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DSV / PANALPINA DSV Air and Sea Update As of April

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DSV / PANALPINA DSV Air and Sea Update As of April DSV / PANALPINA Manila, Philippines Tuesday, 14 April 2020 DSV Air and Sea Update as of April 14, 2020: Current operational situation: Brokerage and Transportation: (Minor updates as of April 10, 2020) 1. Trucking: ❖ Anticipation of rates to increase from transporters to cover hazard pay, unavailability of drivers and longer queues due to checkpoints ❖ PPA has issued a memorandum circular no. 13 of 2020 which states that trucks carrying cargoes from one port to another port in the country, regardless of whether they will be traversing a body or bodies of water shall be allowed continuous access to and from said ports. Carrying of empty containers for withdrawal or repositioning shall also be ensured continuous entry to and from the ports and inland Container Yards/Depots/Warehouses ❖ Truck drivers and helpers shall be subject to stringent health protocols of the Bureau of Quarantine, Department of Health and Local Government Units at the port before they will be allowed to enter or leave the port/s and proceed to their subsequent or final destination 2. To help decongest Manila Port, the government issued a more stringent policy to oblige importers to clear & release from the ports all their imported shipments within the prescribed timeline or their cargo will be declared abandoned or will be subject for disposal. This latest policy, Joint Administrative Order 20-01 (JAO) was mutually issued by the Dept. of Finance (DOF), Dept. of Trade & Industry (DTI), Dept. of Agriculture (DA), Bureau of Customs (BOC) & Phil. Ports Authority (PPA). Highlights of the JAO are as follows: ❖ Importers/Consignees are directed to affect the immediate withdrawal of reefer containers or face abandonment proceedings. ❖ Reefers must be pulled out within seven (7) days / chilled cargo within five (5) days from discharge date. ❖ Cargo in the terminal beyond 30 days from discharge date are required to be withdrawn within the next 5 days or be considered abandoned and subject to immediate disposal. ❖ List of all reefer containers in the port including names of consignees will be published in government websites and newspapers. ❖ BAI, BFAR, BPI, NMIS, FDA who issues import clearance/permits for food & animal food, meat-related importations are obliged to issue these permits within 3 working days from the issuance of this JAO ❖ Reefer containers stationed at the port for more than 30 days now are required to be withdrawn within five (5) days from the issuance of this JAO. Otherwise they shall be considered abandoned subject to immediate disposition by DOF/BOC. ❖ Reefer containers scheduled to arrive after the issuance of the JAO must be withdrawn within ten (10) days from discharge. Otherwise, they shall be considered abandoned. ❖ Brokers should lodge online import entries within 2 days from date of discharge & BOC shall issue Final Assessment Notice (FAN) within 24 hours from the date of the online filing. After the FAN is issued, importers have 24 hours to pay the duties, taxes & other charges. Importers/brokers has 3 days to claim/release the goods from the date of payment, otherwise cargo will be declared abandoned & will be disposed of by BOC. ❖ BOC shall relax the selectivity process for food, medicine, medical & other necessities importation by adopting the Greenlane Process flow. ❖ OOGs, heavy equipment or project cargoes are required to be claimed & released out of the port within five (5) days from date of discharge. Otherwise, PPA will transfer these cargoes to designated offsite locations. ❖ ICTSI & ATI are directed to issue electronic gate pass which can be emailed to truckers/brokers. ICTSI had been doing this for years now, ATI will start on April 06, 2020. ❖ For shipping lines, they are obliged to accept online application, issue electronic delivery orders (DO) & container release order (CRO) 3. Since Monday, April 06, BOC e2m system is experiencing serious slowdown 4. BOC office at 2nd floor of Pair Cargo warehouse shall remain temporarily closed until further notice. A Special Composite team located at the Ground Floor of Pair Cargo warehouse were assigned by BOC NAIA to ensure continuous processing of import consumption entries and unhampered government services for all stakeholders. PEZA import shipments are not affected by this change 5. With the BOC system shutdown, import/export entries can still be filed but won’t be accepted & processed by BOC until the system gets operational again. The 1pm resume of operations remain to be seen Ocean Freight: (Minor updates as of April 10, 2020) 1. Carriers ONE (Ocean Network Express), Maersk and Hamburg Sud have applied a Congestion Surcharge (CGD) of USD 1,000 per container to all reefer container while CMA CGM is charging $1,400 per container to cover additional costs related to the unexpected but necessary arrangement of shipments and associated plug-in charges, monitoring fees, etc. ❖ This measure is effective immediately for reefer cargo arriving into Chittagong and Manila from 3rd April for ONE and 6th of April 2020 for Maersk onwards and for regulated trades the effective date will be 3rd May 2020 for ONE and 1st of May for Maersk until further notice ❖ The surcharge will be collected from the freight payer (FOB shipment) 2. Carriers/Shipping lines have started to RETAIN and NOT TO DISCHARGE containers in Manila North port and possibility to divert the dischargement to another port due to the current congestion in Manila North port ❖ Expect delays in the release and arrival of containers ❖ Expect additional charges to be passed on by shipping lines to cargo owners caused by diversion of port, transhipment and other port related charges ❖ Most of the affected cargo are reefer and perishable cargo, not exclusively but will most likely to affect all cargos, and would expect to intensify until port congestion is not resolved 3. In view of the operational challenges, to facilitate cargo movement and keep your cargo in optimum condition due to the evolving situation the carriers and local ports in conjunction with customs may make temporary storage arrangements for your cargo that has arrived or is in transit. This may involve diverting your cargo to another port location or CY for interim storage ❖ As we try our best to safeguard your cargo, please note that all related costs will be on Merchant’s account upon delivery ❖ Our local office will reach out and advise details if your cargo is affected ❖ If you prefer to discharge your dry or reefer containers currently in transit to Manila at another Luzon port, specifically Subic or Batangas, kindly contact your local representative to make the arrangement Air Freight: (Minor updates as of April 10, 2020) 1. Started last March 28, 2020, all remaining International Flights operating at NAIA Terminal 2 & 3 have been operated out of Terminal 1. According to MIAA, this is to streamline the Airport Operations since the total number of flights daily have gone down drastically. 2. Please see the latest Airlines official flight advisories marked in red and green that we gathered as of today and have it summarized as follows: I. Complete cancellation of flights: • Cebu Pacific (5J): Flight Cancellation will take effect from 19MAR-14APR2020. • Qantas (QF): Last flights out MNL on 19MAR, flights remain suspended until further notice. • United Airlines (UA): Suspended their MNL-GUM/ROR-MNL flights from 22 March 2020 to 02 May 2020. • Cathay Pacific (CX): Due to the further deterioration of the travel environment brought about by Covid-19 and its resulting travel restrictions and health concerns, CX HKG/CEB flights will be CANCELLED between Apr and May. • Emirates (EK): Due Emirates’ decision to cancel all their passenger flights, ex-PH flights will be cancelled effective 25 Mar 2020 until further notice. Last flight ex-CEB/CRK and ex-MNL is on 24 Mar 2020. • Scoot (TR): Cancelled the following flights; CEB-SIN from 29 March to 15 April 2020, MNL- SIN 20 March to 30 April 2020 and CRK-SIN 19 March to 30 April 2020. • Eva Air (BR): CEB-TPE flight for the month of APRIL BR 282 is now CANCELLED for the whole month of APRIL. • Air China (CA): In line with the extended enhanced community quarantine, it announced the further flight cancellation from 28 March to 14 April to be further suspended from 15 April to 30 May 2020. • Silk Air (MI): Extended the flight cancellation on their CEB and DVO flights until Apr. 30, 2020. • Saudia Cargo (SV): MNL-RUH (SV861) and MNL-JED (SV871) cancellation has been further extended until 30APR20. • Air Niugini (PX): Flight cancellations extended until 31 May 2020. • South African Airways (SA): Flight cancellations extended until 31 May 2020. • Air Macau (NX): Flight cancellations extended until 30 April 2020. II. Flights remain operational, downgraded or will cancellation on specific dates: • Asiana Airlines (OZ): Changes of our flight schedule of OZ703/OZ704 ICN/MNL/ICN – from Daily flight to Days 2, 4 & 5 only. • Qatar Airways (QR): QR928/929 DOH-MNL-DOH flight will be reinstated from Apr. 1st to 15th. This is in addition to the operational flights i.e. QR933 MNL-DOH and QR931 CRK- DOH. • Cathay Pacific (CX): CX907/906 HKG-MNL-HKG to operate on both PAX and Cargo on Days 3, 5 & 7 and Cargo Only on Days 1, 2, 4 & 7 for period from Mar. 29- May 31.. • Etihad Airlines (EY): All MNL PAX flights remain suspended UFN but will introduce a “mini freighter” using primarily a 787-1000 aircraft to complement the existing freighter network operated by fleet of Boeing 777F freighters. The tentative schedule to fly MNL is by Days 3,5 & 6 commencing next week (April 01, 03 & 04). • Eva Air (BR): BR flight cancellation due to Operational Reason i.e.
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