As is well known and widely reported the Novel Coronavirus appears to be escalating and spreading beyond China. The loss of human life is tragic and we all hope that outbreak can be contained as soon as possible. Acknowledging the potential threats to the health and safety of our employees, we are taking all necessary precautions and accepting all governmental regulations and guidelines. The safety of our employees is our top priority. We therefore ask for your kind understanding on our limited in-office operations under this emergency situation.
Minimizing the impact on our customers is also a top priority. However, this is becoming increasingly difficult as some domestic transportation routes within China are shut down, factories remain closed over the extended Chinese New Year holiday and passenger flights to/from China uniformly cancelled.
The extraordinary situation we are faced with currently is heightened by Ocean carriers announcing “blank sailings” (an action that cancels a vessels intended departure, effectively changing the carriers schedules and reduces overall weekly market capacity). This action is due to both the Lunar New Year as well as the loss of production caused by the virus creating a temporary reduction in demand. These blank sailings have an impact beyond China due to the port rotation of each vessel. After February 10th as China ramps back up production, we therefore foresee problems due to the lack of ocean capacity along with vessel delays, both of which will undoubtedly impact the shipping needs of our clients.
The problems right now for the Supply Chain go beyond a simple projection of reduced capacity. The issue is three fold:
b) if there are any possibilities for airfreight the costs will be exorbitant due to supply and demand.
In view of the likelihood of these delays and disruption to the global supply chain and especially for clients in the Far East trade it is critical that all options are explored by our clients to source suppliers outside of China (and potentially other parts of Asia). With offices around the world we will be available to evaluate the short term logistic needs and try to minimize disruptions further downstream for end users and/or our client’s production lines.
We will do everything reasonably possible to help our clients during this difficult period and assure you of our closest attention. However, the outbreak of the Coronavirus was an unexpected event and the development impossible to foresee. By very definition, this is a Force Majeure. As such where contract terms are in place please be guided accordingly.
Dear valued customer:
The World Health Organization (WHO) has declared the new Coronavirus outbreak a public health emergency of international concern now.
More than 7700 cases have been confirmed in China. There have cases been reported now also in 18 other countries.
We would like to share the latest update on the spread of the coronavirus in the city of Wuhan, and our operational plans and guidelines in response to this crisis. We are monitoring the situation very closely to ensure the safety of our employees whilst working towards minimizing any possible impacts on our operations and our customers’ shipments.
Acknowledging the potential threats to the health and safety of our employees, we are taking all necessary precautions and preventive measures by accepting all governmental regulations and guidelines The safety of our employees is our top priority. We therefore ask for your kind understanding on our limited in-office operations under this emergency situation.
Holiday Extension of China Branch Offices
In accordance to the announcements of China State Council and Provincial Governments, as of the latest update on 31st January, JAS China and HKG offices will resume operation on the following dates:
Flexible Working Arrangement of China and Hong Kong on 3rd to 7th February
To scale down the number of staffs in office and reduce the spread of novel coronavirus in the community, we have planned work-from-home flexible arrangement for all offices during 3rd to 7th February.
During 3rd to 7th February, all China branches (including those which will commence operation on 10th February) will arrange skeleton staff team to work in office to support business operation, while the rest of the staff will work from home. In Hong Kong Branch, operation teams will be split into two teams and work on rotation basis, while Logistics team will remain full support on site.
Following the flexible working arrangement, Sales team members in China and Hong Kong will work from home with 100% connectivity to business mails and can be reached via mobile shall there be any urgent business enquiries from customers. All staffs have the connectivity to business mail, we will try our best endeavors to maintain our business service to make sure clients’ needs will be fulfilled in due course..
China Market Updates on Air and Ocean Operation
We are carefully monitoring the situation in regard to all carriers, terminals, customs, warehouse, trucking service and booking agents of cities where JAS offices are presented.
In Greater China (except Hubei province ports, including Wuhan), the majority of container operations, including those at the terminals, depots, and other facilities, continue to operate as usual over the Lunar New Year holiday period. For ports other than Hubei province ports, vessels are still maintaining their normal port calls and operations. New bookings to/from all ports in Hubei province are temporarily suspended, and our staff will continue to liaise with customers who have shipments already in progress to discuss the most appropriate course of action for these.
At time of writing, the majority of passenger airlines have suspended flights to and from China (mainland without Hong Kong) during February and March with further updates to follow during the weeks to come. The freighter carriers have cancelled several flights but will be operating on a special flight schedule after the extended Lunar New Year period. Until further notice, live animals (AVI) will no longer be accepted for carriage on routes to and from China (mainland).
Air and Ocean Carriers:
Both Air and Ocean Carriers continue to monitor the situation and assess the need for potential network capacity adjustments to cater for any short-term changes in demand out of China. We will update you as soon as information becomes available
Business Support for Clients
JAS China Sales team have closely communicated with clients during CNY holidays to identify their business needs during week of 3rd February, especially for clients with manufacturing sites in China. The team will continue to work both internally and externally to ensure clients’ requirement will be fulfilled.
For additional information, we ask you to please contact your local JAS Office.
JAS Worldwide Management