InfoMail January 2017

Sea freight: Asia extremely tight, Air freight: China imports, ADSp: Changes 2017

Ladies and Gentlemen,

Sea freight: Asia extremely tight

When the factories in China close for the local New Year’s holiday, every year the greatest mass migration on Earth begins. Prior to this there will be congestion on the oceans of the world. These weeks are characterized by full ships. This time, even more so.

Both imports and exports on the routes from and to Asia are heavily over booked. But why is the bottleneck greater now than normally?

Lack of capacity following the Hanjin bankruptcy is making itself felt. Every week between the Far East and Europe there is a shortfall of approximately 15,000 TEU (20 foot units) in each direction. Demand must find room on the remaining shipping lines.

The expansion of the Panama Canal is displacing the area of activity of the worldwide container fleet. Previously Panamax ships <5.000 TEU passed through the locks. Now Neo-Panamax freighters >12,000 TEU can choose the route. As a result smaller ships are no longer wanted, and are taken out of service and scrapped. Larger ships are diverted from the Asia trade. Shipping companies prefer to employ freight capacity on more lucrative routes.

Void / blank Sailings make the situation more acute. And naturally demand increases during these days. Imports and exports must begin their trips on time. In this way limited capacity combine with increased demand. Particularly in the case of imports at the time of the New Year rates have increased by leaps and bounds. The guiding motto is reserve in advance and guarantee space in a timely manner.

Air freight: China imports
Air freight from the Far East was going full bore before Christmas – with correspondingly expensive spot rates. It’s the same thing every year...the high level continues. As does the increased level of rates from China and Hong Kong in particular.

ADSp: Changes 2017
Previously the hauling industry and forwarding did not share common ground. The Associations developed new general terms of business independently of one another. As of the New Year, a joint regulation has come into effect.

TheADSp 2017 (German Freight Forwarders’ Standard Terms and Conditions) anticipate above all the increase of the liability limits the limitation of the liability of the client, as well as the details of the definition of “goods of value”.

We will gladly keep you further informed
Your SENATOR INTERNATIONAL Team