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Global Market Update – April 24, 2020

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China

Current Critical Space Situation for Cargo Exported from China
Offices and warehouses will be closed during the China Labor Holiday from May 1 to May 5. The highest air cargo peak is hitting now, before the national holiday week.

The current market remains very critical. We expect thousands of tons of cargo to pour into terminals next week before the public holiday.

The orders on medical-related cargo continue to increase. Due to China Customs Restrictions, some of the medical products such as masks and goggles cannot be moved via HKG if the cargo is located in China.

Rates for exporting from China have hit an all-time high.

372 charters were handled on April 21st (the highest record ever).

We recommend alternative SEA-AIR solutions via Korea, Taiwan, Singapore, or Dubai for shipments in the coming weeks.

China Imposes 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.

China Customs had so far seized 11,205,000 COVID-19 prevention/detection medical products from various channels, including commercial, mailing, 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”.


Europe

We are operational everywhere, although in Italy with interruptions.

Demand is increasing more than air charter capacity from Asia to Europe.

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 are expected to last until the middle of May.


Latin America

Airlines are obeying the authorities' restrictions. Ports are operating normally. There is a shortage in transport units and freight rates are increasing.

Peru: ports and airports will remain without movement until April 26. DSV offices in Peru are officially closed until new advice from authorities. 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, starting March 26, we are not permitted to move freight which does not fall into these categories. South African airports are operating at reduced capacity. Only medical supplies are moved via airfreight.

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


Asia Pacific

Australia and New Zealand: At ocean ports, 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.


Indian Sub-Continent

The lockdown in India has been extended until May 3. Current schedule of freighters: DEL, MUM and MAA.

Pakistan: Lockdown in Sindh until April 30 and Punjab until April 25.

Bangladesh: General holiday has been extended until April 25.

Sri Lanka: Curfew imposed until April 26.

Customs process is slow and ocean terminals are heavily disrupted.

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