Wuhan Coronavirus Impact Update 31st January 2020 – 10h French time

January 31st, 2020

FAQ

GENERAL OFFICE

1. Q:  What is the situation in China for Bolloré Logistics?

A:  The Wuhan Coronavirus situation is evolving fast, creating considerable challenges to the China national health system. Currently none of our employees and their close relatives in China has been contaminated nor being suspected of carrying the virus. Health and Safety guidelines as well as preventive checks on their journeys during the Lunar New Year holidays have been carried out. We are sending protective and monitoring equipment to all our offices. A comprehensive employee health emergency reporting system is set up.

2. Q:  When will Bolloré Logistics offices resume work?
A:  According to the General Office of the State Council, all branches, offices, warehouses and plant-stationed function of Bolloré Logistics China will extend the CNY holiday to 2nd Feb. Some provinces and cities have announced specific date of resume work (10th Feb) and Bolloré Logistics will follow the regulation.

Resume work on 10th Feb: Shanghai, Hangzhou, Ningbo, Suzhou, Nanjing, Wuxi, Guangzhou, Shenzhen, Xiamen, Qingdao
Resume work on 3rd Feb: Beijing, Tianjin, Dalian, Xi'an, Chengdu. (Subject to change according to further local government notice.)
Resume work on 14th Feb: Wuhan

3. Q: Are there teams working remotely during the extended off-work period?

A: Yes. Bolloré Logistics China management has set up a BCP (Business Contingency Plan) team.

Appendix 1 – Date to Resume Work


4. Q: The World Health Organization declared the novel coronavirus outbreak a Public Health Emergency of International Concern(PHEIC). What does it mean and what is the impact?

A: Declaring the coronavirus PHEIC would allow WHO to better coordinate the international response and hold nations to account if they overstep the organization's standards. The declaration of a PHEIC is meant to help support less developed countries and to try to prevent the virus from spreading in those places that are less equipped to detect the disease and handle infections. In making the announcement, WHO leaders urged countries not to restrict travel or trade to China.

 

AIRFREIGHT

1. Q: Are airports in China still operating?

A: Except for Wuhan airport which was closed on 23rd Jan for commercial flights (only operational for air & relief mission are allowed) all other airports in China Mainland and Hong Kong are still operating.  

2. Q: Can you still receive export cargo in your airport CFS warehouse in China?

A: Yes, with exception of Wuhan, all other Bolloré Logistics China branch can receive cargo and process export / import operation with one-day prior notice.

3. Q: Are all flights ex China cancelled? Can you still accept booking?

A: At this moment only Wuhan airport is closed for commercial flights but all other airports in China Mainland and Hong Kong are still operating. Capacity is however reduced due to the extension of Spring festival holidays and a growing number of flights cancellations.

4. Q: Which Airlines companies suspended their passengers' flights:

A: 34 airlines have canceled flights to China amid coronavirus fears — here's the full list: 

https://www.businessinsider.sg/airlines-canceling-changing-flights-to-china-amid-coronavirus-fears-2020-1/?r=US&IR=T

5. Q: In case of lock down of any other major airports in China, would it be possible to   use sea/air via neighbouring regions: Korea, Taiwan, Hong Kong?

A: Yes, sea/air via neighboring regions (Korea, Taiwan) or truck via Hong Kong is feasible in case of lock down of Chinese airport.

Appendix 2 - Flight Suspend-cancel in 2020 GCN

 

OCEAN FREIGHT:

1. Q: What is the situation at Wuhan Port?

A: There is no barge service in/out Wuhan. Yangtze River feeder service will skip Wuhan Port. Destination Service in Wuhan Port is stopped for now.

2. Q:  Are other Chinese Ports operation being impacted? Is there any scheduled cancellation due to Coronavirus?

A:  All loading/unloading operations in Chinese ports are operating. However barge service will be delayed. For vessel schedule changes please refer to carriers website.

3. Q: Do carriers accept bookings after Chinese New Year (i.e.: from February 3rd onward?)

A: Yes, some carriers open for space booking from 3rd Feb. Delay is expected as there will be only limited duty staffs in shipping lines. We will have Bolloré Logistics origin staffs mobilized for urgent booking requests.

4. Q: How to deal with detention and demurrage if containers have to be staged in destination port until work resumes?

A: For the time being, there is no definite guideline on this. We will inform as we collect clear policies.

5. Q: Does CFS warehouse accept cargo?

A: CFS warehouse has to follow local preventive measures strictly. They will only be able to accept urgent cargo upon request. Cargo acceptance will follow the checks and quarantine process for truck drivers and on-site workers.

6. Q: Will the ocean carriers make blank sailings to some Chinese ports during this period?

A: No updated schedule received from carrier for inbound. If any blank sailing, we will inform you once the information is available from carrier.

 

CUSTOMS DECLARATION:

1. Q: Are Chinese customs still operating?

A: According to the notice of the State Council, the Customs will officially resume work on February 3, 2020. Now China Customs are still operating however it is on a reduced shift until 3rd Feb, and until then some delays can be expected.

2. Q: Is there any green channel to declare import/export goods?

A: The customs only provides green channel declaration service for donated materials, and other goods are declared according to the normal declaration channel.

3. Q: Is there a value threshold for personal imported goods like masks sent to personnel address?

A: If the goods is from Hong Kong, Macao and Taiwan, the value threshold is 800 CNY per shipment. If the goods are from other countries or territories, the value threshold is 1,000 CNY per shipment.

4. Q: If the company purchases medical protective material for staff, can they enjoy duty-free policy?

A: Imported protective articles for enterprises' own use are not exempted from tax. Only donation can have tax exemption.

5. Q: Will the Chinese government do sanitary control for the export goods?

A: China will not do sanitary control for the export goods at this moment.

6. Q: During the outbreak of the epidemic, will the import goods declare for more than 14 days be exempted from the delayed declaration fee?

A: the Customs will arrange Customs officers to be on duty every day, and there will be no reduction or exemption of delayed declaration fee.

7. Q: What is the HS code for the masks?

A: According to GAC customs officer's feedback, the mask should be classified under the HS code of 6307900000, the duty rate is 6% and the VAT rate is 13%. From 30th Jan 2020, the imported masks and other medical articles from PVG, whether these goods used by enterprises themselves or not, shall be provided with the certificate of NMPA (National Medical Products Administration) or registration certificate for medical device for customs clearance. Personal shipments and hand carry remains no change.

 

TRUCKING

1. Q: Could truck service be arranged during holiday?

A: Yes, if pick up is within the same provincial area, except Hubei province.  

2. Q: Can cross-province truck still be arranged during off-work extended period ?

A: This needs to be validated with the trucking company case by case. As truck service might be impacted by the local government policy.  

3. Q: How long will it take to pre-book truck resources?

A: For the truck service within a province, normally 2 days in advance depending on truck quantity.  The earlier the better as truck capacity might be impacted due to a general lack of drivers not yet back to work, in particular the ones from Hubei province.

4. Q: How does the factory arrange truck booking to Bolloré Logistics?

A: As usual, the factory shall book to related Bolloré Logistics origin office and Bolloré Logistics origin office on duty staff will check and best possible time. 

5. Q: Are the cross-border trucking services between Shenzhen and Hong Kong operating as usual? In case of closing of the border for truck, what are the alternative routing options both for export and import cargo?

A: Service between South China and Hong Kong are still operating as usual however as Customs will remain under reduced shift until the Spring festival holidays extension is over, some delays can be expected. If bordure with Hong Kong happen to close, we can arrange export shipment through Chinese airport directly (CAN/SZX or other) or alternatively sea/Air through Korea or Taiwan.

6. Q: How do Bolloré Logistics control driver's health condition?

A: We requires trucking companies to sign a guarantee letter ensuring the necessary preventive measures are properly taken, including but not limited to: 1) the drivers have no contact with confirmed or suspicious coronavirus cases within 14 days, 2) the drivers have no fever, 3) trucking companies will distribute masks and preventive material to drivers to protect the drivers and disinfect the trucks, 4) trucking companies will keep instant communication about the health conditions of the drivers.

 

WAREHOUSING & DELIVERIES:

1. Q: When will the warehouses resume operations?
A: Our warehouses are in compliance with local government notification of extended holidays. Dates may change according to government updates.

                Beijing: resumes on 3 Feb
                Shanghai: resumes on 11 Feb
                Kunshan: resumes on 10 Feb
                Guangzhou: resumes on 10 Feb
                Shenzhen: resumes on 10 Feb
 

2. Q: Are courier services available?  
A: Services by SF Express and EMS are available within China with the exception of Hubei province. 

3. Q: When will domestic delivery services be available?

A: Full Truck Load (FTL) and domestic airfreight services are available with exception for Hubei province. We are still getting confirmation of LTL trucking after 3rd Feb. Here again, drivers shortage will be a challenge.
 

RAILWAYS

1. Q: Is there any impact on rail services between China and Europe?

A: A: At this stage Wuhan rail hub and operator have suspended both their westbound and eastbound services until further notice. The other rail hubs are less impacted, see details in point 3.

2. Q: What about the inbound containers on their way to Wuhan?

A: Any container on the way to Wuhan cannot be stopped anywhere in China.

At this stage we have to wait for further notice after ATA Wuhan terminal from the Railway Authorities, when containers can be collected or re-routed.

3. Q: How about other cities and hubs?
A: Outbound services are largely impacted. Some hubs have postponed their services until further notice including Xiamen, Hefei, Yiwu, etc.

While some other hubs are trying to maintain their services including Xi'An, Shenyang, Suzhou, Changchun. Departures are most likely from week 07, from when we could get some space yet we have to anticipate some delay due to a changing situation.

Inbound services into Zhengzhou, Xi'An, Chongqing, Suzhou, Changchun are less impacted: they are still maintaining their initial schedule. Most departures from Europe are most likely to resume from week 07. 

4. Q: How about trucking pre-carriage and post-carriage services in China? Is it very hard to arrange as we heard it is lack of drivers due to the extended holiday?

A: Trucking arrangements will face the dual impacts of an extended holiday period and the lack of    drivers. A particular concern is with trucks crossing provinces to access main hubs.

For FCL, We suggest to book a train departure or arrival within the city or at least within the province to avoid this province crossing issue. If not possible, we have to confirm case by case with train departure schedule and trucker.

For LCL it's estimated the trucking arrangement across China will gradually resume normal after Feb 3 

5. Q: What is Bolloré Logistics' proposal on rail services at this moment?

A: For LCL Westbound, we tentatively plan the 1st departure after holiday on Feb 15 for our own consol because it's estimated the trucking arrangement across China will gradually resume normal after Feb 3. We will load container at our XIAN CFS and connect the train departure there directly.

For FCL Westbound, as for now, we propose XIAN and SUZHOU with some departures in WK07. If we could wait till Feb 3 when rail operators get back to normal or at least get people on duty, we will have more departures and solutions.

For FCL Eastbound, it's less impacted and we propose major hubs in the center of China: Zhengzhou and Xian with more train schedule.  For LCL Eastbound, we propose Zhengzhou but will also plan one own consol box departing Duisburg on Feb 19 which will arrive at Xian terminal instead of Wuhan.

6. Q: It's said Russia has locked down the borders restricting railway transportation between China and Europe as from Jan 31, is that true?

A: There was one previous instruction issued by Russian Railways stating such fact but very shortly it was withdrawn following Russian Ministry of transport instruction so the service has not been disrupted. We shall keep a very close follow up and inform if any further update.

 

PRECAUTION TO BE TAKEN RELATING THE RECEPTION AND HANDLING OF PACKAGES AND GOODS FROM CHINA.

According to information provided by French health authorities:

1- The risk of contamination is limited.

The coronavirus (2019-nCoV) causes respiratory illness in people and can spread from person-to-person. Spread of 2019-nCoV between people has generally occurred between close contacts

The virus can survive for a few hours or even a few days in the environment.

Regarding the previous SARS and MERS-Cov epidemics, no infection subsequent to a touch with an infected object has been recorded

 

2- How can workers protect themselves?

Packages from China potentially contaminated:

  • Sea freight: the time is too long for the virus to survive;
  • Air freight: the conditions in the hold (dry air) are not favorable for virus survival

Hygiene measures should be rigorously applied/Reinforcement to reduce exposure to and transmission of a range of illnesses which include hand and respiratory hygiene:

  • Frequently clean hands by using alcohol-based hand rub or soap and water;
  • When coughing and sneezing cover mouth and nose with flexed elbow or tissue – throw tissue away immediately and wash hands;

Wearing a surgical mask is not necessary for staff.

As a reminder, wearing a surgical mask is recommended only for infected people presenting symptoms of the disease: fever, cough, breathing difficulties) and for the medical personnel taking care of the sick people.

We encourage you to be in touch with your respective sales or customer service representatives in order to address any specific enquiry you may have.

A generic e-mail address is also at your disposal to address your questions:

 

infocoronavirus@bollore.com

 

We will of course continue to keep you updated as situation evolves and will do our utmost to minimize the impact to your business.  

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