6th update – November 24th 2020
The corona measures are tightening – we are still there for you!
After a somewhat more relaxed summer during the Corona crisis, new developments are pushing many countries (especially in Europe) and their economies into a corner, resulting in a tightening of the counter-measures being employed. Many countries have partially or completely reintroduced lockdowns and the economies are being destabilised once again. Numerous companies are sending their employees back to the home office, and communication and availability are noticeably reduced.
We are therefore all the more pleased that we can continue to work normally without noticeable restrictions in the office, thanks to a good protection concept and sufficient safety distance so that you can still reach us as usual.
The general transport situation worldwide has not changed significantly compared to the last 6 months.
Capacities have been, and are being restricted by new smartphone releases, personal protection equipment and commercial events such as Singles Day, the upcoming Black Friday and Cyber Monday.
Aviation, especially the passenger sector, is still extremely limited with only very few scheduled passenger flights operating between the world’s major hubs and trading centres. The cargo planes are generally well filled. The explosive rise in air freight costs in spring, which resulted from the lockdown, fell slightly over the summer months, but with the Golden Week in China at the beginning of October and the peak season that started at the same time, they have risen again. Future developments are scarcely foreseeable. Above all, the prices from Asia are again around CHF 10.- per kilo, and it is to be expected that this benchmark will be exceeded by Christmas.
In order to counteract the situation, we recommend to you our «Sea-Air» combined service. The cargo is brought from Asia by ship to Dubai and from Dubai with daily cargo planes to Switzerland at very competative prices with a transit time of around 21 days (in comparison: rail currently 35 days – sea freight 45 days)
Meanwhile, the viable alternative by train from China has also suffered, and since the end of October major traffic jams with departure delays of up to 10 days have been the order of the day. All concerned parties are using all means in their power to alleviate the situation; however, these delays are expected to last at least until mid-December.
In the shipping industry, many shipping companies have cancelled sailings in order to achieve larger volumes and to optimise the load factors of the larger container ships. The lack of ships also delays the return of equipment, which means that container depots do not always have enough containers available and thus bookings and planning and dispatching are made uncertain. Because of this situation, shipping companies have started to give preference to those customers who are willing to pay more than the current market price – akin to a freight exchange. Expect an increase in costs coupled with delays in the coming weeks.
The trend and experience has shown that the situation on all modes of transport will worsen going towards Christmas, but it is very difficult to make any forecast due to the generally uncertain situation.
In any case, we will find the best and cost-effective option for you and thus deliver your goods as promptly as possible despite the circumstances.
Stay healthy – we’ll stay on the ball.
5th update – March 27th 2020
Switzerland has been under “lockdown” for a week now, and the consequences are impossible to foresee. Small businesses in the public sector and the entire travel and transport industry are particularly hard-hit.
The entire aviation industry is affected just as much and has practically come to a standstill worldwide. With the cancellation of almost all passenger flights, most airlines around the world have had to ground their entire fleets. The resulting financial damage can hardly be quantified. Passenger aircraft carry around 70% of the total global air cargo volume. Of course, attempts are now being made to move the enormous volume of cargo via the 30% of the cargo aircraft still operating, but this leads to an huge overload situation for the cargo aircraft and causes a price explosion.
At least one week waiting time is par for the course for imports from Asia, and around two weeks for exports from Switzerland. Prices range from CHF 5 to CHF 15 per kilo in all directions, and both price and space availability must be checked for each individual booking.
Sea freight continues to run more or less normally in terms of handling and bookings. The effects of the cancelled sailings from Asia and resulting missing containers are now very noticeable in Europe, where there is an acute shortage of containers for export. The lack of space due to the lack of ships also has a major impact on the prices.
The rail link between China and Europe has now also reached its limits; From April 1st, prices will be officially increased.
In Europe, the situation in the trucking sector is also getting worse every day. Gen<arally the supply chains remain intact despite border closings, but there are delays to be reckoned with. Italy has now become the first country in Europe to completely stop the movement of goods, with only deliveries of essential goods and medical products being allowed. Given the similarly tragic development in Spain and Portugal, it may be assumed that such drastic measures will also be introduced in these two countries in the next few days. At the moment we are able to maintain all the European trucking routes, longer customs clearance times and longer transit times are to be expected.
We kindly ask you to contact your Cargo Whisperer for time-sensitive deliveries. He/she will advise you and work with you to find the best possible solution. Special transport shipments are still possible – mostly without any restriction.
Please keep in contact with your customers or suppliers and try to let us know their current opening times when placing your order. This is crucial information for us at the moment.
Our employees are making every effort to examine all options so that your orders can be processed promptly. We are still here for you without reservation – you can reach us both by email and by phone. We would like to continue to maintain the personal contact with you all.
We keep you up to date, and wish you all the best. Stay safe and healthy.
4th update – March 17th 2020
Corona virus, the world in a stranglehold – we keep on going
The situation is very fluid and changes virtually by the hour – the corona pandemic has largely paralysed Europe and many parts of the world. Large restrictions and delays as well as price increases can be expected in the commercial and private sectors.
We will keep on going regardless!
In general, the transport of goods continues to run normally – but with corresponding restrictions and delays. Due to the newly-introduced border controls in most of the European countries, there will be major delays in the supply chain. The airfreight sector will also be similarly affected, as many passenger flights are being cancelled, thus affecting the freight capacity. The freight-only airline capacity is not sufficient to take up the shortfall of the missing passenger flights.As a result, freight capacity is extremely scarce and prices are skyrocketing. Every single order has to be checked and confirmed individually. Sea freight continues to be affected by the “blank sailing” situation, as many ships remain in port due to the lack of freight volume. To compensate, most shipping companies are now introducing a moderate price increase. Rail freight to and from China is reaching its limits, and will also see prices increases as from April 1.
We all have to prepare ourselves for a difficult time ahead in the coming weeks, with a lot of patience and understanding. Nevertheless, we remain very positive and will do everything we can to continue to offer you a 100% service. Our teams are present and contactable in all 3 branches; and our sales representatives are also available for personal discussions at your offices, via video or by telephone. We certainly do not want to break off contact with you.
We are ready … We are there for you!
Stay healthy and all the best
3rd update – February 27th 2020
The global situation regarding the spread of the coronavirus has drastically worsened during the past two weeks. Unfortunately, there is no sign of a quick end in sight to the crisis.
The number of illnesses and deaths have increased five-fold since our last report and, regrettably have spread across the world (82,550 infected, 2,810 fatalities)
Unfortunately, cases have also been found in Switzerland, and our neighboring country Italy has been hit particularly hard. Completely unexpected, over 500 cases were reported in northern Italy with 14 dead at the moment, which has led to panic-like chain reaction. Virtually all of Lombardy has been cordoned off, with over 10 villages or villages being quarantined. This close proximity to Switzerland worries and concerns us all, both in business and private.
Frantic overreactions will neither help nor protect. It is therefore important to rely solely on the facts and instructions from the official authorities and to act accordingly.
There are currently no drastic changes in terms of logistics, and a prognosis for the coming weeks is very difficult to make because things can change on a daily basis. With the most relevant facts you can get a brief overview of the current situation concerning global transport:
China:
– Import: At Chinese ports and airports, goods have stockpiled over the past 3 weeks due to only limited processing. Customs clearance and handling are now being carried out again; however, there is a lack of trucks to remove the goods, since many truck drivers have not yet returned to work or are still in quarantine, and many companies are also unable to accept the goods due to reduced levels of personnel.
– Export: Most manufacturing companies have still not fully began to work (30-70%), and therefore relatively few goods are being made available for export from China. As a result, 50% of all ship departures in the last 4 weeks have been canceled (approx. 150 ships), and accordingly around 2 million containers have not been put into circulation, which in return will be missing in March and April in Europe and the USA for worldwide export. How long this “blank sailing” situation will last depends very much on how quickly production and output in China can be restored. But it is expected that it will take at least 2 weeks.
– Air freight in general:
There is still an extensive flight-stop for passenger aircraft to and from China. At the moment, mainly full-cargo aircraft and charter aircraft are operating between China and the rest of the world. The availability of space for exports to China has been a big problem for over 2 weeks, with freight rate increases of up to 500%; and the situation is slowly coming to a head for imports from China. It can be expected that if the flight-stop is extended until the end of March, massive price increases and waiting times of up to 3 weeks can be expected. These forecasts also depend very much on how quickly and to what extent the production and flow of goods from China will develop in the coming 2 to 3 weeks.
– Rail freight in general:
Rail freight between China and Europe is currently playing an important role in compensating for the interrupted supply chain again, as it is being used as a viable alternative for delayed sea freight from China. However, it can be assumed that if there are delays in air freight due to the flight stop, the rail service will also become overloaded in the next 2 to 3 weeks and significantly higher freight rates can be expected.
– Road freight China in general:
Due to far too few trucks, pickups and deliveries within China are currently the biggest problem in the entire supply chain. It can take up to 10 days to organize a pickup or delivery – depending on the location. Trucks that have to drive across provincial borders are sometimes kept in quarantine for up to 14 days. However, pragmatic interim solutions are already offered here by sending employees of local companies to the provincial borders to receive the goods and thus avoid the quarantine. It is still unclear whether this interim solution will be tolerated by the health authorities in the near future.
Italy:
– There has been a state of emergency in northern Italy (Lombardy) since February 21. The region is largely closed off and transport of goods has to be clarified on a case-by-case basis. Officially, goods and people can still enter and leave the rest of Italy without special permission. Despite the lack of any restrictions from the authorities outside of Lombardy, many logistics companies have temporarily suspended transport operations and services for northern Italy. Transport is occasionally offered, but has to be clarified on a case-by-case basis. Rail traffic is currently running normally.
Our truck services to and from Italy are currently operating normally.
Switzerland:
– For the time being, the BAG is not imposing any special measures, neither for freight nor for private transport. The borders to all neighboring countries which are also affected: Italy, France, Germany and Austria, remain open – without any special restrictions or measures.
We all hope that the virus will not spread any further in Switzerland and that the general situation will calm down again in the next few weeks. We will of course keep you informed about the current situation in our blog.
2nd update – February 12, 2020:
The corona virus continues to spread. In the past 7 days alone, the number of fatalities and people infected has more than doubled. The situation remains very tense and unclear. Although since last Monday, February 10, China has officially started working again after the extended holiday (Chinese New Year), most of the production facilities and factories nationwide remain closed, and administrative work is being done from home if possible. The Chinese central bank is responding to the situation and is putting together a package worth billions to combat the virus.
It is very difficult to estimate how long this situation will continue, but it is likely that the extensive shutdown of production will continue for at least another 1 or 2 weeks.
This will have serious consequences for the global supply chain. The flight-stop by many airlines in the passenger sector will continue, and will last probably until mid-March. The few cargo flights to China are already fully booked up to 2 weeks in advance coupled with a price increase of up to 300%. There is currently enough space for imports from China due to the factory shutdown and the lack of cargo.
In ocean freight, departures were again canceled due to the lack of freight volume, which will lead to major capacity problems in March and April in Europe, as the ships of the last 3 weeks will be missing for European exports.
While the extend of the crisis remains unclear, in the short and medium term the world must prepare for changes and constraints in the entire supply chain.
Here is a summary of the facts and figures, as of February 12:
(Source: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6)
- Number of infected people 60’329
- Number of fatalities 1’117
- The situation remains unclear
- Travellers from China to Hong Kong are being placed in 14-day quarantine
- Imports to combat the corona virus have first priority in handling and customs clearance
- Factories and production facilities remain largely closed or operate at very reduced capacity
- Office and administration work is largely being done from home
- Access to public buildings is often only permitted after temperature / fever controls
Truck China domestic transportation:
No inter-provincial deliveries are possible without a 14-day quarantine of the drivers.
Long traffic jams on highways, because everybody is currently stopped at the pay-stations and checked for fever
Huge lack of drivers available
Great lack of capacity, long waiting times, higher costs
Air freight:
Flight-stop by many airlines in the passenger sector remains in force until further notice. Extension expected up to mid-March
Export to China: Freight airlines continue to fly but with very limited capacity. Price increase up to 300% and up to 2 weeks waiting time
Import from China: Freight airlines offer flights, but currently have litte capacity utilization due to lack of cargo. Prices are currently at a normal level.
For bottlenecks we offer alternatives with multi-modal traffic: Sea-Air via Korea & Taiwan (transit time approx. 14 to 18 days)
Sea freight:
At the moment, the situation in terms of capacity and prices are stable and normal, but there is an backlog at the terminals in China due to the lack of staff. Special equipment such as reefer containers are particularly affected. This will inevitably lead to an increase in costs. Blank (empty) sailings are being increased, which means that currently many ships are not calling at Chinese ports. These effects will be felt in exports in March / April. We then lack cargo capacity in Europe. There is already talk of a GRI (General Rate Increase) as from March 1.
Due to the shortfall of ships from China, several million containers are not in their usual circulation.
Rail:
Mostly normal traffic, but the block trains are well utilized in both directions and larger bottlenecks, waiting times and price increases can now be expected here.
(End of Update)
Information as of February 6:
The corona virus is now affecting the whole world and the first consequences are already being experienced globally, both on a private and an economic level. The World Bank is going to lower its growth forecast for this year.
As reported by the media, many airlines have cancelled their passenger flights to and from China up to the end of February. Even some freighter airlines have cancelled or reduced their number of flights. Asian airlines are at least still serving Shanghai and Beijing, but with massively reduced frequecies.
This will inevitably and dramatically affect global supply chains, freight and product prices.
At the moment the effect is still somewhat limited, as the «Chinese New Year» holidays in China have been officially extended by the authorities until February 9, 2020 and therefore the majority of the industry and public transport in China being largely dormant.
If the flight requencies do not increase sharply again from March onwards, an overload of the airfreight capacity can also be expected on the route from China to Europe. We also expect corresponding bottlenecks in rail and ocean freight. The consequence being an explosive price increase on all modes of transport, as well as massively increased clearance and transit times.
It is currently very difficult to estimate what dimensions the extent of the coronavirus epidemic will have on the global economy. We at INTRALOG are already preparing ourselves for an unprecedented situation, and are working with our local partners on possible alternative plans to maintain their supply chains to and from China despite the onerous restrictions.
There are currently no sanctions or restrictions placed on ocean freight either from the authorities or from shipping companies.
Summary of the current state of affairs as of February 4, 2020
– Number of infected people over 20’000
– Number of deaths over 400
– Official quarantined cities in China:
– Chinese New Year extension until February 9, 2020
– from Monday, February 10, 2020, public offices and services are expected to start operating again (partly shift work)
– Production facilities and factories will only be operating at 100% again by the end of February due to the delay in the people returning to work
– Suspension of most flight connections in passenger traffic until further notice, mainly from European and American airlines
– Some freighters are still flying at a reduced frequency
– Asian neighboring countries are currently still maintaining a significantly reduced level of air traffic
Air Freight Export:
Some airlines are operating with greatly reduced frequencies to Beijing or Shanghai. Some freight airlines are also offering departures from Europe to China. Massive surcharges and longer transit times can be expected. In some cases there are already massive markups being applied. We are now looking at transit times of almost 2 weeks or more depending on the destination.
Air Freight Import:
At the moment there is no information available on prices and space availability. We can expect the first details to be available from week 7 onwards.
Railway Export:
Next possible bookings or departures as from February 26, 2020
Railway Import:
Next possible bookings or departures as from February 19, 2020
Sea Freight Export:
For the time being business as normal. However, a lack of space is to be expected from March / April, since several departures from China were cancelled in February and capacity bottlenecks may arise for exports from Europe. Price and space availability depend largely on the flight embargo.
Sea Freight Import:
Some departures have been cancelled due to the extension of the public holidays and therefore there will probably be a lack of space available in February, which may well affect the prices and the transit times. A delay of at least 2 – 3 weeks is to be expected. Price and space availability depend greatly on the flight frequencies.
We will continue to keep this blog up to date. We are also happy to provide you with further information by phone