CBP Port Operations Normal, but Air Cargo Facing Severe Disruptions From COVID-19 Response

CBP port operations remain unaffected by the response to the COVID-19 pandemic, with commercial traffic remaining steady and cargo flows near normal levels, CBP said on calls held March 19 and 20. But the agency does expect a slowdown in Detroit and Laredo, according to a summary of the March 19 call emailed by the National Customs Brokers & Forwarders Association of America, and the number of trucks crossing the border in San Diego is down 2% to 5% over the past couple of days, CBP’s San Diego field office said on a call March 20.

CBP reiterated that the closure of the northern border to non-essential travel won’t apply to cargo, and said the newly announced closure of the southern border won’t put restrictions on trade either. “Cargo is considered essential and therefore should not be subjected to additional screenings or potential slowdowns,” the agency said, according to the NCBFAA. Federal Register notices on the travel bans for the northern and southern borders say people crossing the border to work in the U.S. are exempt from the prohibition.

CBP is not planning any reductions in staffing at the border with Canada, “though as many locations are operating under extended hours or are 24/7, it may be appropriate to reduce to core hours to utilize resources more strategically,” CBP said, as relayed by the NCBFAA. Likewise, CBP San Diego said it plans to continue normal operations, including hours and the number of lanes open at its land ports of entry. There has been an uptick in cases of COVID-19 among CBP personnel -- 30 officers are now in quarantine -- and as “a reduction of staff at ports becomes significant, ports have their own contingency plans,” CBP said, according to the NCBFAA.

Because of the rapid and massive reduction in passenger flights, companies that need to receive air cargo shipments are facing higher prices and delays, according to UPS logistics experts, speaking to members of the trade community March 20.

Some carriers have cut more than 96% of their passenger flights, UPS Vice President of Procurement Vito Losurdo said. So UPS has been chartering airplanes, and not just 747 and 767 freighters. They have also chartered Boeing 777 passenger planes, the largest Boeing passenger plane, and fly with the seats empty and the cargo hold full.

Randy Stanley, UPS vice president for supply chain operations, said that companies should communicate with UPS which shipments are top priority, and as much as possible, forecast future demand. He said lots of companies are forecasting six weeks out. “That information is priceless,” he said.

For ocean shipments, UPS executives recommended booking early, because ocean shippers are canceling scheduled trips because they think the economic downturn is so severe. If they don't realize demand will be there, as Chinese factories ramp up, prices will go up because there won't be enough space to go around.