COVID - Shipping update South America

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Apr 17, 2020
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I just wanted to provide a brief update on shipping, at present it is becoming quite difficult for a number of reasons,

  • Restrictions on individual movement - this is limiting the ability of people in South America to deliver their vehicles to ports, and to collect them, this also applies when the vehicles arrive in Europe, people may not able to cross from one country to another and again they are finding that they cannot collect them. (they can be transported if required or left at the port or warehouse but incur costs - Most EU ports are open and allowing drop off and collections)
  • Restrictions implemented by warehouses or ports - some warehouses and port are looking to restrict the interaction of individuals and staff, and we have seen some state that they will only accept cargo delivered by transporter, and some warehouses have either closed, or are not allowing the clients to be present during loading
  • lack of demand – globally, due to supply chain issues, and factories closing down, there is a knock-on effect to the shipping industry especially Roll on Roll Off whereby the carriers are actively rerouting and cancelling vessels where there is a significant drop in demand, unfortunately, in some cases the carriers will only provide a days notice before loading of cancelling the port call and this causes a significant headache. We have seen this in particular from Mexico to Europe, Argentina to the USA, and a reduction of sailings between North America and Europe, and we expect this to spread further in the coming weeks.

So generally, if you are looking to ship be prepared for unexpected changes, frustrations and possibly additional costs, whether it be at the port of load or at the destination.
It is really important, that you do check that you can physically get to the port of departure, and keep checking on this, as the situation is changing frequently.

If your shipment is planned in the next 30 days make sure you are in contact with your local agent and are receiving real-time updates as to the local situation.

If your shipment is in 30 days or more, at this time, quite honestly, nobody knows, the local situation could change that could prevent you getting to the port, or could be lifted, or there could be changes to the sailing schedules.

It's important to note that, Shipping is an essential service for all countries, and therefore it is continuing however, it's where individuals need interaction, shipping of non-essential items, or items that are seeing a lack of demand is where the problems are occurring.

Specific routes (RORO):
• Mexico to Europe - up until a couple of weeks back this was generally fine, now we are experiencing more cancellations of European port calls,
• Argentina and Uruguay to Europe - these vessels are still sailing we are booking and we are shipping, if you are already in the country it is easier, but if you are outside then it is more difficult. Imports to Argentina are problematic and not recommended until local restrictions are lifted
• Chile to EU & USA - local restrictions have made getting to San Antonio for RORO more difficult, and currently we are seeing no further scheduled services on the carrier's websites (these were one per month), last month sailing did go-ahead, however, the carrier subsequent to loading announced that the vessel would not continue to Panama and the USA, therefore all cargo destined for the USA and Europe has to transship via Brazil, with a month's delay.
• Colombia - it seems most of those who are looking to ship from Colombia have already done so, or are now on lockdown, once the lockdown has been lifted, due to Cartagena being a major port, we would expect regular services to both the USA and Europe.
• Panama – Colombia - at present it can be difficult shipping from Panama, since places like the DIJ closed due to lockdown, direct Roll on Roll Off services South bound have been omitted from recent schedules and we do not know when they will be back on, (northbound Colombia to Panama and the USA, lots of services as usual)
• Canada / USA – Europe - some carriers have reduced the number of sailings they have, and there has been delays, but generally at present, things are going ok
• EU - CAN USA - services have been reduced slightly, but shipments are still going out, the main problem is for non-residents being able to travel to North America and the present time/
• Argentina to the USA - RORO a number of services have been cancelled currently 2 ships sailing in May to Houston and Veracruz, after that nothing presently scheduled

for container shipping - services from Montevideo, the USA and Colombia etc, are still proceeding although there have been changes to schedules etc and subject to local restrictions on movement.
 
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Updates:

Colombia -
Lock down has been extended until 11/05, however if you are looking to ship, you should make your booking for after this date, and pass on documents to your FF to start working on, so that you can ship as soon as the lock down has been lifted.

West USA - Most RORO vessels have been cancelled, just one currently scheduled on the 06/05 - More could be added later but those that were scheduled have been dropped

Mexico - We normally have 3 carriers from Mexico to the EU, two had starting dropping EU port calls, with one left which we were booking, they have also now started dropping port calls. Unfortunately this is done at the very last minute, i today for a sailing in few days time, when customs has already been completed... So if you are shipping RORO be prepared for last minute changes, cancellations, and possibly additional costs..
 
Argentina to the USA - RORO a number of services have been cancelled currently 2 ships sailing in May to Houston and Veracruz, after that nothing presently scheduled