+++ ALWAYS UP TO DATE WEEK 37 +++

Regular information about current developments and our services

In the following you get a new overview of the current market situation.

AIR FREIGHT

In the direction of North America, the capacities of the SENATOR Atlantic Bridge remain at a high level. In some cases the capacities are already fully booked 5 to 6 days before departure. For South Africa there is a moderate booking situation on the SENATOR Africa Bridge.

Following the successful launch of the SENATOR Asia Bridge in July 2020, SENATOR INTERNATIONAL has now developed an Air-Sea solution from the HUB in Singapore as an extension: goods can be transported directly from Singapore by sea to Sydney, Melbourne and Perth in Australia.

OCEAN FREIGHT

The Golden Week in China, which will take place from October 1st to 7th, 2020, is expected to result in various ship cancellations between Europe and Asia in calendar weeks 45 / 46. Many shipping alliances have restricted ship capacity in the direction of Europe (headhaul) for weeks 40 to 44. This is a reaction to the lower demand due to the public holiday.

On the route to and from India, the COVID-19 pandemic continues to create a tense situation. Delays are still to be expected. Full and overbooked ships are expected for exports from India. There are also considerable bottlenecks in the availability of containers. Many shipowners are raising rates or imposing surcharges, and spot rates are rising dramatically. Experts expect this situation to continue for some time (source: Alphaline Newsletter).

In Canada, after the long, strike-induced closure of the port of Montreal, the three ports of Saint John, Halifax and Montreal are still experiencing a considerable backlog. After many containers were recently diverted to the port of Halifax, there are delays in transportation to Montreal and Toronto. This situation should be taken into account for all shipments via these three ports.

RAIL FREIGHT

The high demand for transport from China to Europe has established additional routes on the New Silk Road. As an alternative to the traditional route via the Polish-Belarusian border, the route via Kaliningrad (Russia) has proved to be a successful alternative in 2020. Kaliningrad is the Russian enclave between Poland and Lithuania.

Thanks to its seaport on the Baltic Sea, there is also a direct sea connection option for onward transport, for example to Northern Europe (Sweden, Finland, etc.) or directly to Hamburg or Rotterdam.
The advantage of this route: instead of a transit time between 18 to 22 days, the transport can be completed in 10 to 13 days, as the bottleneck between Poland and Belarus is bypassed here.

CURRENT SITUATION WORLDWIDE

CHINA

Despite the pandemic, China's status as the world champion exporter has been further consolidated. The data from August 2020 showed that medical products and electronic items in particular are in high demand worldwide. 

In August, for the fifth month in a row, the USA were the largest buyer of Chinese goods. Despite talks about decoupling the world's two largest economies, the flow of goods from China to the USA remains consistently high (source: South China Morning Post). 

In shipping traffic between China and the U.S., the cost of transporting goods from Shanghai to the U.S. West Coast is as high as it was last in 2009, the reason given being that demand exceeds available capacity. According to the Shanghai Shipping Exchange (SSE), between May and August 2020, costs rose to US$3,639 per 40-foot container (FEU).

INDIA

The COVID-19 pandemic continues to have a severe impact on the subcontinent. Despite the high number of new infections, state regulations in various states have been relaxed and adapted to the respective infection level. On September 1st, 2020, the government allowed many facilitations, including the resumption of public transportation and interstate travel.

The situation from/to India remains difficult for both air and sea freight. In both segments, the volume of exports has increased, while the volume of imports is changing only slowly. Current forecasts assume that the situation in ocean freight could remain critical until February 2021.

USA

United Airlines has announced to cut about 16,000 jobs due to the economic losses caused by COVID-19. The cargo division is largely unaffected by this. According to the company, less than 50 jobs in this segment are under scrutiny because airfreight has been showing high capacity utilization for months (source: freightwaves.com).the ports of South Louisiana. It can be assumed that the closure of other ports could follow, especially in Texas, Alabama and Florida.

With SENATOR INTERNATIONAL you stay up to date


 

We use cookies to enable you to make the best possible use of our website and to improve our communication with you. Make your personal preference here:

Required cookies help to make a website usable by enabling basic functions such as page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

These cookies are used to allow functions of the website that enable you to use the website as conveniently as possible and tailored to your interests. Furthermore, the analysis of user behaviour also helps us to continuously improve the quality of our website.