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

Regular information about current developments and our services

Dear Sir or Madam,

What is currently shaping the air freight market? What about sea freight? What about the rail connection with China? Read more.

AIR FREIGHT

Demand for Export USA is still in full swing. Passenger planes are still grounded in many places. Flight frequencies are reduced or non-existent. The result: Hardly any free capacity as a whole. Utilization on the "SAB" SENATOR Atlantic Bridge is correspondingly high.

Australia is served with a special product: Air-Sea from Frankfurt via Singapore by air freight with forwarding by sea freight to Sydney. “SAB” SENATOR Asia Bridge is a good solution for everything that is transported “down under” faster than pure sea freight and cheaper than pure air freight. Strikes in Sydney Harbour are creating a backlog. The situation is only slowly easing. Delays are still to be expected. Transit times by ship from Singapore are expected to return to normal by November.

Air freight to and fromChina remains volatile during the peak season. Here again: Capacity bottlenecks. Demand is particularly high for imports from China to Europe, the USA, and South America.

OCEAN FREIGHT

The strike in Sydney Harbour has meanwhile also had an impact on transport operations to New Zealand. The OOCL shipping company continues to have a booking stop for Sydney. All other Australian ports are being called. New Zealand is suspended until further notice. Several shipowners introduced an overload surcharge for Sydney from 15.10.2020. MSC also applies the surcharge to Melbourne and Brisbane.

Import traffic from Asia to Europe is strongly affected by increased demand. At the same time, shipping companies prefer to use empty container equipment in Asia on the route to North America. Significantly higher rates are currently being achieved there. And even there, demand exceeds available capacity. Container and ship space are equally scarce. Delays are the result and are expected to continue in the coming weeks. Early booking is highly recommended.

The CMA CGM JACQUES SAADE is the first container ship in the world to run on liquid natural gas (LNG) – capacity: > 23,000 TEU (20' containers). A rather theoretical measurand. The practical benefit: Emissions are well below conventional fuels. Last week, the ship left Singapore with 20,723 TEU. A world record. Never before have so many TEU been loaded onto a single ship.

Reefers (refrigerated containers) are in great demand. The booking situation, especially in Asia, is very tense. The shipping company ONE is now announcing PSS (Peak Season Surcharge) for reefers amounting to 300 USD/TEU ex Northern Europe. More shipping companies are likely to follow.

Utilization is currently high on routes to Canada and the USA. Some destinations are already booked out 1-2 weeks in advance. The trading volume on trade is increasing and will remain at a high level for the time being. This also applies to Mexico.

London Gateway Port announces that due to various factors ranging from bad weather, additional Covid-19 measures to significantly increased cargo volumes, handling will be delayed. The port reports congestion.

RAIL FREIGHT

Rail to and from China has established itself as a fast and efficient means of transport for Europe and especially for Germany. But currently, delays are noticeable. Why now? Increased demand for Golden Week and a lack of equipment in China are causing delays. All departure train stations in China are affected. Delays vary between 3 and 7 days depending on the place of departure. The situation is currently coming to a head. Trains are fully booked for the next 2-3 weeks. To book at short notice worked well so far. For the foreseeable future, patience is required - and longer-term planning.

CURRENT SITUATION WORLDWIDE

CHINA

In Qingdao, some COVID-19 infections have been confirmed after Golden Week. Over 11 million residents were tested. Result: No more cases. At the same time, the city administration introduced strict checks for people arriving from other cities. Truck traffic has also been affected. Transports in the Qingdao area are delayed by 1 to 2 days.

According to local authorities, China's economy recovered well in the third quarter of 2020. Accordingly, the gross domestic product (GDP) grew by 4.9% compared to the same period of the previous year. International experts are sceptical of this number. They criticize the fact that local governments often pass on embellished data to Beijing. In most countries, including Germany, the actual value added is measured when calculating GDP. In China, on the other hand, measurement is based on input – and the government largely determines this input itself in the form of state investments (source: handelsblatt.com).

USA

Airlines are only recovering very slowly from the consequences of the corona crisis. America's aviation industry expects to lose an average of USD 5–6 billion per month in 2021. So far, around 40 airlines have had to file for bankruptcy or take other measures.

For Ocean Freight, rates and volumes increased in the third quarter. Prices are now stabilizing again. The average weekly load in trade between Asia and North America in calendar week 42 alone was 530,000 TEU. Record level on the transpacific route.

SENATOR INTERNATIONAL keeps you up to date

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