The latest announcements last night and today from the Federal and various State and Territory Governments have put in place further restrictions on gathering and movement. There is an expectation that a third wave of even tighter restrictions is imminent.
While people are using the word ‘lockdown’ and preparing for restrictions similar to those in other parts of the world we know that not everything can stop and essential services will be required to operate for the community to access food, petrol, pharmacies, medical facilities, etc.
Therefore ports and airports will continue to operate, and the associated logistics chain will be required to support the clearance and movement of freight, so supplies are maintained. It is our expectation that the critical role forwarders and customs brokers play in this chain will also be maintained.
With this and the need to minimise the COVID-19 risk to our staff and the wider community, Magellan Logistics has implemented a Work from Home Policy for all staff for the foreseeable future.
In the course of the last few weeks, we have implemented a collaboration hub as part of our normal operations and trained all staff to enable them to work remotely. They will also be furnished with all the equipment they need to do this.
All your usual Magellan contacts will be available to you via email and able to respond to your needs as normal. Our landline numbers will be diverted to staff’s mobile phones and to make sure you can get in touch with the people you need during this period you are also welcome to contact them on their mobiles.
CHINA FREIGHT INDUSTRY UPDATE
- The situation in China is improving with new confirmed cases being mostly overseas travellers. There have been some non-symptom infection cases identified as well as some who had been cleared only to be re-tested as positive. However, the number of these types of patients is low
- According to the Chinese Government checkpoints on roads have been reduced so most motorways/Highways are back to normal operation now. However, Hubei province still subject to regional restrictions
- All provinces are moving towards normal production levels, including Hubei province. Travellers from Hubei are still required to quarantine 14 days, before going back to the office or factory. The Government is planning to totally unlock Hubei province around April 8.
- Most provinces have announced they expect business and lifestyle back to normal in 2-3 weeks.
- Currently, the average of the productivity in China is back to above 70%, however that calculation includes Hubei province so, in fact, the average in other provinces is much higher
- According to the Chinese Government, all the Chinese ports will not implement 14 days quarantine period for shipping vessels unless special concerns are raised.
TRADE LANE UPDATES
- Many European ports continue to experience blank sailings and the dynamic nature of the situation at various land borders is increasingly impacting on sea logistics businesses
- The lack of sailings from Asia has created an equipment imbalance, with high demand for exports from Europe not being able to access empty containers
- Ports are operational albeit slightly slower than normal and cargo operators can work. As the situation develops in each country we will likely see, as we have in Australia, a range of new regulations and restrictions
Various countries are instigating differing levels of restrictions. In the Philippines, Luzon (Manila), Visayas (Cebu) and Mindanao (Davao) had been placed under a state of “enhanced community quarantine”. Obviously, this will impact operations due to the restricted movement.
In Malaysia and India lockdowns have been announced and all non-essential manufacturing, government and private business premises in these countries are not operating. Essential services, as is the case in most countries, such as ports and logistics companies, continue to operate.
New Zealand has announced a move to “level 4” lockdown for 4 weeks as of today.
Italy has now enforced a lockdown from today through to April 3 to contain the virus’ spread
Ports and businesses involved in the food industry and transport (logistics) for essential services will not be impacted. All other factories have been instructed to complete all orders/shipments before March 25 and then lockdown.
AIR FREIGHT INDUSTRY UPDATE
Global airfreight capacity has been severely reduced by the grounding of a large portion of the passenger fleet. Charter aircraft and dedicated freighters continue to be available; these alone do not provide sufficient space to move the required volumes.
Many larger businesses have managed to secure arrangements for charters or the use of passenger aircraft as cargo flights many SMEs do not have the volume to justify such an outlay.
Please contact your Magellan representative on 1300 651 888 to discuss options for your airfreight.
Source: Freight & Trade Alliance https://www.ftalliance.com.au/