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Customer Advisory COVID-19 Global Update

July 6, 2022

More than 27 months ago, we started this report with the intention to inform you about the short-term impact of the COVID-19 pandemic on our common business. The disruptions the pandemic caused often came unexpected, were difficult to predict and sometimes hard to explain. Our Global Customer Advisory was designed to deliver transparency and understanding for the extraordinary conditions under which we all had to operate. We hope it gave guidance towards solutions and supported the collaboration inside our partnership.

Today we issue our last COVID-19 Customer Advisory Report. Not because COVID-19 has ended everywhere, rather due to the fact that its impact on business has diminished. The editorial team at Aramex Global would like to thank you for your attention, your feedback and encouragement over this time.

Please continue to be engaged with your Aramex Global Account Managers on your latest plans, prices and projections. They will invest the utmost effort to support your business with corresponding solutions.

* For Ukraine Updates, please stay informed here: Ukraine Crisis Update | Aramex Global in Europe *

Executive Summary

Air Freight

  • The lockdown in PVG officially ended as of Jun 1, but restrictions are not completely relaxed.
  • China is still facing delays of import cargo in all major ports, which impacts manufacturing.
  • Flight operation services currently face disruptions according to the latest bans on air space and COVID-19 restrictions, hence adjustments to the flight schedule are unavoidable.
  • Increasing numbers of COVID-19 infections are causing delays and diversions at Ground Handling Agents.

Ocean Freight

  • Global ocean market demand slows down, however still expected to outperform new building capacity supply for 2022. The geopolitical situation in Ukraine and Russia as well worldwide congestion in ports and at terminals is impacting the market negatively.
  • Continuously missing capacity in the carrier service set-up adds further negative impact to the supply, keeping the supply and demand delta imbalanced. Carriers advise about effectively 15 – 20% less capacity available due to capacity being tied up through slow port productivity, congestion, and other schedule delays, including blank sailings.
  • Global carrier schedule reliability is currently at 36.4% and the average delay of vessel arrivals has improved to now at 6.2 days.

Land Transport

  • Only very few restrictions to contain the COVID-19 pandemic are still established in some European countries, directly or indirectly affecting transportation.
  • In case of disruptions, we follow our pre-defined contingency plans to ensure flows of cargo. We are adapting our transport service offerings daily to the needs of our customers.
  • Some receivers may continue to have limited operations. All shippers may check the delivery possibility with the consignee to avoid cost for storage or return shipments.

Contract Logistics

  • Global situation remains heterogeneous, though infections and respective governmental restrictions decrease, overall.
  • Our sites keep operating stable, and we continue to monitor the status quo very closely while having respective BCP’s in place.
  • Next to servicing our customers, the well-being of our employees remains a key priority.
  • To keep our customers’ businesses running, we are in close contact with all our partners, offer
    short-term support and carry on assisting with all conceivable warehousing services on short notice.

Fairs, Events and Special Logistics

  • The situation within the global exhibition industry has improved significantly as nearly all markets are open again. The only exhibition market of importance remaining closed is Hong Kong.
  • Our teams worldwide are in close contact with trade fair and event organizers as well as the respective associations and authorities and able to advise you on the current situation and provide the required tailor-made services.

Global Market Updates

  • Global

(Jun 22, 2022) – The situation continuously improves in Greater China, and we notice no change or deep impact of business in Europe, Americas, and MEA. Our operations and customer services remain stable. There is no change in monitoring the situation in all regions very closely.

We continue prioritizing the protection of our staff and having dedicated labor management in place, to keep our customers’ businesses running. So do we continue to focus on dedicated guidelines and preventive measures with respective and individual BCP’s in place.

For short-term support we keep up our customer service offering on short note:

→ In case you need temporary space, or any additional services, reach out to your Aramex Global Account Manager or local contact person!

  • Europe

(Jul 5, 2022) – All sites in our operations in Europe currently remain fully operational with precautionary measures in place for the health of workers.

  • Asia Pacific

(Jul 5, 2022) – The following pertains to the operational situation in the APAC Regional Clusters:

General APAC Region SITREP

→ There are no operational impact updates since the previous advisory as China progressively gets back on track.
→ Some delays may still be expected due to backlog.
→ No major operational changes or updates from previous advisory for ANZ; India sub-continent, Northeast Asia, Southeast Asia cluster countries.

Our approach remains unchanged with priority focusing on the health and safety of our workforce, as well as remaining vigilant in monitoring the situation to mitigate risk and events with potential impact to operations in all our APAC countries. In addition, the war in Ukraine will also be expected to have both direct and indirect impact on operations and business in the near term, with trade compliance and sanctions in effect.

Our service levels are maintained with CL operations available to support prevailing customer needs, in compliance with local regulatory requirements. Some delays may be expected due to availability of workforce and enforced hygiene and monitoring SOPs in certain instances.

Should there be any specific account operational effects, updates will be provided to our Aramex Global Account Management teams where necessary. We recommend being in close contact with your Aramex Global Account Managers for any further details or further support if necessary.

→ For India, please refer to our India website for detailed information via download.
→ For most recent updates on Australia, please refer to our Australia website.
→ To receive APAC daily customer advisories in your mailbox, please subscribe here.

  • Middle East/Africa 

(Jul 5, 2022) – All Aramex Global contract logistics facilities in MEA are operational as per the appropriate health and safety standards and other regulations levied by the local government.

  • Americas

(Jul 5, 2022) – Our Contract Logistics operations continue to operate with proactive measures for the health and safety of our team and sites in general while we keep up with our customers’ business standards. At a country level, recent changes due to the pandemic have spiked slightly in some geographies, while others continue to be stable; hence, we continue diligent and monitor closely the situation daily. Mask mandates have been re-initiated at some sites while in others reduced / eliminated depending on local / country legislation as well as customer requests.

→ USA: Operations in the USA remain operational with precautionary measures in place for the health of our people and delivery of services to our clients. There has been a slight increase on business disruptions as a result of COVID-19 absenteeism but with caution, and precautionary measures remain in place. There are some sites customers have requested re-instatement of masks for precautionary measures until infection cases drop.
→ Mexico: All Contract Logistics sites in Mexico remain operational. COVID-19 numbers are normalizing hence now have a low absenteeism rate and yet we are doing as much as possible to minimize the impact to our personnel and facilities.
→ Canada: All Contract Logistics sites in Canada remain operational with health and safety measures in place for the safety of our associates and customers. Measures / restrictions have eased based on federal mandates. All sites remain operational, compliant, and managing labor constraints effectively.
→ Brazil: All Contract Logistics sites remain operational in Brazil. Measures to reduce the risk of contamination continue to be the standard while adhering to public and company health and safety measures.

Aramex Global Organizational Update

Aramex Global is closely monitoring the COVID-19 developments globally. In our locations across all continents, we have taken action to protect our employees, customers and business. Implementation of strict safety and hygiene measures, such as extended mobile office arrangements, continuation of common preventative / mitigation measures, various vaccination or test offers, is given. Depending on regionally deviating pandemic situations, adequate procedures are established and adjusted based on need to ensure the continuation of business.

Thank you for your patience and support.
Aramex Global COVID-19 Customer Advisory Team

 

We have used our utmost care in providing the information above. While the information above has been provided to the best of our knowledge and ability, the Aramex Global Group does not assume any liabilities arising from this information of the use thereof.

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