Global Logistics Update: COVID-19

As we wrap up another week with most countries under various lockdown restrictions due to COVID-19, we seem to have reached a holding pattern as we wait on either announcements for extensions or reemergence.

In the US, COVID-19 cases continue to rise, but transportation continues to flow and port and trucking facilities are still fully operational, with most exercising safe social distancing practices and some with limited hours and employees.

South Africa: As we reported this morning, the South African government has abruptly banned the transport of alcohol including wine exports once again, beginning April 16^th and lasting the duration of their lockdown period (currently scheduled for May 1^st). Wine industry leaders are lobbying for the removal of this ban as the wine industry accounts for a large portion of South Africa's revenue. We are monitoring this situation closely and will provide updates as soon as we receive them.

Mexico: The national lockdown period has been extended until May 31^st. Tequila and Mezcal production and transportation continue to operate fully since the government considered them to be part of the "Agroindustry." And despite current mandates that beer production is not considered an "essential" service, the large beer producers in Mexico have continued to operate and transport their products without pushback.

Australia/NZ: The Oceania region continues to operate fully on an ocean transportation level, though equipment availability continues to be a challenge, as in many other countries. In Australia, 40' containers are in very short supply, where usually there is an excess, and virtually all airfreight services have been suspended. In New Zealand, ONLY the warehouses of non-essential businesses have been allowed to open to receive and unload containers, and the government will announce Monday whether restrictions can be eased to level 3 where they are currently at a level 4.

Chile/Argentina: Shipments are moving normally with no significant disruptions.

Europe: Germany restrictions will ease beginning Monday 4/20 with smaller stores and schools back in session with reduced class sizes. For transportation, there are some delays in bookings and carrier responses, and a spike in inter-European trucking prices, but cargo is still flowing in and out of ports. In France, the quarantine period has been extended to May 11, and equipment availability continues to be an issue, especially with lack of reefer containers. Spain experienced a partial opening this week with non-essential activities allowed to resume 4/13. Intermodal services are restored to normal and ports and Customs operations are fully functioning.  Blank sailings remain an issue with multiple carriers cancelling vessels in week 17.

For a full view of the global situation, please find the attached presentation updated as of 4/17/2020. We will continue to keep our members updated with the global COVID-19 situation and appreciate the support of all of our members, customers and colleagues during these trying times. As always, please feel free to contact us if you have any questions.