when

further instructions

will be announced.

Curfew from 11 p.m. to

4 a.m. is in effect

nationwide for personal

vehicles. Roadblocks

are in place in areas

throughout the nation.


enter these facilities. RPE is required for many companies.

Vietnam

Domestic transportation is

under normal operation; for transportation by road to

neighboring countries, drivers will need to be health

checked and quarantined 14 days when they return.



lead times due to increasing numbers of blank sailings.


Rates have increased

significantly due to less demand.

All domestic airlines have canceled international

passenger flights; only cargo flights are available.

Domestic air traffic is reduced to two flights per

day.

Lockdown

restrictions have been

slightly lifted, and

businesses are resuming

work. The government

has advised all citizens to

return to normal

routines for economic

recovery, but need to

execute precautionary

measures, i.e. wear

masks in public areas.

Middle East


Country

Latest lock-

down period

Saudi Arabia

Currently, road freight is

unaffected, but heavy delays experienced because drivers

need to undergo coronavirus testing at entry point before

entering the country. At the UAE–Saudi border,

UAE number plate trucks are not being allowed to enter the

country and being transloaded into KSA number

plate trucks.

Ports are operating normally,

but labor shortage of stevedores and customs

officials is causing delays.


with limited capacity. Passenger flights are

completely suspended; cargo flights operational.

The government’s

intention is to have eased lockdown

fully by June 21. Until then, the

following curfew periods have been

announced: May 31 – June 20,

8 p.m. to 6 a.m.

UAE

Road for cargo movements is

open for Oman only. Remaining borders are

closed for road movement of cargo until further notice.

Jebel Ali port remains

operational, with normal timing reinstated post-

Ramadan. Abu Dhabi seaports are

operational with limited staff. Equipment availability in UAE

has been impacted. Some carriers require prenotice to

provide equipment for export volumes. This can be

attributed to the lack of capacity deployed to the

Middle East due to COVID-19 and Ramadan lull in business

The situation has not

changed much. The rates are still on a higher

side, with no validity periods provided. Flight

operations tend to change without prior

notice. However, there are overbookings

regardless of space constraints. Aircraft

types are being changed or canceled at transit

airports without notice, making tracking orders

difficult in some cases.

The disinfection

program is in place until further

notice: Dubai: 11 p.m. to

6 a.m. Other Emirates:

10 p.m. to 6 a.m. Business activity is

returning slowly to normal in the

country. Starting on June 2,

there is a ban on traveling from

Dubai to Abu


activity during the months of April and May.

Freighter flights and converted passenger

aircraft to freighters are operating at full swing at

high premium rates. Abu Dhabi airport is

operational with limited staff.

Dhabi, because the latter has

imposed a one-week ban on all

traffic.

Oman

No restrictions to road freight.

Borders to UAE remain open to commercial traffic, but the

clearance process is slower.



lead times due to increasing numbers of blank sailings

to/from the Middle East. Customs is working with

reduced manpower. Electronic Delivery Orders

introduced recently by carriers.


with limited capacity. Passenger flights are

suspended; cargo flights operational.

Lockdown was

lifted on May 29, but reintroduction

is expected at any time due to

increasing case numbers.

Qatar

International road freight is

not permitted due the blockade and resultant

restrictions. Trucking within Qatar so far

normal, though shortage of trucks due to drivers being

laid down with the coronavirus is an issue. Thus,

advance planning is required as much as possible.

Ports are operational, with no

impact as of now. Liners have seen major disruptions on

their sailing schedules. At least 25% of scheduled calls

have been missed so far in the month of June.

Airports are operational

only for cargo. However, with the limited options

available for Qatar (on QR and TK), air freight

requires advance bookings. Rates are

volatile, as always subject to space

pressures.

No lockdown in

place; offices allowed to function

between 8 a.m. and 2 p.m., but

with a restriction of only up to 20% of

total staff allowed in the office.

However, part of the industrial

areas is still closed.

Africa


Country

Latest

lock-down

period

South Africa

All borders are open across

Sub Sahara Africa, allowing cross-border movement for

imports. Customs clearances may be delayed due to

customs checking all the documentation being correct

at time of the movement in line with each country’s

requirement.

South African ports are

operating under the guidance of Level 3 advised essential

cargo. All cargo classified as non-essential on imports is

being moved to shipping lines’ depots to alleviate congestion

in the ports.


limited capacity. Passenger flights are mainly

suspended; cargo flights limited and dependent on

cargo volumes.

South Africa

moved into Level 3

starting on June 1,

allowing most people to

return to work.


For any inquiries, bookings and more information, please get in touch with your deugro contact or local deugro group office. They are available and ready to help.

https://deugro-group.com/contact/

Useful links The links below are source of this document and for information purposes only. Number of confirmed cases worldwide

• https://coronavirus.jhu.edu/map.html Ocean freight – General updates

• www.seatrade-maritime.com

• www.tradewindsnews.com • www.xeneta.com/blog • www.theloadstar.com • www.worldmaritimenews.com • www.hellenicshippingnews.com

• www.lloydslist.maritimeintelligence.informa.com

Ocean freight – Global port restrictions map

• www.wilhelmsen.com/ships-agency/campaigns/coronavirus/coronavirus-map/

Ocean freight – Equipment availability

• www.container-xchange.com

Air freight – General updates

• www.aircargonews.net • aircargoworld.com • www.aircargoweek.com

• www.aerotime.aero • www.tacindex.com/

Oil and fuel prices

• www.shipandbunker.com • www.oilprice.com

Policy tracker of government responses • https://www.imf.org/en/Topics/imf-and-

covid19/Policy-Responses-to-COVID-19 Note: Data as of June 1‒3, 2020

‒ End ‒ Road transportation – General updates

• www.iru.org/

https://deugro-group.com/contact/

http://www.seatrade-maritime.com/

http://www.tradewindsnews.com/

https://deugro.sharepoint.com/sites/marketing/Shared%20Documents/www.xeneta.com/blog

http://www.theloadstar.com/

http://www.worldmaritimenews.com/

http://www.hellenicshippingnews.com/

http://www.lloydslist.maritimeintelligence.informa.com/

http://www.lloydslist.maritimeintelligence.informa.com/

http://www.wilhelmsen.com/ships-agency/campaigns/coronavirus/coronavirus-map/



http://www.container-xchange.com/

https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Faircargoworld.com%2F&data=02%7C01%7Cgiuliana.deferrari%40deugro.com%7Cc5b7c12c89aa470f44d908d7caa48a73%7Ccf8c5066ba21412da818bf950c01403f%7C0%7C0%7C637200680360178530&sdata=%2FYztjKMMWUvgPevhPcVkB79m%2FsoL%2FtFUgugfAOyKLnI%3D&reserved=0

http://www.aircargoweek.com/

http://www.aerotime.aero/

http://www.tacindex.com/

http://www.shipandbunker.com/

https://deugro.sharepoint.com/sites/marketing/Shared%20Documents/www.oilprice.com

http://www.iru.org/