+++ ALWAYS UP TO DATE WEEK 44 +++

Regular information about developments worldwide

What is currently shaping the market for air freight? What for sea freight? What on the rail connection with China? You can read interesting facts here.

AIR FREIGHT 

The market situation remains tense worldwide. In general, there are still capacity bottlenecks between Europe and the USA. Free seats are scarce and rates are at a high level. In addition, rising kerosene prices are resulting in higher fuel surcharges. This also has an impact on the overall price level.

In the direction of Latin and South America, SENATOR INTERNATIONAL offers strong options via its Miami (MIA) hub. Cargo aircraft operate twice a week from Frankfurt (FRA) to MIA. From there, there are regular connections to Antofagasta (ANF), Bogota (BOG), Buenos Aires (EZE), São Paulo (GRU and VCP), Lima (LIM) and Santiago de Chile (SCL). Other Latin American destinations are also served upon request.

For exports and imports to/from China, the situation has changed little. Demand remains high. The scarce capacities again lead to a price increase.

At Frankfurt International Airport (FRA), the ground handling situation remains critical. The changed process handling in the import customs procedure continues to cause noticeable delays. For all shipments via FRA, this factor should definitely be factored in.

OCEAN FREIGHT   

The market situation is also consistently critical on the sea route. For exports from Europe to Asia, rates remain at a high level. Especially to the Far East. The same applies to the Middle East. Rate increases and surcharges (PSS = Peak Season Surcharge) are currently forecast for Australia/New Zealand and Africa. In contrast to the previous month, the cargo space situation has eased slightly. However, the ongoing congestion at many ports in Asia and North America continues to cause delays in schedules. The shipping company OOCL has suspended its services to Japan and Manila for the time being. Hapag Lloyd is also responding to the situation: from January 2022, several ports in Japan will no longer be called at. 

For imports from Asia to Europe, port congestion remains the biggest challenge. Supply chains will be interrupted, trade will be noticeably restricted. Rates remain at the recent high level. Due to high demand and capacity constraints, no significant price reduction is expected until the end of February 2022.

The picture is similar for exports from Europe to North America and Mexico: High rates, delays due to tight capacity. The Los Angeles-Long Beach ports remain a crucial bottleneck for all global trade. Currently, 66 ships are anchored. Now the ports are responding to the permanent congestion with an unprecedented move: starting Nov. 1, shipping lines will be charged an "emergency fee" of $100 per container. The fee will increase by an additional $100 daily if containers remain at the terminals for local delivery for nine days or more. This measure is intended to make room for previously waiting containers and speed up operations overall (source: container-news.com).

In the direction of Mexico, shipping company ONE is currently unable to offer departures on the AL4 service for operational reasons. To South America, demand remains high, especially to the West Coast. Short-term bookings are only possible with OOCL and MSC. All other operators report fully booked services until the end of November.

RAIL FREIGHT  

In exports from China to Europe, trains on the New Silk Road continue to be massively delayed. This basically affects all suppliers. Rates also remain high.

Things are looking much better for rail traffic to China: Available capacities at favorable rates. Transit times are also at a good level of around 20 days from Germany to the respective destination.

CURRENT SITUATION WORLDWIDE

BRAZIL   

For Air Freight, import bottlenecks from Europe have recovered slightly. However, rates remain high.  To and from Asia, however, the market situation remains critical. For exports to LATAM, delays of 1 - 2 weeks have to be taken into account, depending on the destination.

For Ocean Freight, the discrepancy between available capacity and demand also continues to set the tone. Both to and from Europe as well as to and from Asia, free space is in absolute short supply. For exports to the neighboring LATAM region, delays should also be taken into account and bookings should be made as far in advance as possible. 

CHINA 

In China, factory activity declined for the second month in a row. This is due to high raw material prices and weak domestic demand. This development points to strong economic unrest in the last quarter of 2021. China's extended manufacturing sector is thus in reverse gear (source: scmp.com).

MEXICO  

For Air Freight, capacity shortages dominate the picture. China is particularly affected, especially Shanghai Pudong (PVG). For exports from Europe, the "SAB" SENATOR Atlantic Bridge from Frankfurt (FRA) to Mexico City (MEX) offers an excellent option. The regular frequency with 3 flights per week provides more reliability for bookings.

For Ocean Freight, the demand for imports from China has increased again. Due to the market situation, bookings should be made at least 6 weeks in advance. For export from Europe to Mexico, seats are available at higher prices. On the other hand, the ships run more punctually here than on the transpacific route.

SOUTH AFRICA

For Air Cargo, passenger air traffic to South Africa is resuming more and more. Cape Town in particular is in focus. This could also provide more scope for air freight through additional hold capacity. 
In Road Freight traffic between South Africa and neighboring countries, border crossings continue to operate inefficiently. In some cases, delays of up to 4 days are to be expected.

USA   

For Air Freight, industry experts expect an expansion of transatlantic capacities. The reason: the lifting of the travel ban for air passengers between Europe and the USA, which will take effect in mid-November (source: theloadstar.com).

For Ocean Freight, the ports of Los Angeles and Long Beach are working doggedly to find solutions to reduce the backlog. Long Beach is now cooperating more with inland ports and rail operators. The move is intended to expedite the movement of containers out of the port. The agreement with the Utah Inland Port and rail operator Union Pacific involves transporting containers to Salt Lake City. From there, cargoes will be moved on by rail or truck to other destinations or regional distribution centers (source: theloadstar.com).

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