● Ships are queueing and the wait time keeps growing. Moreover, trucking restrictions are pouring fuel on the fire: no cargo from outside the restricted area can enter Shenzhen. Issues regarding staff availability are also growing due to the fact that people have been ordered to work from home. This results in delays in communication and operations. Warehouses and container freight stations will be closed until at least Sunday. Luckily, the latest updates have reported that the Chinese government will partially lift lockdown in the wake of the collective fear of supply chain disruption.
● However, big companies are still concerned and worried that the impact of the measures will be painful. Hapag-Lloyd is closely monitoring Yantian vessels and expects the COVID crisis to significantly damage its operations in the region.
● All these restrictions are taking a toll on spot rates. The uncertainty about how the situation will unfold has resulted in a rate decline. China - Northern Europe rates have dropped by 4% to 5% with an average price of $12,783. North European exporters have their fingers crossed that rates will fall back to their pre-crisis $2 000 per 40ft. Anticipating the decrease in demand, the 2M alliance is planning more void sailings in the coming month.
● Rates for the US west coast down 7%, to $10,154 per 40ft, and to east coast ports falling by 5%, to $12,276. As for transatlantic, rates were stable at an average of $6 626 per 40ft.
● The trucking industry is under the pressure not only in China. The economic pressure including fuel prices sets it for more turbulence in the US. In the UK, smaller hauliers are calling for the government to take measures and enforce a fixed surcharge rate on customers. Their costs for March are destined to climb 35%. The government's help could ease some of the strain on them. UK haulage companies are implementing emergency fuel surcharges of up to 10% to cover escalating fuel costs.
● One of the factors contributing to the growing prices is a conflict in Ukraine. All modes are under pressure. Seaborne trade with Russia has dropped by 58% resulting in empty store shelves. Rail freight from Russia and Belarus has been halted. Re-routed air cargo is influencing traffic between Europe and Asia. Rail companies have started applying energy surcharges as they can no longer cover the costs due to the risen prices.
● Sustainability comes in handy when it is needed to collect additional surcharges. Ports of LA and Long Beach will begin collecting a rate of $10 per TEU on loaded import and export containers hauled by drayage trucks to encourage the changeover to cleaner trucks.
● While the suspension of operations in Russia and Belarus has hit the industry, carries still have found the alternatives to redeploy intra-Europe tonnage to the region with low capacity, transatlantic routes. For example, MSC launched a new weekly service from the Baltic Sea to US east coast ports. Other companies followed suit. The tension also does not prevent ambitious carriers from ordering new vessels and forwarding fixed long-term charters. CMA CGM has ordered four 7,300 teu LNG-powered ships. Hapag-Lloyd, the 5th ranked by capacity, will take over six 13,806 teu neo panamax ships. Expansion in the number of reefer containers is also taking place. ONE will add 6,500 new reefers to meet the demand for containerized reefer trade, which is expected to continue to grow in 2022.
● Alongside ocean carriers, rail freight forwarders are looking for alternative ways for the China-Europe route that has seen a 40% drop in bookings and its frequency reduced. The Silk Road freight train from Vietnam has been suspended. Among the considered destinations in the southern corridors largely through Kazakhstan, Azerbaijan, Georgia, and Turkey via the Caspian Sea, or Romania via the Black Sea. However, they have long transit times which may result in congestion. Mediterranean ports can be an option, for them, the current situation is the opportunity to come into the spotlight.
● The growing barge delays are forcing some of the ports to call for a task force. The one at the Port of Antwerp will work on ensuring better use of the limited quay capacity.
● New service alert: MSC will operate a new direct service connecting the Port of Gothenburg in the Baltic Sea to the US with a shorter transit time.
#MAXMODAL #multimodalnetwork #EU #Asia #digitalsupplychain #digitallogistics #ratemanagement #logisticsnews #logisticsandsupplychain #supplychain #sustainability #decarbonisation #containers #containertransportation #containertransport
Hi，
This is Joy from First-trans . First-trans Logistics is a company with international multimodel transport company.
What can we do for u？
We provide rail/air/ truck /multimodel transport service, also customs clearance ,door delivery , warehouse service ,etc. （From China to Europe,Russia, Central Asia ect.）
Who are the big companies that we cooperate with?
Our cooperative customers include Midea, Huawei and Green, you can trust us unconditionally.
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E-mail: Cottonee19910522@gmail.com
WhatsApp：+86 13548711273
Services that called St. Peterburg iwere operated by COSCO , Maersk , MSC and Samskip , Containerships (CMA CGM), Hapag-Lloyd and X-Press Feeders, stopped all their connections. The number of visits is likely to go down even further when all vessels that were already on their way have discharged their cargoes. Not all carriers are likely to withdraw all their services, as some , like Unifeeder, continues to transport containers . Fewer ships are also visiting Russia’s Far East ports, but the reduction there is much more limited. According to HMM, however, volumes in this trade have declined so much that it is no longer worth calling there. Therefore, it will stop serving Vostochny and Vladivostok (via slots form FESCO). APM Terminals has decided to sell its shares in Russian port operator Global Ports, in which it ultimately holds 30.75% and which it bought in 2012 for USD 173 million. Global ports is involved in four Russian container terminals, FCT and PLP in St. Petersburg, ULCT and Vostochny Container Terminal, and is a partner in Multi-Link Terminals, which operates facilities in the Finnish ports of Kotka and Helsinki.There are two more European terminal operators involved in Russia. These are Eurogate, in Ust-Luga Container Terminal, and MSC’s Terminal Investment Limited, in CTSP . They have so far not disclosed plans for their Russia possessions yet.
First-trans Logistics is a company with international multimodel transport company.
We provide rail/air/ truck /multimodel transport service, also customs clearance ,door delivery , warehouse service ,etc. （From China to Europe,Russia, Belarus,Central Asia ect .）
Good Day Joe, tell me, do you need partners in Russia and Belarus? I represent railway company in Russia. Have you already made tariffs in Maxmodal?
Hi Joy, have you already published your tariffs from China to EU and Russia?
Providers’ freight rates have been updated on routes China- Europe, Japan, and the Middle East. Please sign in/up to check how competitive your rates are, click «book» to plan your shipment ahead, or push a «chat» in case of any questions. MAXMODAL is a neutral digital multimodal network aimed to automate your operations and boost your sales.
Chinese ports are under lockdown again and with the military conflict between Russia and Ukraine, the market is entering another coil of uncertainty and turbulence.
● If it seems like the container market has already seen it all, there is another turmoil to get ready for. Container movement and freight rates quickly reacted to the consequences of the Russian-Ukrainian conflict, and now they are set to react to the lockdown in China that was imposed in 19 provinces. Experts predict that a week-long shutdown of Shenzhen can cause far more disruptions than the notorious Suez crisis because the demand is expected to keep growing. There are also fears that China’s strategy of Covid elimination will be extended to other mainland cities. Due to the reduction in workforces as people are ordered to stay home and limited truck availability, ships are starting to queue at the major Chinese ports. Knowing how they are interconnected with the rest of the international network, the lockdown is going to affect major directions. In particular, India has already reacted. Indian shipping lines are struggling with labor shortages, slowing operations, and vessel turnaround as well as with container shortages because of the lockdown in China. If the situation does not improve, more congestion will be on the way. The importance of Asian presence is visible not only when it comes to congestion. It is reported that Asian shipowners have become the dominant force in global shipping.
● The disruptions caused by Covid and the military conflict are already making Europe to US trade run behind. Sanctioned Russian transhipment cargo from Asia has nowhere to go and keeps piling up. Meanwhile, a shortage of empty containers in Europe results in less equipment available for US exports and carriers that are unable to fill their ships.
● In order to provide sufficient support in medical products, food supplies, and so on for Ukrainian refugees, the terminal in Odesa has started releasing import containers for consignees. Despite the container crisis, many inland storage facilities in Ukraine are offering free storage and cargo-related operations to support civilian needs. While the ocean sector remains highly disrupted, Ukrainian railways show signs of becoming a key player in increasing its exports to the EU.
● More restrictions have been placed on the import from Russia to the US following Russia’s ban to export over 200 products including medical and tech equipment. The US is now prohibiting imports of alcohol, seafood and non-industrial diamonds from Russia. It is also not allowed to export luxury goods to Russia. The measures are destined to pave a way for higher tariffs on a wide range of goods. The EU adds up to sanctions by putting an import ban on Russian steel and iron, a ban on investments in oil companies and the energy sector, and restrictions on the export of luxury items including cars with a value of more than 50,000 euros. In the meantime, HMM suspended its services to the Far East of Russia, although the company has stated that it is due to the market conditions. Market conditions are indeed perplexed with a variety of challenges. Poor schedule reliability and continued delays are fueling the trend of companies starting to charter ships by themselves.
● The crisis is going to be visible across all transportation modes and European hauliers are beginning to worry. In addition to the problem of high diesel prices, another one has appeared. Many automotive components are manufactured in Ukraine and supply disruption will affect the production of trucks. At the same time, the aftermaths of the conflict spill over rail freight traffic between Europe and Vietnam has been suspended for the time being. The crippling increase of costs and drops in sales are happening in the US too, the agricultural sector has become the one that has felt them most prominently.
● The unprecedented chaos in global fuel prices has forced big players to take matters into their hands. MSC is going to review its fuel surcharges fortnightly for all spot and quarterly contracts on Asia trades.
● Major cut off of flights has resulted in some companies deciding to significantly reduce their staff. In the case of Volga-Dnepr Group, it has grounded almost all their aircraft and even the ones with European certification can no longer operate. In response to the EU shutdown, Russia has allowed airlines that lease foreign aircraft to fly domestically which has caused fury in European lessors.
● New routes alert: there is a new multimodal link from Turkey to Germany via France commemorating the increased interest in the Middle Corridor. Spain is about to launch the construction of a railway line to the port of La Coruña. Maersk is going East as well by announcing a call at the King Abdullah Port. Moreover, it has revealed a new cold storage facility in Houston for imports and exports. Also, Maersk is staying true to its green agenda as it becomes the first shipping line that has signed Amazon’s Climate Pledge initiative demonstrating that the shipping sector understands its responsibility and role in cutting CO2 emissions.
#MAXMODAL #multimodalnetwork #EU #Asia #digitalsupplychain #digitallogistics #ratemanagement #logisticsnews #logisticsandsupplychain #supplychain #sustainability #decarbonisation #containers #containertransportation #containertransport
I’m Margarita Rodriguez from 格瑞丰国际货运代理有限公司 (Great full International Freight Forwarding) which provides maritime and air transport services to different countries in America, Europe and Asia, as well as storage service in China. The certification C-TAPT, NVOCC: MOC-NV0684, WCA Membership: 102390, the recognition of the Chinese Ministry of Communication and many satisfied customers can guarantee that our company complies with all the necessary security standards to provide excellent services.
Hoping that my company will be of your interest a I am available for your further assistance
• Email: vivian@wmmqy811815.wecom.work //// 1633373109@qq.com
• Wechat ID:
MAGO202
Container freight rates of various providers on routes China-US, China-Canada, as well as India to the European Union, have been updated. Please sign in/up to check how competitive your rates are, click «book» to plan your shipment ahead, or push a «chat» in case of any questions. MAXMODAL is a neutral digital multimodal network aimed to automate your operations and boost your sales.
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