Early booking in the face of coronavirus related delays

The number of coronavirus cases continues to climb and the Chinese government imposed new border restrictions and regulations on businesses, that must be implemented prior to re-opening February 10th. Hong Kong & Shanghai along with other South China cities have closed or restricted travel from bordering cities in an attempt to contain the transmission. The mandatory regulations include protective guidelines of personnel temperature verification, face masks, disinfecting the workplace among a list of other requirements, along with a 14 day quarantine for employees who travelled to various Chinese cities during the CNY holiday. The quarantine does not affect employees who remained in their respective cities unless they display symptoms of infection.

A large number of employees travel from major cities to visit family and friends, returning to work after the holiday. This imposed restriction will have a significant effect on the businesses workforce and their productivity. It is estimated that in certain areas, up to 50% of the staff could be delayed from returning to work.

It is estimated that the under current conditions, a minimum 2 week delay is expected in both air and ocean shipping. Once factories resume, a cargo surge is expected and demand will peak. This combined with the reduced air and ocean schedules will inevitably create congestion. We strongly advise a proactive approach be taken and the following information be acquired for all upcoming shipments:

Review all In-DC, manufacturing and cargo delivery deadlines
Verify supplier’s expected employee return rate with expected cargo Ex-factory date (expected shipment ready date delay)
Plan for mode of transport change in relation to the anticipated delays
Build into your planning delays for congestion at sea ports, airports, China customs clearance. (This information will be advised in our bulletins as they become available)

Therefore, OEC urges all our import clients to advise us as early as possible of upcoming shipments both by air and ocean. As mentioned in our past bulletins, both air and ocean carriers have suspended departures reducing capacity substantially, especially amongst airlines. With advance information, we can better advise alternatives for your cargo requirements and assist in meeting your delivery dates.

Contact your OEC representative as soon as possible with your upcoming shipment information and they will contact our overseas offices along with your suppliers and guide you through the available options to expedite your cargo.