NOVEL CORONAVIRUS UPDATE - Date : March 9th, 2020 - Yusen Logistics
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NOVEL CORONAVIRUS UPDATE Date : March 9th, 2020
H i g h l i g h t s – M a r 9 th
China – policy support on export trade
▪ China General Administration of Customs (GAC) announced on Saturday that the nation's foreign trade volume
totaled 4.12 trillion yuan ($592 billion) in the first two months of this year, falling 9.6 percent year-on-year,
mainly affected by the epidemic and the extended Spring Festival holiday;
▪ Over 90 percent of major industrial companies in Jiangsu, Shandong, Fujian, Liaoning, Guangdong, Jiangxi and
Hunan provinces had resumed production, and the ratio exceeded 95 percent in five provinces, including
Zhejiang and Guangdong;
▪ China has also rolled out policies to stabilize foreign trade. The country will continue to lower the tariffs of
consumer goods, specific advanced equipment, key components and raw materials. It will also further cut trade
costs based on the Trade Facilitation Agreement outlined by the World Trade Organization, the Ministry of
Commerce said.
Source : http://www.chinadaily.com.cn/a/202003/09/WS5e6544bda31012821727d420.html
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 2H i g h l i g h t s – M a r 9 th
Italy – Announces lockdown
▪ On Sun (Mar 8th), Italian Prime Minister Giuseppe Conte signed a decree that will put millions of people across
northern Italy under lockdown due to the novel coronavirus. The sweeping move puts the entire Lombardy
region, as well as 14 other provinces, under travel restrictions, and is one of the toughest responses
implemented outside of mainland China to get the Covid-19 epidemic under control;
▪ While the lockdown only applies to northern Italy, other measures will be applied to the entire country. These
include the suspension of schools, university classes, theaters and cinemas, as well as bars, nightclubs, and
sports events. Religious ceremonies, including funerals, will also be suspended.
Source : https://edition.cnn.com/2020/03/08/asia/coronavirus-covid-19-update-intl-hnk/index.html
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 3Restrictions from Vessels from China
US
▪ Non-passenger vessels are allowed to operate in the US with restrictions if they have been to China or
embarked passengers in China within the last 14 days under the condition that there are no sick
crewmembers. Any vessels with sick crewmembers are required to notify the nearest Coast Guard Captain
of the Port.
Australia
▪ Any vessels that have left China or transited through the country after 01 February and less than 14 days
prior to the date will be required to meet coronavirus requirements set by the government.
Vietnam
▪ All crews on those vessels not ever called Chinese ports, but have Chinese Nationality & signed on board
around 14 days are also not allowed to go onshore when calling ports.
Singapore
▪ Maritime and Port Authority of Singapore (MPA) has implemented temperature screening at all sea
checkpoints. Visitors having a travel history in Hubei or possessing PRC passports issued in Hubei, will not
be allowed to enter or transit through Singapore.
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 4Restrictions from Vessels from China
Indonesia
▪ Vessels that have visited China during their last 10 port stops will be thoroughly inspected by the Port Health
Authority. Anyone suspected of being infected with the virus must be treated by authorities.
Turkey
▪ Cargo ships have been permitted to dock although they will undergo strict inspections.
Philippines
▪ The Philippine Ports Authority said workers in ships coming from China are prohibited from disembarking to
prevent the spread of the virus.
South Korea
• Any vessel that visited China within the last 14 days will be inspected by officials from the Korea Centres for
Disease Control and Prevention agency before entering. The vessels can only enter South Korean ports if the
inspectors find no sign of infection and give them the all-clear.
Kenya
• There will be an increase of vessels’ docking time at the port, as Kenya Ports Authority (KPA) screen all crew
members for the virus and inspect all vessels entering their ports.
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 5Restrictions from Vessels from South - Korea
Kuwait
▪ Completely reject cargo vessels from South Korea
Vietnam
▪ Country’s capital Hai Phong City - the entire vessel will be checked by staff from Hai Phong International
Health Quarantine Center, with all crew members to remain on board.
Russia
▪ Black Sea ports of Novorossiisk and Yuzhnaya Ozereyevka : mandatory disinfection of ships arriving from
Iran, Italy and South Korea because of the coronavirus.
09 March 2020 6Yusen Logistics Operation
Yusen China offices
From Mar 9th , below are the percentage of staff work-at-office and work-from-home
% of staff
Origins Work at office Work from home
Shanghai 67% 33%
Ningbo 96% 4%
Qingdao 48% 52%
Nanjing 33% 67%
Tianjin 20% 80%
Dalian 50% 50%
Fuzhou 58% 42%
Xiamen 100% 0%
Wuhan 0% 100%
Shenzhen 35% 65%
Yusen Italy and South Korea
Normal in operation and no impact on SCS shipments
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 7Yusen Logistics Operation:CFS,Trucking,Carriers
Origin Customs Warehouse Truck Carrier Terminal
1/. Normal in operation
Trucking service is still limited in supply,
Dalian Normal operation Normal operation 2/. Majority of staff are worked from Terminal as normal
but gradually resume to normal.
home
1/. Normal in operation
Trucking service is still limited in supply,
Fuzhou Normal operation Normal operation 2/. Majority of staff are worked from Terminals as normal
but gradually resume to normal.
home
1/. Normal in operation
Trucking service is still limited in supply,
Nanjing Normal operation Normal operation 2/. Majority of staff are worked from Terminals as normal
but gradually resume to normal.
home
Trucks from all cities of China are allowed for
entry, only if drivers can pass the health check
Trucks from all over China are accepted, 1/. HPL/COSCO all resumed work at
and stay in their vehicles.
on the condition that the drivers can pass office since Mar 2nd;
Ningbo Normal operation 1. Ningbo National Logistics – Mon to Sun 08:30 Terminals as normal
the health check and stay in the vehicle 2/. Others are having both work-from-
until 20:00
during the entire operation process. home and work-at-office.
2. Ningbo Port Southeast Logistics – Mon to Sun
08:00 until 2:00
1/. CMA/ONE will implement home
Trucking service is still limited in supply, office mainly plus office on duty;
Qingdao Normal operation Normal operation Terminals as normal
but gradually resume to normal. 2/. Others carriers are home-office in
majority.
1/. EED (WGQ) operates as 24 hours a day. No
limitation imposed on truck drivers as long as
they can pass the temperature checks.
2/. DFJF (Linggang) are resumed to normal
1/. Normal in operation Terminals congested owing to
operation. Except from Hubei province, trucks Trucking service is still limited in supply,
Shanghai Normal operation 2/. Majority of staff are worked from upsurge of import and reefer
from all over China are accepted, drivers are but gradually resume to normal.
home containers
subject to health checked and limited in assigned
operation area.
3/. Medlog : operating time Mon to Sat 8:30-
17:00
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 8Yusen Logistics Operation:CFS,Trucking,Carriers
Origin Customs Warehouse Truck Carrier Terminal
1/. Normal in operation
Warehouse operation is normal, 1 day Trucking service is still limited in supply,
Tianjin Normal operation 2/. Majority of staff are worked from Terminals as normal
reservation in advance is needed. but gradually resume to normal.
home
Normal operation but in low Resume to work NO earlier than Mar 10th Resume to work NO earlier than Mar 10th Most of the main carriers are resumed
Wuhan On duty staff arranged
efficiency 24:00 24:00 in form of work-from-home
1/. Normal in operation
Trucking service is still limited in supply, Terminal congested due to too
Xiamen Normal operation Normal operation 2/. Majority of staff are worked from
but gradually resume to normal. many empty containers
home
1/. Normal in operation
Trucking service is still limited in supply,
Shenzhen Normal operation Normal operation 2/. Majority of staff are worked from Terminals as normal
but gradually resume to normal.
home
Italy TBA TBA TBA TBA TBA
South Korea Normal operation Normal operation Normal operation Normal in operation Terminals as normal
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 9Market Update Airfreight
Sea-Air mode
▪ A solutions could help shippers to avoid airfreight shortages and price spikes as production lines in China soon get
back underway.
▪ Ocean transport to move the goods to a transshipment point, before flying to destination, could prove attractive
for semi-urgent shipments that want to avoid any airfreight price surges or space shortages, but can’t afford to
wait for long before arrival to the consumption markets .
▪ Singapore is around 10 days quicker than the traditional air-sea hub of Dubai, adding value and speed.
Source : https://www.aircargonews.net/airlines/sea-air-solutions-set-to-help-alleviate-coronavirus-capacity-crunch/
Shortage of capacity
▪ About 70 airlines have canceled all international flights to mainland China, and an additional 50 have curtailed
operations, resulting in an 80% reduction in foreign airline capacity and a 40% reduction by Chinese airlines.
▪ American Airlines, and United Airlines suspended service to China and Hong Kong until late April, while Air
Canada, British Airways and Finnair extended flight suspensions to mainland China until late March and cut more
flights to Hong Kong.
09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 10Potential Impact To be Considered
Production Space and Equipment
▪ Late opening of factories may result to manufacturing and ▪ Slow booking release or response from carrier as work from
delivery delays. home or booking agent team not in full force.
▪ Parts and material packaging availability severely impacted ▪ Port congestion.
within the lockdown cities. Not all establishments and
authorities are officially open. ▪ Container rollovers and possible delay.
▪ Workers shortage as returning workers may be restricted and ▪ Tight vessel space and equipment availability could be
subject to 14 days quarantine. Public transportation is also expected once production resumes normal as cargo readiness
limited. are all at the same time.
▪ Limited air cargo space due to suspended flights.
Transportation
▪ Intercity transportation might be limited due to entry and exit ▪ More blanked sailings and increased freight rates
measures implemented by various cities
▪ Inland transit time could be longer due to road blocks and
checkpoints.
▪ Possible drivers shortage and truck supply.
▪ In some provinces, barge and feeder operation has been
suspended. Trucking service is very difficult to arrange and
therefore significant price increase is expected.
Copyright © 2020 Yusen Logistics. All rights reserved 11Disclaimer : Yusen Logistics does not control nor guarantee the accuracy, relevance, or completeness of the information found herein. Any hyperlinks from this circular, exists for information purposes only and are meant for your convenience. 09 March 2020 Copyright © 2020 Yusen Logistics. All rights reserved 12
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