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Dive into the key recent market updates in schedules, services, and rates.
Deep-sea services:
- UWL has launched a new service that would leave from Ho Chi Minh City, which had a strong start of the year, to Seattle being the fastest one of its kind.
- Hapag-Lloyd and Zim team up to start a joint service between Turkey and the US east coast, where operations used to be irregular that will go live in May.
- Hapag-Lloyd established a new seasonal connection operating: Hamburg – Antwerp – St. John – Hamburg.
- The Ocean Alliance started the eighth Asia-US east coast loop via Panama Canal.
- CMA CGM introduced a new Singapore – Chennai – Colombo – Singapore service.
- In May, Allseas Global Logistics and Commodity Supplies will launch new services to Europe from Chittagong.
- The China Xpress service has been expanded to Qingdao, Shanghai, Foshan, and Nansha.
Short-sea and feeder services:
- From early June, CMA CGM’s fortnightly service will follow a port rotation: Pointe des Galets (Réunion) – Port Louis (Mauritius) – Pointe des Galets – Longoni (Mayotte) – Pointe des Galets.
- Pacific International Lines has commenced a weekly express service from Singapore to Indonesia
- ONE has launched its new Middle East-India-Mozambique service: Jebel Ali – Mundra – Maputo – Jebel Ali.
Rail services:
- Kombiverkehr has added a direct train link to Halmstad in southern Sweden from Lübeck in Germany
- Brittany Ferries has introduced a new rail freight motorway service between Cherbourg and Bayonne with new 21 Modalohr UIC wagons that make transportation of trailers easier.
- APM Terminals Mumbai has announced a service for shipping lines, inland container depots, and container freight stations operating upon customer requests.
Multimodal services:
- Nippon Express launches multimodal service going via China-Laos Railway.
- Hapag-Lloyd added a US East Coast stop at the Port of Virginia to its MGX service.
- Starting from May, the South China Railway Express will be extended to the port of Narvik in northern Norway.
- TopRail has established a record transit from Suzhou to Poti that takes only 22 days.
Routes:
- Rail players might have to start looking for alternative ways to omit Kazakhstan through Uzbekistan, and Turkmenistan. The reason for it is not only looming sanctions but the overloaded state of the route.
- Rail freight traffic between Finland and Russia will be over after the current contracts of VR Group come to an end, Although private companies can continue business to and from Russia even after it.
These are only several changes that occurred in more than 250 bn freight rates across 25 million routes. Stay tuned for the latest updates with MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations. Join to innovate.
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Since April 6th, container shipments out of China have decreased by 31%. The 14-day average import container dwell-time in Shanghai had increased by 144% to 8.3 days, while the export dwell-time had increased by 20% to six days.
The over-the-road traffic in Shanghai has also been severely impacted. The 14-day average of over-the-road and intermodal transport volume leaving Shanghai has decreased by 41% since March 12, while deliveries to Shanghai have decreased by 72%.
There has been no improvement at Shanghai Airport so far. Since March, capacity out of Shanghai has decreased by 40%, with load factors falling from 93 percent in March to 49 percent. The majority of export cargo diverted from Shanghai is being received at other significant airports, including Zhengzhou, Beijing, Guangzhou, and Shenzhen. Many airports have run out of cargo storage space, forcing them to hike storage fees or implement temporary cargo embargoes. Pallets are in short supply for loading export cargo onto flights.
In March, retail sales in China fell 3.5 percent year over year.
The first batch of companies from the automotive, semiconductor, consumer electronics, and pharmaceuticals industries went back to work on April 18. The list includes SAIC Motor Corp., Volkswagen, and Tesla's electric vehicle manufacturing. This could lead to a sharp rise in export freight.
While access to ports is severely constrained, and many shipments are delayed offshore on waiting vessels, industries have significant challenges in obtaining raw materials and components required to maintain production. There are an estimated 300 container ships and 500 bulk ships off the coast of China.
The longer China is kept out, the greater the impact on US supply chains will be. Despite recent backlog clearances, vessel wait times outside the ports of Los Angeles and Long Beach have begun to increase once more. At the twin ports, container dwell time has also been steadily increasing. Concerns about rising container dwell times at the ports of Los Angeles and Long Beach have prompted US officials to call on railroads to speed up their efforts to remove backlogs.
Analysts fear that when the backlog of products reaches U.S. ports, it would rekindle gridlock similar to last year when around 100 containerships became stranded in the ocean off the coastlines of Los Angeles and Long Beach.
The same ripple effect could become in Europe, Intra-Asia, and other destinations ex-China. The magnitude of that effect will depend on the duration of the lockdown in China.
Supply chain professionals are already looking for alternatives to China, and this tendency will continue. It won't happen overnight, and it won't happen in every business, but it's coming, and the recent lockdowns will just speed the process.
