“The trick is to establish robust supply networks”
What are the lessons of the current crisis? Bernhard Simon, CEO of DACHSER, on the future of global goods flows.
Offering new prospects and a future
Logistics provider DACHSER has joined forces with children’s aid organization terre des hommes to work on projects in Brazil as well. There, the focus is on a subproject called “Children’s rights create the future,” which has been running successfully since 2015 at the CEDECA children’s rights center in Limeira, a troubled city in the federal state of São Paulo close to the metropolitan region of Campinas, which is home to millions of people.
DACHSER builds on its growth driver
Even as the global economy becomes increasingly weaker, DACHSER was able to continue growing in 2019. The logistics provider increased its consolidated net revenue by a solid 1.6 percent to EUR 5.66 billion. Driving this growth was again the Road Logistics business field, net revenue rose by 2.9 percent to EUR 4.60 billion. In contrast, the Air & Sea Logistics business field saw a decline of 4.1 percent, mainly attributable to weaker demand for air freight services for automotive customers.
DACHSER European Logistics – your reliable partner in good times and bad
We are pleased to be able to advise that, despite the huge challenges caused by COVID-19 crisis, DACHSER's European Logistics network continues to operate with its customary high reliability in order to fulfil your vital business requirements.
DACHSER, your family-owned business partner, has been doing its utmost to maintain its commitments given to you with regard to services and rates.
We have taken extensive measures to ensure the continuous supply of goods throughout Europe, and are fully aware of the huge responsibility we have for your business and for society in general. We are facing severe challenges and incurring additional costs as are all organisations within in our industry. Being well aware that nearly all industries and customers of DACHSER are facing a similar situation, we wanted to give you a strong signal that DACHSER remains in partnership with you:
DACHSER stands for stability and reliability in difficult times as well. Therefore, we will not be introducing a general “COVID-19 surcharge”. Instead, we wish to renew our commitment to you that we will be standing by our agreed tariffs and maintaining our rates for domestic and international groupage shipments for the time being.
We would like to cooperate even closer with you in order to develop solutions for the current and forthcoming challenges. In addition, we trust we can count on your flexibility in adapting lead times or service levels where necessary and your reliability by respecting the agreed payment terms based on our mutual trust and cooperation.
Let us stand side by side in these challenging times!
Current loading restrictions in Europe due to Covid-19
In the following you will find the current loading restrictions that apply to Europe (see download). Food transports are excluded from this. This document here will be updated on a regular basis.
With the free map of the software provider Sixfold, transport companies and truck drivers can view the current waiting times at European borders and make appropriate preparations if necessary: https://covid-19.sixfold.com/
COVID-19 pandemic: Impact on operational processing in India
In order to contain the spread of Covid-19 virus, Government of India and authorities have enforced a three week ban with effect from midnight of 24 March 2020, which prevents all entries from Europe into, in addition to the already existing entry ban for visitors from several Asian countries. All offices and non-essential services will remain closed during this period.All DACHSER offices will remain close down during this period, until any further notice.
This will create a delivery restrictions in each product category:
- LH has cancelled their freighters to/ from BOM due to no staff to handle the same at the airport. Staff are unable to reach work due to lock down and curfew
- Other freighter operators like QR, EK, TK, CX etc. may soon follow suit, please check at your end for any import dispatches into India
- Flights within India will also be stopped Mar 25 onwards until Mar 31
- There is a shortage of truck drivers and due to the curfew all transport is at a standstill
- At Nhava Sheva port, except very limited import shipment which are essential supplies such as medication, no vehicles are being allowed in or out, so basically no import and export container movements taking place since this March 24
- CFS labour did not report to work, goods vehicles could not move freely as such all activities - stuffing & de-stuffing at CFS' is at a standstill
- Empty container depots are not working and combined with lack of trucks, no export pickups are possible.
- The above may turn out to be the case in all other ports and ICDs in India in the next couple of days
- Various associations have represented to the government to make sure the working of the CFS is not hampered as supplies like pharma and food stuff need to be imported for the country
- All the vessels with the last port of call from China, Italy, Iran, Republic of Korea, France, Spain, Germany, UAE, Qatar, Oman and Kuwait to be quarantined for a period of 14 days from last port of call before they can be accepted at Kolkata Port Trust (KoPT)
- While documents can be filed online, any cargo requiring physical check before import or export is not possible due to travel restrictions and lack of both customs and brokerage staff.
- All transportation services (air, road and rail) remains suspended across India, hence we are unable to provide any local transportation or CHA services until further notice
We understand that this may lead to an inconvenience till the time the situation eases, but to maintain the larger interest of the nation, we would like to save everyone from potential risks & hence request your kind understanding on the same.
However, Our teams will be working from home and will be available during the office working hours and tackle all emails, calls and escalations promptly.
Please rest assured that we will keep you updated of any changes to the current situation. Should you have any concerns and/or queries, please feel free to contact your local DACHSER representative.
Thank you as always for your continued support. Hoping you, your families, and loved ones stay safe. Further details will be provided as the situation develops.
Coronavirus pandemic: Impact on operational processing in the USA
As can already be seen from various press releases, the US authorities have enforced a ban with effect from 13 March 2020, 23:59 h, which prevents all entries from Europe into the United States, in addition to the already existing entry ban for visitors from several Asian countries.
This leads to a large number of flight cancellations on routes between Europe and the United States. However, the affected passenger routes also represent a significant portion of the available cargo capacity and therefore there is a massive impact on available cargo space and freight rates.
Our team of experts continues to work hard on alternative options and routes that will allow us to carry urgent cargo and we are committed to providing our customers with priority access to available capacity. As with the successful implementation of our charter program between China and Germany, we are now exploring similar solutions for transportation between Germany and the USA.
Our teams around the world will stay in touch with you, but please do not hesitate to get in touch with your contact at the respective DACHSER branch to discuss your particular situation and make further arrangements for your freight shipments.
DACHSER is expanding premium charter flight rotation
DACHSER Air & Sea Logistics is starting the next wave of its charter flight rotation service to China and back. The charter route has initially been scheduled to operate from mid-March to the end of the month. From 21 March, DACHSER USA will also be adding a new route between Chicago and Frankfurt to its existing charter service.
Statement on the current situation in regard to the spread of the COVID-19 virus
With this announcement, DACHSER is providing information on action to be taken to prevent the spread of the COVID-19 virus (also known as the coronavirus) within the DACHSER organization and in regard to the current status of operational activities as well as any possible impacts on our customers’ shipments.
In view of the current situation, specific guidelines for conduct and precautions have been rolled out within the global DACHSER organization. The actions to be taken include the establishment of a central reporting management system, regular assessment of the situation, and definition of additional action according to the situation. The relevant activities were also expanded and intensified on the basis of the existing hygiene management in the various areas (human resources, operational, and process hygiene).
In addition to these actions taken internally, DACHSER is complying with all current official regulations and taking appropriate precautions. In the event of restrictions applicable to individual locations, action plans are ready to be implemented in order to ensure that our network can continue to operate.
To enable a smooth process, we depend on being able to work together with all parties involved in the supply chains, including cooperation with truck drivers so that they will also be able to comply with increased hygiene regulations. We also fully integrated the drivers into our hygiene management and provided hand disinfectants at all locations.
We are doing everything possible to maintain our customers’ supply chains and prevent delays in shipments. If supply chains are to be affected in any way by checks, controls, flight cancellations, or the like, we will work to find alternative ways to ship the goods. We would also like to point out that the delivery times for consignments could be extended. However, the measures we have taken so far make us feel well equipped to deal with the current situation.To make this possible, it is essential that we maintain close coordination with our customers.
If you have any questions about your freight, please get in touch with your local point of contact at the respective branch of DACHSER.
Coronavirus: updates on DACHSER’s operations in China
The Novel Coronavirus Pneumonia recently spread rapidly in China and many cities and provinces have confirmed cases. In order to keep the epidemic under control, the Central Government has announced the extension of the Lunar New Year holiday to February 2. Local authorities, however, have requested enterprises in that region to not have their employees return to the office until a specific later date, mostly on February 10.
Most of the DACHSER branches will officially re-open on February 10. Starting from Monday next week, February 3, depending on cities and permissions from local authorities, skeleton staff will be arranged to enter the office building to manage critical shipments and minimize impact like detention, demurrage fee, TLX release and etc. We regret that we could not provide full operations but will try out best to maintain basic services.
The date for re-opening is changing on a daily basis and is subject to change depending on the situation. As of today, January 31, 2020, the re-opening date of each branch is as follows:
- Beijing: Feb-03
- Chengdu: Feb-03
- Dalian: Feb-10
- Dongguan: Feb-10
- Guangzhou: Feb-10
- Nanjing: Feb-10
- Ningbo: Feb-10
- Qingdao: Feb-10
- Shanghai: Feb-10
- Shenzhen: Feb-10
- Suzhou: Feb-10
- Tianjin: Feb-03
- Wuhan: Feb-14
- Xiamen: Feb-10
- Zhongshan: Feb-10
Operations in Wuhan
DACHSER’s staff from Wuhan branch will work from home and part of the operations will be handled via our Shanghai team. Hubei Province Authorities announced that customers will need to apply transportation certificate from the local government and hand in the certificate to logistics company if they wish to have shipment to enter or exit the province by trucks.
General business in China
While we are trying our best to keep the operation as smooth as possible, please note that most of the factories in China are still closed; trucking services, flights and terminals are operating at minimum service level. Delays and other operational issues are to be expected.
We will continue to update you via our website with the latest information on how this is impacting your supply chain. Should you have any concerns and/or queries, please feel free to contact your local DACHSER representative.