Logistics during the Corona pandemic: what questions frequently arise
Switzerland is an exporting country. Many companies are therefore dependent on functioning logistics in the international movement of goods. However, restrictions are to be expected in the course of many measures against the Corona pandemic. How do logistics service providers support their customers? Experts provide answers to pressing questions.
How does the Corona pandemic affect the international movement of goods? Many exporters have more than a few burning questions when it comes to logistics. The logistics provider Dachser Switzerland has answers ready: Urs Häner, Managing Director European Logistics Switzerland, and Samuel Haller, Country Manager Switzerland for the Air & Sea Logistics business segment, Dachser Spedition AG, provide information.
It's home office time again. Can I still reach my scheduler by phone or is communication only by e-mail?
Urs Häner: Of course, you can reach our dispatchers by phone. Due to the pandemic, we had during peak times
around one-third of the workforce worked from home. The majority of these were employees with administrative tasks, such as
for example accounting, billing, sales/HR. Employees in operational processing such as export, import, disposition, etc. were and are always on site. Our organization is set up in such a way that each department is always also staffed on site. Communication with the customers and coordination with the employees at the mobile workstations is thus ensured at all times.
Swiss, but also other airlines, are offering fewer and fewer flight connections to and from Zurich, Basel and Geneva. On-time delivery is a crucial competitive factor for us. How do I ensure that my export air freight shipments nevertheless reach the recipient on time?
Samuel Haller: In addition to direct flight connections to and from Swiss airports, Dachser also offers airfreight routings via our
Gateway in Frankfurt in Germany. Here, goods from all over Europe are bundled and flown overseas. Imported goods for Swiss customers from other continents are deconsolidated in Frankfurt and transported directly to Switzerland in cooperation with Dachser European Logistics, Dachser's land transport division. Furthermore, Dachser offers its own weekly charter services for selected routes to America and Asia. We try to find a solution for each customer that meets his or her requirements.
Air freight rates have risen sharply during the crisis. What does that mean for me as a shipper?
Samuel Haller: The price increase requires early interaction with the logistics service provider. In cooperation with the shipper, the logistics service provider can then examine possible options - from cheaper alternative flight routes to alternative transport solutions such as sea-air, truck, rail or ocean freight. As a result, an increasing number of shippers are opting for groupage container transports for the first time. Here, Dachser offers a
global network in combination with European Logistics for pre-carriage and onward carriage, including train connections to China.
In many EU countries there are already massive restrictions on economic life again. Will this lead to delays in deliveries to / collection from customers?
Urs Häner: Our network is 100 percent efficient. However, it does happen that we are faced with closed doors when the shipment is delivered because the recipients have redefined their delivery windows due to the pandemic. In the spring, temporary controls were introduced at many inner-European borders. This resulted in kilometer-long traffic jams and delays in supply chains.
What measures has Dachser taken in case there are more border controls and longer downtimes in Switzerland-EU traffic again?
Urs Häner: During the first two days of border closure, there were delays. However, I would like to note that the Swiss and German customs authorities worked very well together to reduce congestion. If border closures occur again, we will re-cycle the schedule with a longer border stop. This will lead to earlier departure times and requires prior coordination with the shippers.
So I have to allow for longer transit times for truck shipments, but also for overseas shipments (Logistics Lead Time Planning)?
Urs Häner: Yes, that is recommended. However, our European network has also proven to be absolutely reliable and
efficient.
Samuel Haller: For ocean freight, shippers must indeed expect longer transport times. In addition to a shortage of empty containers, cancellations of ship sailings (blank sailings) and capacity bottlenecks in some ports, e.g. in the USA, as well as corona-related
Delays in customs and port clearance currently lead to disruptions in the transport chain. It is important here that shippers provide the logistics service provider with the most accurate volume forecasts possible at an early stage so that appropriate planning, capacity assurance and booking can be carried out.
can be carried out by the latter. So-called backup carrier models to ensure punctual delivery are also available. It should be noted that there is currently no absolute loading guarantee with the shipping companies and so-called rollovers, a postponement to the next departure, cannot be completely ruled out. Accordingly, shippers should build time buffers into their planning and booking in order to be on the "safe side". A "just in sequence" approach is definitely not advisable in the current phase.
How do I get transparent real-time information in case of delays in the lead time to the port of shipment, loading at the port, transshipment problems or other travel delays in Asian traffic (supply chain visibility)?
Samuel Haller: Dachser provides corresponding information on its Track & Trace platform eLogistics, which is available to customers
can be viewed at any time. In the event of foreseeable delays, customers are proactively informed by our Customer Service. Sea freight rates have risen sharply in recent months.
Will this trend continue in 2021?
Samuel Haller: We expect ocean freight rates to remain at a high level or to increase further. For example, the
Shanghai Container Freight Index SCFI as of before Christmas over 160 percent higher than a year ago. However, price is currently not the issue, but the availability of equipment/capacity. How the situation will develop after the Chinese New Year is still uncertain. But shippers can assume that it will not calm down immediately.
Our supply chain management has mastered all problems well so far. Would a detailed analysis of the risks in our supply chain ecosystem in cooperation with a logistics service provider still be worthwhile?
Samuel Haller: Absolutely. Our experience is that such analyses, carried out in partnership and in an interdisciplinary manner with the customer, offer opportunities for supply chain optimization and create sustainable added value.
More information: Dachser Spedition AG
