Chinese activity level slowly picking up; severe capacity issues to be expected

The Chinese authorities introduced different measures on different levels to contain the corona virus outbreak. Following the mandatory extension of the Lunar New Year businesses are slowly returning to normal in most places.

At this stage, our 21 branches with the exception of Wuhan (Hubei province) are open. We are operating with a limited number of staff members in the offices while the remaining employees work from home. When manufacturing companies restart productions we expect the already tight transport and logistics situation to translate into significant capacity issues.

Multiple airlines have either suspended or reduced the number of flights to and from Mainland China and as a consequence, there is considerably less than usual capacity available per day. 

DSV offers a potential solution

Determined to assist our customers in tackling some of the resulting backlogs and offset supply chain disruptions, DSV offers a unique solution via our charter network.

Beginning 25 February, our Boing 747-8 freighter airplane will operate three times per week, east and westbound, between Huntsville, Alabama in the US and Shanghai in China. The solution ensures that DSV will be in full control of the capacity available on this charter solution. Taking advantage of the Huntsville hub and spoke model, we can connect to all continents via our DSV controlled charter network. 

The situation in general 

DSV remains strongly committed to the safety of our employees while working to mitigate any potential impact on our customers’ supply chains. To this end, we have established several preventive actions to safeguard the health and well-being of our employees.
We will continue to monitor the situation closely and keep our customers and other business partners updated on new regulations and government guidelines as well as other developments which may affect our operations and processes. We will offer contingency measures to the extent possible.

For more detailed information, please consult our Q&A on the subject 

Please direct questions to your usual contact person.