Infomail October 2017

Air freight: Full capacity, Train and truck: Full capacity, Ocean freight: Full capacity - not everywhere, Kuwait: Customs legislation, Beijing: Truck restrictions

Ladies and Gentlemen,

Air freight: Full capacity

Germany is running at top speed. The current situation in the most important trades lanes: No air freight space and waiting lists. This is reflected in the high demand in export. It is exactly the same in import, particularly from Asia.

In the winter flight schedule, capacity was removed on a wide variety of routes, or changed to a smaller airplane. Participants on the ground have been affected by the airlines’ bottlenecks for a long time already. Truckers in the Frankfurt hub need an especial amount of patience. Due to the long wait times, some feeder services have already adjusted their service. This makes the situation even worse.

And the airlines are starting to turn the tables. AirBridgeCargo is currently offering capacity via tender. The highest price gets the contract. Higher rates prevail. The situation is aggravated by a lack of personnel. It is becoming more difficult to get reliable information. At some airlines there is no one to pick up the telephone anymore. Peak Season meets rest optimized service providers.

Train and truck: Full capacity

Combination train providers on the routes to and from seaports are working at their capacity. The storm damages have not been completely taken care of yet. There is no guarantee for stabile train systems today. Overextended infrastructure meets increased demand.

A lack of drivers everywhere. While in the past many truck drivers were trained by the German Federal Armed Forces, private investment in the expensive driver license is not profitable today. The EU posting directive no longer allows foreign drivers to spend their rest times in the driver’s cab. Hotels are too expensive.

Many are looking for other fields of work. This profession is unattractive for young people. Deadline pressures and statutory provisions are not optimal for work life balance. Quick scheduling is hardly possible anymore. Everything is full.

Ocean freight: Full capacity - not everywhere

The situation is comparatively relaxed on board. The USA and Latin America west coast are offering sufficient space in the short term. Imports from Asia are at a good level again after the Golden Week, without excessive turbulence.

On the other hand, the ships on the east coast of Latin America are full. Hapag Lloyd and MSC report draught restrictions for Rio de Janeiro. Shipping companies, therefore, have limited capacity. The western ports in Europe, in particular, are developing bottlenecks: In Particular, “Congestion” in feeder services by inland waterway vessels. In the South, inland container yards in Munich, Ulm and Kornwestheim remain bottlenecks.

For exports from Europe to Asia, the Blank Sailings during the next two weeks after the Golden Week are causing a disruption. The ships that were pulled from service during the holidays in Asia due to the lack of freight are missing. Timely booking is also strongly recommended to South Africa. In addition, there are more laid up ships: Idle Fleet.

Port - port transport is not the problem below the line: As a point of fact, it is the pre- and onward carriage. For example, the rates of the road haulers are currently also rising in the USA. High demand meets sparse resources.

Kuweit: Customs legislation

The Kuwait customs authorities report that sea freight can, in the future, only arrive in and depart from the Emirates on pallets. In the case of non-compliance, they are threatening fines and additional costs.

Beijing: Truck restrictions

In the future, trucks of certain classes will not be able to drive in the inner city of the capital. Trucks with local registrations will only be able to drive outside of the 5th Circle Road, and those with with foreign registrations only outside of the 6th Circle Road.

This will first and foremost affect older models with poor emission ratings. The government is implementing measures to improve environmental protection. This reduces available freight space.

We will be glad to keep you informed.
Your SENATOR INTERNATIONAL Team