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Market Information 28.04.2021
COVID-19 update: Impact on DACHSER’s operations in India

Due to the outbreak of second wave of Coronavirus, we would like to give you an update about the impact on DACHSER’s operations in India. The situation as of today, April 28, 2021, is as follow:

DACHSER branches in India

  • Most branch offices across India are being kept closed as a precautionary measure due to the sudden rise of COVID cases. Our teams are working from home, with only skeletal staff at the offices and hence there are likely to be delays in responses due to the ongoing crisis.
  • As a consequence of the lockdown, there are some operational impacts for air, sea, customs clearance and domestic trucking.

Air freight

  • Most countries have barred passenger traffic from India leading to no passenger carrying flights operating on International routes from/to India.
  • This has created some additional constraint on already stressed space availability situation.
  • Rates are bound to inch upwards for all sectors.
  • Transit times too have increased as a consequence of capacity crunch.

Sea freight

  • Sea freight was already facing the challenges due to the Suez Canal blockage end of March.
  • Ports and terminals are functioning normally, but vessel schedules are impacted on account of the Suez Canal blockage as well as the sudden rise of COVID cases in India.
  • Delays, roll overs are expected. Customers are advised to factor in delays of 1-2 weeks while planning their inventories.
  • Expect more delays in communication or operations due to increasing COVID infections among staff at ports, customs, CFS and shipping lines.

Customs

  • We do not have any unexpected disruptions in cargo movement in India, nor is any work stoppage expected at present.
  • Customs clearance activities are functional at the movement.
  • Customs is working with less manpower, no Customs Brokers is allowed to meet the customs officials, all processes is done faceless and things are moving in slow phase.

At DACHSER, we have undertaken significant measures to ensure our employees’ health and safety, at the same time continue to manage our day-to-day operations with minimal impact to our customers’ supply chains. Our teams are working diligently by all possible means in these testing times to assist and to overcome the challenges being faced.

Please rest assured that we will keep you updated of any changes to the current situation. hould you have any concerns and/or queries, please feel free to contact your local DACHSER representative in the region.

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News 28.04.2021
DACHSER Chem-Logistics | Chemicals in safe hands

The chemical industry is one of the most successful and competitive industries, supplying virtually all other sectors with crucial intermediate and end products as well as solutions. The prerequisites for this are high production standards, a comprehensive infrastructure, and a customized logistics with a clear focus on reliability, quality, and safety.

Market Information 28.04.2021
Air freight market update | April 2021

Air freight volumes continue to grow strongly, driven by the stabilization of world trade, which is further stimulated by large-scale economic recovery programs such as the one recently announced by the U.S. government.

To illustrate just one example with figures - Frankfurt Airport (FRA), Europe’s largest air cargo airport by volume, reported its most successful 1st quarter ever, with 553,600 air freight tons and a YOY increase of 23.7% (source: fraport).  In addition, the tight ocean freight market is driving rapid growth in air freight tonnages.

The disruption of global supply chains due to capacity and equipment shortages has dramatically worsened with the blockade of the Suez Canal at the end of March.

  • Ever Given – Impact on the air freight business

Four weeks ago, the container ship Ever Given blocked the Suez Canal for one week. During this time, a queue of about 450 container ships was formed to pass the canal. This incident also affects the development of the oil price with an increase by 6% m-o-m April. In addition, the already existing sea freight departure delays will be extended by further weeks.

This incident has implications for the entire global transportation market, especially for the air freight business. The already tight market for air freight capacity will become even tighter, including air charter capacities.

Transpacific air freight rates increased in early April, despite the impact of the Ever Given Suez Canal blockade. An analysis of the Baltic Exchange Air Freight Index (BAI) indicated a 20.5% increase in air freight rates from Hong Kong to North America. The severity of the impact of the Ever Given grounding is yet to be observed, while sea and air capacity will remain disrupted in the coming weeks.

  • Supply & Demand Indexes and Oil Development

Please click the button below to read the latest Indexes on Supply & Demand and Oil Development

In case you need any additional information related to DACHSER’S air freight services and the current market development, please do not hesitate to contact your local DACHSER Air & Sea Logistics sales contact. 

 

Market Information 27.04.2021
Sea freight market update | April 2021

The blockade of the Suez Canal has been lifted and the canal is freely passable again for some time. The backlog of waiting ships has almost been cleared. Carriers are partially stopping the booking freezes and accepting new bookings in some cases. 

Despite this, the situation remains serious. It is expected that the consequences of the Suez Canal blockade will have a strong impact on the service schedules at least until June. Significant delays and congestion at the terminals are expected which could be followed by longer handling times. 

Furthermore, all shipping companies are currently struggling with an ongoing severe shortage of available equipment. In view of the current situation, the availability of equipment will presumably be massively impaired until the end of June.

 

Trade Lane Update

North Europe Ports

  • A critical congestion level has been reached in North Europe’s major ports as terminals are working on the backlog of vessels that were delayed during the Suez Canal closure.
  • To reduce delays at ports, instead of completing a port rotation in Asia or Europe, carriers are considering unloading cargo at major hub ports and turning around early, so that ships arriving a week later can pick up the cargo and carry it to the destination port. This will cause delays in export cargo in Europe and Asia.
  • Equipment Situation - Carriers are warning about short notice cancellations due to missing equipment.

 
Europe - Asia
 

  • Eastbound vessels to Asia remain strongly booked until the mid/end of May. Short-notice bookings can hardly be placed, not even for an extra charge. Sea freight rates remain at a high level. Due to ongoing congestion at major hubs, such as Port Kelang (Malaysia) and Singapore, additional delays of up to 5 days have to be considered. Currently, all services to/from Karachi & Port Qasim (Pakistan) are delayed by approximately 4 to 6 days.
  • Westbound, the already tight equipment situation is further exacerbated by the consequences of the Suez Canal blockade. All available sailings are completely booked. Even on premium services it is extremely difficult to place new bookings. Many carriers have little to no interest in new business as they are struggling with current volumes. Nearly all carriers have announced capacity cuts of up to 60% until further notice. Some carriers are no longer releasing equipment domestically and if they do, it is only for very high fees.
  •   -Blank sailings-
    Mediterranean trade suffers the most in terms of blank sailings with around five services cancelled in the first week of May. In Northern Europe, about 1-2 services will be voided from the first week of May.

 Transpacific

  • -Blank sailings-
    Multiple blank sailings were already announced by ocean carriers for Transpacific Eastbound and Far West Westbound starting from mid-April to mid-May, particularly due to the consequence of the Suez Canal blockade.
  • -Port congestion-
    North America West Coast continues to suffer from heavy congestion due to COVID-19 related impact on port productivity and increased demand. As of mid-April, there are already 30+ vessels queuing for berthing at Los Angeles/Long Beach, where longer lead-time on delivery is expected.
  • Due to the above reasons, carriers could skip calls on short notice, especially for westbound, in order to catch up the overall service reliability.
  • The situation will last at least until the end of May or even June. If it continues to stay like this, the ports and the USA will face further challenges due to the upcoming and historical PSS in August.
  • Ocean carriers are also overwhelmed by the situation - late billings and releases are just the new normal.
  • -Equipment shortage-
    Container availability is already getting tight in early April, while the situation is expected to worsen and becomes critical from end of April to May/June. Ex Far East carriers have already implemented measures to restrict the equipment usage, in particular 40'HC, and prioritize the usage to Transpacific Westbound. Therefore, the equipment availability for the short sea or Asian trade will be affected.
  • An obvious rate increase is expected due to the multiple factors mentioned above.
  • As an alternative to the equipment shortage for full container shipments, DACHSER is offering its expedited LCL Service on the transpacific route. The weekly scheduled direct expedited LCL service from China to U.S. West coast brings average dwell time down from 14-25 days to 3-7 days. 

Transatlantic

  • Equipment Imbalance Surcharges and Peak Season Surcharges are increasing. Additional allocation, if any, will only come against premium fees. Empty equipment is becoming tight rates are at an all-time high. All alliances are having large backlogs and can hardly cover existing business.

Container Indexes

  • Click the button below to read the current development on World Container Index and Shanghai Containerized Freight Index. 

General Recommendations

  • Stay close with your logistics partner at DACHSER for up-to-date market information
  • Provide accurate forecasts to secure equipment and space in time - the more reliable the volume is,  the higher is the chance to get on board
  • Place booking well in advance, we recommend to book at least 4 weeks in advance
  • Inform your DACHSER contact about your priority shipments
  • Be flexible with equipment, consider substitutions
  • Reserve space on air freight services for shipments that cannot be delayed, the rates are slightly higher but it will keep your supply chain running.

If you would like to discuss your transport needs, please feel free to get in touch with your local DACHSER representative to work out the best logistics solution.

News 22.04.2021
The women fighting the coronavirus

Right at the beginning of the corona pandemic, a distribution company based in northern Spain aligned itself with the new market requirements: in 2020, Pharmediq enlisted DACHSER’s help to transport more than 100 million masks and other protective equipment to locations in Spain and other European countries.

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News 21.04.2021
Seamless transport solution for Printed Circuit Boards shipping from Asia to Europe

DACHSER is providing a one-stop solution for printed circuit board (PCB) manufacturer CML. Holistic network and integrated systems are the backbone for the supply chain optimization.

Press Release 19.04.2021
DACHSER Shanghai is recognized as CEIV Pharma Certified by IATA

DACHSER received the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification from IATA for its Shanghai organization including its PVG airport branch in March 2021. This marks the finalization of a project of extensive preparation, complex procedures and detailed auditing, despite additional challenges caused by the global pandemic.

Press Release 14.04.2021
Customer confidence strengthened: DACHSER is satisfied with the year´s results

DACHSER can look back on a successful 2020, which was characterized by the loyalty and climate of mutual trust between the logistics provider, its customers, and its transport partners. DACHSER’s consolidated net revenue totaled EUR 5.61 billion, a slight decrease of 0.9 percent compared to the previous year.

News 08.04.2021
DACHSER Morocco opens new warehouse in Tanger Med

Situated 14 kilometers from the shores of Europe, the Tanger Med port complex is the Mediterranean’s leading container port and a crucial component of Morocco’s ability to compete logistically. In response to growing demand among its customers, DACHSER Morocco has opened a new warehouse in this dynamic area.

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News 06.04.2021
A solid footing worldwide

Homes without any wood-based products from Austrian manufacturer Kaindl/Kronospan are few and far between. Achieving such widespread distribution poses quite the logistical challenge.

Brexit: What remains to be considered

Our Brexit project team has set the course for a functioning and secure logistics network to and from the UK.

Many companies, that depend on the smooth transport of their products, now have to do their Brexit homework to keep their goods moving: Find all the relevant information by clicking on the link below.

LEARN MORE

DACHSER Asia Pacific facts (as of 2020)

485111000
Revenue in EUR (gross, unconsolidated incl. import duties and sales tax)
48
Locations
309500
Shipments
More