What is currently shaping the air freight market? What about sea freight? What about the rail connection with China? Read more.
New coronavirus cases have been reported at some airports in China. Therefore, local authorities and airlines imposed stricter regulations. These will have a strong impact on air exports from China, especially on capacities, handling times and local transports.
At major airports in China Beijing (PEK), Zhengzhou (CGO) and Pudong (PVG) there are stricter procedures for handling and local truck transports. The result: delays. In addition, problems with on-board and ground staff are causing flights to be cancelled at short notice.
In the direction to the USA, demand remains high. Project shipments are increasing. Therefore, SENATOR INTERNATIONAL continues to focus on additional cargo capacities in this region. Here you will find the SENATOR Atlantic Bridge ("SAB") flight schedule.
The demand for South America has increased massively and rates have risen enormously. The capacity situation remains very tight.
On 10th August 2021, a positive covid case was detected at the world's third largest container port at Ningbo Meishan Island International Container Terminal (MSICT). Local authorities immediately suspended all container services at this terminal until further notice. Since then, the affected port area may neither be entered nor approached. Delays and disruptions are the result, and delivery bottlenecks are possible.
The ports of Shanghai and Ningbo are still struggling with the effects of last month's typhoon In-Fa. Currently, about 140 container ships are waiting outside both ports.
The situation also remains tense on all other routes: Ships are also jamming in front of important ports, there are delays and rates remain at a high level. There is still a lack of equipment.
The volume of traffic on the New Silk Road is constantly increasing. In the first half of 2021, 7,323 trains ran between China and Europe, according to Customs China. In 2020, there were total 12,406 trains in the year (source: railfreight.com).
Westbound transit times are severely affected. The reasons: too much goods and increasingly scarce equipment. The transit times are currently 22 days, 16-18 days are usual.
Trains from the Henan provincial region are massively delayed, heavy storms, severe flooding and sometimes total shutdowns at terminals are the cause. The backlog is expected to be cleared by the end of week 33. The timetable is expected to be resumed after that, running time approx. 20 days.
CURRENT SITUATION WORLDWIDE
The immunisation of the country is progressing, more than 54% of the population have already received the 1st vaccination. Politically, the country continues to be considered unstable, with elections in 2022 slowing economic growth.
Air freight rates are generally still high - especially for exports. Insufficient capacities for routes to Latin America are the cause.
Currently, Ocean Freight rates are rising on all important routes in Europe and Asia. Exports from Brazil to America continue to lack capacity and sufficient equipment; reefer containers in particular are hardly available. Freight rates for express shipments are highly volatile.
The suspension of all container services at a seaport terminal in Ningbo is also leading to restrictions at Chinese airports. Shanghai Pudong International Airport (PVG) is experiencing increased flight delays and cancellations, longer ground times and a lack of ground staff to load and unload aircraft. Tianjin Airport (TSN) has been closed due to a new covid case and all TCS cargo operations have been suspended. General cargo is still being handled at the CA terminal, but operations are slow.
Ocean Freight is still suffering badly from a lack of space, and freight rates continue to rise. For shipments from Europe to Mexico we recommend the SENATOR Consol service, transit time 30 days.
With the suspension of all container services at an important seaport terminal in Ningbo, transports from Asia to Mexico are proving difficult. As an alternative, use our Consol service from Shanghai.
Same situation from LATAM to Mexico, especially from Brazil. In September there is hardly any prospect of bookings, only in October the situation is more relaxed.
A new airfreight service from Japan to Guadalajara (GDL) has recently been launched and is used mainly by the automotive industry in the central region of the country.
Anarchic conditions plunged the country into a deep economic crisis last month. The riots were accompanied by looting and blockades of important road links. However, food and fuel supply chains were not permanently disrupted, although there were brief supply shortages (source: www.gtai.de).
In the meantime, South African seaports are operating normally again, but a small backlog is still being experienced. Nevertheless, Ocean Freight continues to suffer from lack of equipment, delayed departures and lack of space. Book as early as possible.
President Joe Biden has unveiled a total 2,25 billion USD stimulus package, to be implemented over the next eight years. 621 billion dollars is to flow into the transport infrastructure. The road network, bridges, public transport and the rail network are to be modernised. The largest share will be spent on promoting e-mobility (source: www.auto-motor-und-sport.de).
For several years, recruiting and retaining truck drivers has been a growing problem in the USA, and the shortage of drivers is the biggest problem in the trucking industry, even in pandemic times.
Port terminals continue to be heavily congested, with long waiting times due to berth congestion, import hold-ups and manpower shortages.
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