Coronavirus Disease 2019 (COVID-19) Update

Please see regional sections for updates.

Carriers push forward their plans for added passenger capacity but continued restrictions in some regions, such as Asia Pacific, still create uncertainty. Many of the passenger flights are focused on travel destinations and do not necessarily add capacity where it is needed most. Even where passenger flights align with traditional cargo flows the available capacity is still not meeting overall demand.

Kuehne+Nagel North America continues to secure space as needed based on customers unique supply chain needs. Capacity to and from North Asia is extremely challenged with the drastic reduction in flights due to government-imposed Covid-19 policies. Capacity on other trade lanes slowly recovers but remains at or below pre-pandemic levels while demand is generally much higher. Our specialists are able to find solutions for our clients and continue to do so with stringent planning and forecasting.

The market continues to face a shortage of labor.  This is especially evident with the ground handling agents who are responsible for the buildup and breakdown of cargo moving in and out of North America.  Export cargo generally moves with proper planning and coordination with our key airline partners.  Import cargo can still take several days to be made available for recovery in key gateways like JFK and LAX.

Covid-19 situation in the region is stable. There are currently no restrictions in plane and our air logistics operations are fully functional.

Even though most of the carriers are operational, there is still significant lack of capacity overall in the region due to constraints on the sea freight side.

Brazil airports are congestioned due to customs strike, causing delays in customs clearance and retrieval of the cargo.

Overall in the region the airports are running in full capacity.

The Covid-19 situation continues to vary across Greater China with some cities imposing lockdowns, while others putting restrictions and controls including quarantine requirements for cross-city traffic. Due to the rising cases in Shanghai and Kushan areas continue with large-scale lockdowns, which impact supply chain operations. On a positive side, the overall situation is gradually improving and more and more manufactures are resuming their operations.

Most carrier operations from Pudong airport are suspended, with 60% of flights cancelled in April. Such situation is expected to continue till the lockdown is lifted. In addition, capacity challenges across the region continue due to Russian airspace restrictions leading to longer flying time, resulting in lower payloads.

Due to the new Covid-19 outbreak inbound capacity is tight in all China mainland airports due to suspended customer operations or trucking interruption in lockdown cities. Pudong airport operations continue to be disrupted. Transfer of cargo from Kuehne+Nagel warehouse to Pudong airport terminal is carried out with significant delays. Our teams have put alternate solutions in place to support the operations in/around the airport and also cross-border movement via Hong Kong gateway. Imports into CN/JP/KR are being supported via the Hong Kong gateway.

As the virus continues to surge, our air freight operations in Europe are running stable. The demand for air freight on all trade lanes remains high. 

Capacity remains constraint on all trade lanes. The challenging situation in sea logistics continues to put additional pressure on the tight capacity situation as companies across all industries are shifting from sea freight to air freight to fulfill the needs of their customers. 

All major airports in EUR struggle to handle the high volumes. Additionally, Covid-19 is effecting the available workforce which impacts the overall handling situation negatively.

The operational situation in Middle East and Africa remains stable without any interruptions.

As countries in MEA are re-opening for travel, carriers are re-instancing and increasing frequencies. QR and EK are re-converting passenger freighters back into passenger to meet the demand. With restrictions being lifted, capacity and frequency are approaching pre-Covid levels. 

Stable situation across the region.

We take this opportunity to thank our drivers, who are tirelessly collecting and delivering shipments under challenging conditions. We also extend our thanks to our customers and recipients of shipments who allow our drivers access to their restrooms. We truly appreciate those who go out of their way to help our drivers do a great job. By all of us working together and showing respect to each other, we jointly contribute to keeping our supply chains afloat.

Like European overland markets, the Kuehne+Nagel network is facing less restrictions compared to the spring period last year. The development on an overall European scale however is still rather volatile and impacted by still existing Covid19 limitations in certain areas. This can lead to some partial reroutings and small delays in selected lanes. The current expectations for the next weeks force us to keep the following pre-conditions in place until further notice. 

For any country in Europe, we still strongly ask shippers to check the availability and readiness of their customers to receive shipments during business hours, before handing shipments over to us. Shipments which cannot be delivered due to absent consignees will be returned to shippers at their cost. In case shippers are not able to receive these returned shipments, storage cost will apply.

In case of pick-up orders customers also need to ensure readiness of their pick-up addresses. If this is not given, cost of the pick-up attempts will be charged.    

Further customers need to ensure that consignee’s will confirm receipt of cargo.

Trucking services in China are back to normal. Cross-border trucking to and from Hong Kong (SAR, China) and the China/ Vietnam border (Pingxiang border) is operating as per normal. Additionally, operation at the Vietnam and Laos/Cambodia border as well as domestic transportation within Vietnam are also back to normal.

For Thailand, domestic and cross-border movement for commercial and essential goods between Thailand and Myanmar/ Laos/ Cambodia is allowed. All drivers need to undergo health checks. 

For cross-border trucking to Central Asian countries and Europe, there is heavy congestion at China/Kazakhstan border (Horgos and Alashankou borders) due to the preventative control measures for COVID-19. 

Similarly, trucking  to Europe via the China/Russia route (Manzhouli border) is also experiencing the same issue due to the increased control measures implemented. 

The Malaysian government has announced nationwide Movement Control Order (MCO) starting May 12, 2021, till June 7, 2021 Movement of goods in and out of the country must adhere to the MCO standard operating procedure. We do not see any impact on domestic and cross border transportation.

Many Indian states have imposed strict lockdowns while other states have announced restrictions on public movement. This has no impact on domestic transportation.

The situation and border control measures in most of these countries are evolving rapidly as the COVID-19 situation continues to change. We are closely monitoring the situation and will provide further updates on this page.    

US, Canada and Mexico border restrictions only impact "non-essential" travel and do not apply to the transportation of goods and services. Stay-at-home orders around the country are being lifted in some states and extended in others, however these measures are not directed at commercial truck traffic. Check with individual partners on their operation status prior to shipping because nearly all LTL carriers will be returning freight immediately (<1 day) after a refusal due to a closed consignee. Cargo cannot be held at the destination due to large volumes of undeliverable freight resulting in additional charges.

US domestic truckload capacity is tightening, but federal and state governments are committed to keeping the supply chain moving. The majority of LTL and Small package carriers will suspend physical signatures. In adherence to the “Social Distancing” policy, drivers will not be obtaining signatures from consignees. Drivers will record the exact time, note any exceptions and obtain the name of the person who is accepting the freight. As spot market truckload rates rise to highly affected areas, less drivers are willing to take loads into these areas forcing the ad hoc rates to climb. Urgent orders of retail goods drive rates up for van and reefer equipment.  Retailers, including e-commerce outlets, rely increasingly on spot market providers to re-stock shelves immediately, while truckers report long wait times at pickup and delivery points.