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Global Market Update – April 17, 2020

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Europe

DSV is operational everywhere, although in Italy with interruptions.

Demand is increasing more than air charter capacity from Asia to Europe and thus prices, especially from Shanghai, are increasing.

Germany has extended restrictions and regulations until May 3.

North America

Air charter space from Asia to North America is extremely tight with rates at an all-time high.

Vessel capacity shortages from the Americas to Asia is expected to last until the middle of May.

Latin America

Ports are operating normally. There is a shortage in transport units and freight rates are increasing.

Peru: ports and airports will remain without movement. DSV offices in Peru are officially closed until new advice. Only pharmaceuticals are allowed to move.

Africa and Middle East

In South Africa, the government has published a list of essential services. For 21 days from 26 March, we are not permitted to move freight which does not fall into these categories. South African airports are operating at reduced capacity. We expect more measures to be in place soon, which will likely cause disruptions.

Middle East: Some restrictions at border crossings, e.g. Jordan - Saudi Arabia, but alternative routes are being used.

Asia Pacific

Australia and New Zealand: Ocean ports where ships must be in transit for at least 14 days before being allowed to enter port. Airfreight is limited with disruptions.

Backlogs at intra-Asian borders are improving slowly. Delays are reducing.

China has imposed new export restrictions for COVID-19 medical products.

The new export requirements are two-fold, a declaration and evidence that the medical product is already registered in China, and that it also meets the quality standard requirements of the importing country.

This is causing delays of export cargo from China for Personal Protective Equipment (PPEs) which is not certified and needs to be confirmed by the authorities, which can take 9-10 days.

Chinese Customs has so far seized 11,205,000 COVID-19 prevention/detection medical products from various channels, including commercial, mail, express, and cross-border e-commerce platforms. The bulk of these medical products (almost 10 million items) were surgical face masks and the seized goods were either produced by companies not on the NMPA-approved list or did not possess a medical device registration certificate.

Customs also highlighted that some companies have been attempting to disguise the medical products with other products or to declaring these products as “non-medical”.

Indian Subcontinent

India: Lockdown has been extended until May 3.

Pakistan: Lock-down Sindh till 30th April and Punjab until April 25.

Bangladesh: General holiday has been extended until April 25.

Sri Lanka: Curfew imposed until further notice.

Customs process is slow and ocean terminals are heavily disrupted.

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