Covid 19 - Market Summary - Middle East, Africa & Indian Subcontinent Region 10 April, 2020 - Exporters Eastern Cape
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Covid 19 – Market Summary Middle East, Africa & Indian Subcontinent Region 10 April, 2020
GENERAL UPDATES
United Arab Emirates
Government has announced a 24hours, 2 weeks lockdown
on Saturday March 5. This measure is both an extension
and expansion of the previous announcements under the
effort to fight the COVID-19 spread. Logistics services are
exempted so far.
Kingdom of Saudi Arabia
Effective April 7, the Saudi Arabian government has
extended the curfew for a period of 24 hours per day.
Logistics companies and brokers are considered essential
and are therefore exempted.
Our team members already have permits in place to
operate during curfew hours.
Lebanon
Airport is still closed to PAX flights and operating Freighter
services only. Brokers and forwarders are requested to
close their offices by 2:00 PM as per new government
regulations. BEY operations team is operational (remotely)
until 5:00 PM.
© 2015 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
GENERAL UPDATES
Bahrain
Government has suspended all commercial activities
(including shops and malls)except for necessities until April
9.
India
From 25th March, India continues its complete nationwide
lockdown for 21 days in an effort to contain Covid-19
pandemic. The list of essential services related to supply
chain has continued to change.
South Africa:
From 26th March, South Africa continues it nationwide
lockdown for 21 days, end April 16th.
Some exemptions have been made, including essential
transportation services.
© 2015 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
Air Update Covid-19
GLOBAL AIR MARKET
• US – EU Travel Ban went into effect and was
updated to include the UK and Ireland
• Countries across the globe followed to
implement similar bans on travelers from
affected countries
• Already challenged passenger demand has
collapsed further
Source: Seabury • Airlines removed vast majority of passenger
flights in affected regions, and extended
globally
• Substantial impact on available capacity for
air cargo
Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only. 5
* Carrier schedules are fluid due to market uncertainty
AIRLINE SPECIFIC UPDATES
As per the UAE government’s directive, Emirates suspended all
passenger services from March 25th
Significant passenger flight suspensions; 28 freighters flying
full schedule
96% of passenger flights suspended; freighters network
remains intact and ramping up passenger charters
Significant passenger flight cancellations; freighters remain
operational
Majority of passenger flights have been cancelled; freighter
flights maintained
Substantial passenger flight suspensions; freighter operations
continue
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 6
* Carrier schedules are fluid due to market uncertainty
AIRLINE SPECIFIC UPDATES
Robust cancellations across their schedule; passenger flight
cargo charters on offer
Large scale cancellations up to 90%; freighters continue to fly
Substantial schedule reductions internationally; maintaining
some key flights and passenger flight cargo charters available
Implementing a phased suspension on all but a few long-haul
international flights March 16 through May 6
Currently still operating on the transatlantic as well as other
routes currently
From March 23rd, flight schedules significantly reduced;
freighters and passenger flights to limited cargo locations
remain
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 7
* Carrier schedules are fluid due to market uncertainty
AIRLINE SPECIFIC UPDATES
Substantial flight cancellations; Freighters still operating;
looking to utilize passenger flights for cargo only
Significant passenger flight suspensions; Freighters still flying;
alternative passenger cargo only flights available
Freighters still operating; looking to utilize passenger flights for
cargo only
100% passenger flight suspension; Freighters still operating;
looking to utilize 787 passenger aircraft for cargo only flights
Substantial passenger flight cancellations network wide;
Freighters still operating; cargo only passenger flights available
Greatly reduced passenger network; offering cargo only flights
based on demand
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 8
AIRLINE MINDSET
• Airlines are in survival mode
• Passenger airlines concerned with the impact of
future passenger travel
• Without forward passenger demand, flight
schedules will remain reduced
• Passenger airlines look to find cargo revenue
opportunities via “passenger freighter” flights
• Airlines navigate travel restriction, quarantines and
pilot/crew safety
• Airlines operating freighters focused on maximizing
utilization, repositioning aircraft and charter options
Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only. 9
SOLUTIONS AVAILABLE
Service Offering *Reliability Cost Potential Potential Benefits Potential Risks & Challenges
Capacity
• Traffic rights timelines
• Dedicated aircraft capacity • Cost premium
Dedicated Customer • Control • Prepayment required
1 $$$$ Large
Chartered Aircraft • Speed • Signed customer charter agreement required
• Flexibility • Cargo must be ready when scheduled
• Limited cancellation options
• Blocked aircraft capacity purchased on
• Cost premium
Part Charter Medium to a flight specific basis
2 $$$ • Signed Customer Capacity Agreement required
Multi-Customer Large • Greater control
• Cargo must be ready when scheduled
• Highest loading priority
• Limited availability
Expeditors Premium
• Priority loading within Expeditors • For regular shippers only
Capacity (EPC) – where 3 $$$ Small to Medium
regularly contracted capacity • Restrictions on amount of capacity
available
• Subject to service inconsistency
• Limited availability
• Cost and capacity protection at or near • For regular shippers only
Managed Capacity Solutions 4 $$ Variable
current pricing • Restrictions on amount of capacity
• Subject to service inconsistency
• Delays
Standard Consolidated • Cost stability
5 $$ Variable • Lower priority
Airfreight
• Higher possibility to be impacted by backlogs
Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only. 10AIR - MIDDLE EAST & NORTH AFRICA
Qatar
CORE SERVICES
QR airline is scheduling cargo-only PAX flights to Oman and Kuwait.
United Arab Emirates
KLM airline reinstated 4 PAX freighters per week from Dubai as of Beginning of
April. EK, EY, TK and BA are offering cargo-only PAX flights as well.
EK airline has started operating cargo-only PAX flights to India, Pakistan,
Middle East and North Africa airports.
All operations have also shifted from DWC into DXB airport to focus on just 1
airport. Schedules are not affected.
Multiple Freighter flights are scheduled from below origins:
Australia: MEL KIX ICN
Africa: CAI KRT NBO EBB
Europe: CDG MAD BRU FRA MXP VIE LHR ZRH
I. Subcontinent: BOM DEL TRV COK MAA BLR HYD KHI LHE
Middle East: BAH KWI JED DMM MCT AMM BEY RUH BGW
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 11AIR - MIDDLE EAST & NORTH AFRICA
Kuwait
PAX flights in and out of Kuwait are still suspended until April 12. Freighters are
exempted. EK, TK and QR are operating cargo-only PAX flights into Kuwait.
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 12AIR - SOUTH AFRICA
South
C OAfrica
RE SERVICES
• No flights are departing from or arriving at Cape Town International Airport.
• All Ground Handlers at Cape Town International Airport are closed due to
the lockdown
• No flights are departing from or arriving at King Shaka International Airport
• No flights are departing from or arriving at Port Elizabeth International
Airport
Following airlines have announced schedule changes:
• SAA: Adhoc repatriation flights to Germany, UK, Italy
• Lufthansa airline – closed until further notice
• Singapore airlines – closed until further notice
• Egypt Air – Freighters also cancelled from the 27 March until further notice
• Qatar Airways: From 9 April, Belly Hold Cargo flights will resume daily
• Alitalia: Flights cancelled until further notice
• Cathay Pacific: Flights cancelled until 31 March until further notice.
• Cargolux: Africa Freighters cancelled effective 21 March until further notice
• Emirates: All flights cancelled from 25 March 2020 until further notice
• Delta Airlines: All flights canceled from 23 March 2020 until further notice
• Etihad: Adhoc flight will operate on 13 April 2020
• Virgin Atlantic: 3 Adhoc flights will be operating on 11, 12 and 13 April
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 13AIR – INDIAN SUBCONTINENT MARKET
India
• Air-Import segregation is delayed and there is a backlog post flight landing
+500 Tons backlog at DEL terminal.
• Backlog at BOM AND MAA is easing a bit
• Limited GHA staff is available at the Terminal leading to handling challenges
for Airlines at most of the Airports in India
• Air-Import clearance continues to remain slow as Factories / Plants are still
closed
R •E QR,
S ETK,
R VEYI Cand
E SEK are operating Freighters into/from India. Additional
Freighters capacity might come back slowly, mainly due to the backlog at key
Airports for Air-Imports
Bangladesh
• Bangladesh has completely shutdown Airport Operation from 26 th March
to 14th April
• Airlines required 3-4 days advance booking only on freighter to freighter
connectivity
• Airport and Air CFS operation are on standby mode
• Limited Ground Handling at Dhaka Airport
• Civil Aviation Authority of Bangladesh has extended ban on all domestic
flights and almost all International Flights till April 7
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 14Ocean Update Covid-19
OCEAN CARRIER BLANK SAILINGS POST LNY
Average Number Blank Sailings Core Carriers NOTABLES
Start of Covid-19 Start of Covid-19 Current – For the past 5 weeks
TEUS per week Per Week 9 Asia to NAWC -20% removed
Asia to USA = 417,905 Asia to USA = 121 Key Service Providers
Asia to NAEC -19% removed
Asia to Europe = 446,307 Asia to Europe = 53
Financial Concerns now Asia to NCMP -18% removed
more prevalent
Last 2 weeks Last 2 weeks Asia to MED – 24% removed
TEUS per week: Asia to USA = 17
Asia to USA = 367,466 Asia to EUR = 5
Asia to EUR = 421,638OCEAN – MENA MARKET
United Arab Emirates
Jebel Ali port and terminals are working with depleted staff . Unloading and
Trailer movements are happening with slight slow down during afternoon hrs.
Co-loaders Eculine and Shipco operating with limited staff and DO /BL release
are done with limited timing . Carriers are working 100 % remotely with limited
staff for DO and BL releases at counter imposing time restriction. Vessels are
operational but slower turn around with the rule of 14 days from last port of call
& health check processes. ASIA to ME inbound witnessing blank sailing received
by carriers.
Saudi Arabia
MAWANI (Saudi Port Authority) has released the a Memo stating that free
demurrage period has been extend 10 days demurrage free time at Jeddah,
Dammam, Riyadh dry port.
Effective 7 March, the Saudi Arabian government has extended the curfew for a
period of 24 hours per day. Logistics companies and brokers are considered
essential and exempted.
Lebanon
Terminals are operating from 7:30am -11:30 am
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 17OCEAN – MENA MARKET
Oman
Deliveries, Container gate in/Gate out are not affected. Expecting a complete
lock down in Muscat governorate this week as a part of slow the spread of
Covid 19 .
Kuwait
Country lockdown has been extended till Apr 26th.
Terminal operations are slow, priority for medical equipment.
Bahrain
Carriers are working 100 % remotely with limited 2 -3 staff for DO and BL
releases at counter -also they are restricting the timing . Vessels are operational
but slower turn around Also there are blank sailings announced. Asia to Middle
East are also seeing some blank sailings being announced on the Inbound
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 18OCEAN – SOUTH AFRICA MARKET
South Africa
Update from Shipping Lines during 21 day shut down :
• Mediterranean Shipping Company (MSC) advised that all unassigned
containers will be moved to Overstay Depot immediately on discharge
• Cosco Shipping Lines SA has granted additional demurrage days in order to
mitigate losses
• Transnet Port Terminals (TPT) – trucks may only be dispatched to the Port
after the booking for pick up has been made. Trucks that arrive at the staging
area waiting for appointments will be turned away
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 19OCEAN – INDIAN SUBCONTINENT MARKET
India
• All Port Operational and but Productivity still low due to shortage of drivers .
Major Ports in India – Nhava Sheva – JNP , NSICT , GTI , Mundra and Chennai
are showing increase in inventory inside the port due to slow movement of
containers to the CFS and also due to the fact that most customers unable to
take deliveries . This could lead to a potential congestion situation at these
ports . Currently the port in yard position at port is manageable.
• CFS are operational with limited staff but export cargo movement is currently
low as Exporters still not resumed operations fully . Import Containers lying
at CFS continue to pose a congestion situation for all CFS .
• Transportation services have opened have slowly for intercity . LCL and FCL
pickups are being executed with limited Service Providers . Interstate
movements are still an issue . Shortage of drivers and truckers prevail . But
we are able to execute few shipments in each geography basis proper
planning.
• Blank Sailing Schedules are increasing across all trades to and fro India to
manage the demand & Supply imbalance . This warrants for a good planning
and forecasting with customers so as to book space proactively .
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 20OCEAN – INDIAN SUBCONTINENT MARKET
Pakistan
• Pakistan in complete lockdown situation extended until 15th April . All Ports
operations are extremely slow but moving .
• Trucking is happening but only as necessary .
• CFS are operational with limited staffing and cargo movement is still low
• Blank Sailings are in play for Pakistan as well .
Bangladesh
• All Ports functional but productivity is low and in yard inventory situation is
increasing
• CFS operation is going on with limited labors and staff. Movement of cargo is
limited as exporters have still not resumed fully
• Truckers container movements and domestic pickup is functional
• Sailing are currently not a challenge for Bangladesh as yet but we do see
blanks sailings coming up for this region as well due to low demand .
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 21Transcon Update Covid-19
TRANSCON – MIDDLE EAST
United Arab Emirates
Ministry suspended night permits in Dubai. Domestic deliveries will not
be operational from 08:00 PM to 6:00 AM.
Vehicle movements in Abu Dhabi require an online permit from the
Ministry to be operational from 8:00 PM to 6:00 AM.
Kingdom of Saudi Arabia
Truck availability has decreased due to lower operating hours across the
market. This limits same day/fail-proof delivery commitments to a 10 KM
radius from loading site to be combined with an early loading window.
Additionally, POD hard copy and Invoice submission are subject to
suspensions for a limited period of time to reduce virus transmission
risks.
Bahrain
Border is closed. Food and Pharmaceutical commodities are exempted.
Oman
Open with conditions. Hatta border on UAE's side is not accepting trucks
that are registered in Oman for final deliveries. They are only accepting
cargo on trucks registered in the UAE. Service providers have to secure
authorizations during the 24 hour lockdown that was announced on April
4. © 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 23TRANSCON – MIDDLE EAST
Oman
Open with the same restrictions as Wajajah.Only difference is Khatmat
Shakla on UAE's side is strictly accepting transit cargo for trucks registered
in Oman.
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 24TRANSCON – INDIAN SUBCONTINENT
India
• Started Inter-city by Air for all
metros
(BOM/BLR/MAA/HYD/DEL) exc
ept CCU&AMD. Again these are
restricted to Pharma / Medical
supplies & Essentials for now.
Also it depends on freighter
schedules which vary from day
to day
• Barring AMD, movement
of essential goods have started
almost seamlessly for INTRA
CITY. The requirement of
passes vary from state to state,
reach out to your District
administration for further
updates
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14, 25Customs Update Covid-19
CUSTOMS – MIDDLE EAST
United Arab Emirates:
Export documents for Egypt and Jordan cannot be legalized due to MOFA and
embassy closures. This is causing disruptions to the usual process. Some goods
are being held in UAE unless exemptions from the respective destinations are
given on a case by case basis.
Bahrain:
Customs offices are operating on skeleton staff which is causing delays. Online
Payments for Duty and VAT have been initiated for safety reasons.
Qatar
Government has exempted food and medical equipment imports from customs
duties for 6 months to combat the coronavirus pandemic. Timeline came into
effect on March 23.
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14,CUSTOMS – MIDDLE EAST
Kingdom of Saudi Arabia:
As of April 8, incoming Trucks will be held at the customs yard until one of the 2
options is conducted. Both options require an official letter from the driver or
importer guaranteeing adherence to the process to be conducted with 24 hours
of the issuance date.
1)Truck driver will switch places with a local(Saudi or foreigner with valid
iqama).Initial driver will have to exit through Nebras system on foot.
2)Truck heads will be switched with a local one for final delivery. Swap will re-
occur before exiting the country.
This memo excludes food and medical supplies which can still be imported as per
usual process.
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14,CUSTOMS – SOUTH AFRICA
South Africa
• The Customs Authority has advised that taxpayers, Brokers, etc. that they
should use the electronic platforms available to make payments, and visits to
the Customs Authority branches should be in exceptional circumstances only
• Customs encourages customers not to visit the branches but to use the digital
channels
• Customs will not accept manual supporting documents. Digital channels or
drop box at the branches must be utilized
• The Durban Chamber will be closed during the prescribed period(due to
COVID19 – 21 day shutdown), with limited services available. For support with
Certificates of Origin (online services only), please email Bharriey Pillay at
pillayb@durbanchamber.co.za
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14,CUSTOMS – INDIAN SUBCONTINENT
India
• FSSAI( food related agency) has declared that their services are essential.
• Some Software Technology Park/Special Economic Zone authorities have
issued guidelines for work without physical presence
• CBIC has issued instructions to allow an undertaking to be given till 30 April in
place of a notarized bond wherever such document is required for clearance.
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14,CUSTOMS CARGO CLEARANCE IMPACT
• Border restrictions for “non essential”
travel, which may cause impacts to
movement of goods
• Restrictions/ prohibitions on the
export of medical commodities and
Personal Protection Equipment
• Ease in requirements related to the
import of medical commodities and
Personal Protection Equipment
• Exclusions for additional duties on
emergency goods
• Priority given by Customs to clearance
of medical and food related
commodities
• Execution of Customs’ contingency
plans which include reductions or
reallocation of staff as well as
adjustment of hours of operation
Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only. 31DISTRIBUTION
Branch Status Branch Status
Dubai (DXB) Johannesburg (JNB)
Cairo (CAI) Durban (DUR)
Karachi (KHI) Cape town (CPT)
Lahore (LHE) Mumbai (BOM)
Riyadh (RUH) Chennai (MAA)
Jeddah (JED) New Delhi (DEL)
Dammam (DMM) Bangalore (BLR)
Hyderabad (HYD)
Kuwait (KWI)
Ahmedabad (AMD)
Doha (DOH)
Abu Dhabi (AUH)
Beirut (BEY)
Amman (AMM)
Operational
Limited Staff
Closed/Critical Products
© 2020 Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
April 14,INFORMATIONAL RESOURCES AVAILABLE
SUBSCRIBE TODAY
Newsflash
https://info.expeditors.com/newsflash
Operational Impact
https://info.expeditors.com/operational-impact
Horizon Blog
https://info.expeditors.com/Horizon
Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only. 33You can also read
