Trade Lane Update
From Poland to Haifa – Steel colossus for the Mediterranean
The new container bridges for the Port of Haifa made their way from Poland through Hamburg and on to the Mediterranean Sea. DACHSER Air & Sea Logistics took on the job of transporting these disassembled ship-to-shore container bridges, consolidating various parts from suppliers all over Europe—a project of epic proportions.
Packaging suitable for stress and transport to prevent damage
Especially in the current uncertain economic situation, the main focus is on safety and ability to deliver. The damage-free transport of goods is essential for this and requires packaging that is suitable for stress and transport. In the following, we would like to give an overview of damage prevention through packaging.
A new take on supply chains
The global economy is picking up once more. But the sharp rise in demand has to navigate not only the continuing pandemic but, increasingly, also material shortages. This presents a historic challenge and a real test for supply chains and global networks. Completely abandoning globalization, however, is not an option.
“I was always curious”
As COO Air & Sea Logistics, Edoardo Podestà has been at the helm of DACHSER´s global air and sea freight business since October 2019. As an Italian living in Asia, he knows both cultures; and has gained experience in various responsible management positions on the international stage.
DACHSER performs warehouse tests for automated guided vehicles
Tests of automated guided vehicles are currently underway at two DACHSER locations. By performing routine tasks, these vehicles will lighten employees’ workloads long-term.
DACHSER USA expands branch in Phoenix
DACHSER USA announced that it opened a new, larger office facility in Phoenix in the US state of Arizona. This expansion is in response to the increased customer volume within the region, as well as growing logistics demands along the US-West Coast.
The new DACHSER magazine is here!
It’s not often that logistics topics feature as prominently in the daily and business press as they have over the past few months. The global economy is recovering from the shock of the pandemic and in many places production is once again running at full speed. However, articles about the shortfall in raw materials and products, too few containers and pallets, the driver shortage, and a lack of storage space on overland, sea, and air transports are putting a damper on this revival.
Chinese Golden Week holiday 2021: impact on logistics
The October Golden Week holiday in China is soon approaching. Here is all the information you need, together with some market forecasts.
- What is Golden Week?
Golden Week is a week-long holiday in China. It starts on October 1 which is the country’s National Day, and the holiday extends to October 7. Normal business resumes on October 8.
- What will happen during the Golden Week?
During the seven-day public holiday, almost all businesses, factories as well as government organizations will be closed or low-staffed. This means that production will be slowed down or completely stopped. Airports, sea ports and warehouses will be operating with limited capacity and Customs offices will be closed.
DACHSER Branches in China will be closed from October 1 to 7.
- How does the Golden Week impact transport logistics?
The pre-holiday rush usually starts 3-4 weeks before the October 1 National Day holiday with shippers wishing to speed up production to stock up and ship their cargo out from China before the long break.
Since the capacity is rather at the lower side and it would affect the normal export / import operations. Shipping lines often announce blank sailings in order to adjust their services to the low market demand. Blank sailings start as early as week 38 for some carriers and normal schedules will resume as late as week 42. This year the situation is very dynamic due to severe port congestions and service disruptions that are already happening, carriers may not have artificial blank sailing programs, service conditions may differ from individual shipping lines and routes, please contact your DACHSER representative for details.
If you have any incoming shipments, kindly ensure they are picked up before the holiday to avoid unnecessary storage or detention costs.
Currently the sea freight market is very tense with port congestions, delays and lack of equipment. The recent Typhoon Chanthu worsened the situation with extreme weather conditions, forcing major ports including Shanghai and Ningbo to close for a few days. Space remains critical and rates could be further soaring until the end of the year. Advance booking of 6-8 weeks is needed to secure a space.
For air import, only shipments with pre-booking notice will be handled. Chinese customs will not accept import clearance during the holidays, therefore, import shipments may not be processed on time.
For air export, it is suggested to send bookings or instructions to us as early as possible before the Golden Week. The cut-off time for economic orders is September 29, 12:00 noon China local time. For emergency orders, the cut-off time is September 30, 12:00 noon China local time.
As it is often that air freight space will be very tight and equipment will be in high demand during the traditional pre-holiday period. This year with the severe disruption at Shanghai PVG Airport with the lack of ground handlers, together with the congestion in all other Chinese airports, the supply chains will be under great challenges due to continuous capacity shortages. This situation will inevitably result in longer lead times and higher rates.
For westbound LCL shipments, the last departure before the Golden Week holiday will be in week 39, and the service will resume in week 42. Other regular services are not impacted but are subject to capacity and equipment availability. Chinese customs will be closed during October 1 to 3 and low-staffed from October 4 to 7, customs clearance may not be performed in time due to limited manpower.
Based on historical records, orders peaked two weeks prior to the holiday. This year, despite the pre-holiday rush, capacity in September is already very tight. As a consequence, the rate level for October is anticipated to increase due to strong demand.
- Our recommendations
Autumn peak season will immediately follow the Golden Week. Given that the current market situation is very tense, we recommend long-term planning and advance booking to avoid disruptions to your supply chain, even after the Golden Week event. Kindly consider the following:
- Communicate your needs and shipment deadline with us so we can offer you the most suitable solution that fits your budget.
- Prepare an accurate shipment forecast well in advance for long-term planning.
- Place bookings as early as possible; the earlier you book the higher the chance you have to secure a space.
- Stay tuned to the latest market news, this will enable yourself to plan proactively and react to sudden changes in a timely manner.
At DACHSER, our team is trying its best to provide you with the latest and most relevant information, so that we plan the next steps together. If you have any questions, please get in touch with us, we will be happy to assist you.
Sea Freight: Current situation in the USA
The existing bottlenecks in the US ocean freight market, which are lasting for quite some months already, will continue for a longer period. We would like to give you an overview of the current situation.
Port and rail congestion
Already for months, the USA is experiencing historical congestions in sea freight business. The reason for this ongoing situation is well known: COVID-19 impacts and a high volume demand creating bottlenecks at all major ports and terminals throughout the country. Port and rail operators are operating with reduced staff, which delays loading and unloading of vessels, increases dwell time and slows down transportation processes to the terminals. Ocean Carriers are also overwhelmed with the situation and struggle to provide the needed service and timely response. Ocean vessels are having several days of delay and we experience port omissions on a regular basis. Schedule integrity remains almost non-existent.
US trucking situation
Trucking companies suffered heavily at the beginning of COVID-19 and were forced to let go many of their drivers due to the drop of volume and demand. Then, the boom of freight and demand hit the US market and at this point, not enough drivers were available. The driver situation improved over the last months but the current trucking fleet does still not cover the strong demand. Truckers are overbooked for the next 3-5 weeks. To accelerate the pick-ups and deliveries, LTL and FTL can be an option to arrange transloads into/from containers at designated warehouses.
Chassis in the US
It becomes a great challenge that almost all containers are stuck somewhere on chassis, waiting for transport. That leads to the problem that empty chassis are hardly available to arrange a pick up. Chassis are fully used and become a rare commodity in the US.
US inbound freight
The ports and rail terminals infrastructure in the US is simply overwhelmed by the current import volume. Inbound containers are parked on certain spots to make room for the new vessel / train loadings. In many cases, these "parking lots" are completely overstocked and containers are buried and not available for immediate hand over. In order to arrange a pick-up, the terminal provides appointments to truckers ONLY once the container is available and customs released - which can take days and even weeks in many cases.
US outbound freight
The main challenge is to find the desperately needed container equipment as well as the chassis for the transport. Ports and rail terminals are also full of export containers and the stations are not simply accepting export loads that easily. The situation is tight and almost every shipment is experiencing severe delays.
We estimate that the situation in the US will not improve this year. Even 2022 will continue to be challenging but the team of DACHSER is aiming to provide our clients a good service and solutions despite the challenging times in the USA.
High Priority Cargo
Currently, it is possible to achieve better transit times and shorter turnaround times at the US terminals by using LCL services for prioritized shipments instead of FCL services. DACHSER operates regular premium LCL services on both ex-Asia and Europe trade lanes. Transit times ex China, for example, are even shortened from overall 28 to 18 days. And further, new pipeline services including Atlanta and Los Angeles aim to reduce booking windows immensely. The continuing tight situation in the US ocean freight market will also require that desperately needed freight will have to be loaded more often by air. DACHSER offers regular premium capacity with its own Air Network, for example with weekly connections on the Frankfurt - Chicago route in both directions and the option of connecting to other US airports.
We are in close contact with carriers and service providers on a daily basis and do our best to make your supply chain as smooth as possible. For individual advice, please contact your local representative of DACHSER so that we can implement the best logistics solution for you.
DACHSER expands its Willebroek branch
DACHSER is investing in its branch in Willebroek near Antwerp, Belgium. The expansion of the cross-docking and on-site parking facilities started this summer and is planned to be completed by the end of the year.
Vaccine for Berlin
Fighting the pandemic with vaccine, PPE, and intelligent logistics. Berlin’s senate is procuring its vaccine logistics services from a tried and true partner: DACHSER’s Berlin Schönefeld branch.
Successful implementation of the Global Air Freight Security Network of DACHSER
The issue of security is of paramount importance when it comes to the worldwide transport of your air freight. To enable DACHSER to support its customers even better in maintaining a secure supply chain, the "Global Air Freight Security Network" project was launched in 2020 by the Air Freight Security Team at DACHSER and has now been successfully implemented.
The goal of the Global Air Freight Security Network is to strengthen the global network of DACHSER. The introduction of a worldwide organization with local contacts will result in more efficient communication between the Air & Sea Logistics locations, enabling a faster reactivity to new regulations and innovations. In addition, a faster implementation of standardized processes of DACHSER worldwide will be enabled.
The implementation of the project will further reduce the risk in the area of air freight security to ensure transportation through strictest compliance with all regulations.
If you have any questions, please contact your local DACHSER representative.
DACHSER expands consolidation services portfolio in sea freight
The logistics industry is going through challenging times, characterized by capacity bottlenecks, continuous shortages of equipment and allocation as well as severe port congestions across the globe, causing a domino effect that is difficult to control.
Rail service market updates | July 2021
- FLASH UPDATE NEWS
Due to general Congestion's on the Transshipment Points in Kazakhstan, Mongolia, Russia and Poland we are facing huge delays. This is mainly caused by actual wagon shortage on 1520 tracks thru the CIS-Countries (Commonwealth of Independent States).
Some major Operator announced an existing backlog of more than 2000 FEU on the border station in Poland. The overall transit time from Terminal to Terminal can extend to approx. 30 days
Space and Equipment availability can be secured with a pre-booking of at least 15 days in advanced
For further details please reach out to your local DACHSER Air & Sea Logistics contact.
- DACHSER Rail services
In addition to our air and sea freight service portfolio, DACHSER offers multimodal, reliable rail services with an extensive coverage, connecting economic centers of major importance in China and Europe.
Via the North Corridor, the so-called Trans-Siberian Route, we connect Hamburg, Warsaw, Vienna and Bratislava with Chinese main terminals cities like Changchun, Shenyang, Suzhou and Dongguan.
To and from Duisburg, Hamburg, Neuss, Ludwigshafen, Vienna, Bratislava and Warsaw we serve the South Corridor, also known as New Silk Road to the Chinese hinterland areas of Xi'an, Chengdu, Chongqing and Zhengzhou.
Not only Block Trains but also Full Container Load (FCL) service is possible on this service and also Less-Than-Container-Load (LCL), it includes Consolidation Container Services (LCL-LCL) as well as Customer Consolidations (LCL-FCL).
Should you require any other departure terminals and/or destinations than those mentioned above, or some more detailed information on Rail Services, your DACHSER contact will be glad to assist.
Air freight market update | July 2021
Strong consumer demand has lifted global air freight volumes back to pre-COVID levels. The recovering economy and the rise of e-commerce are remarkable growth factors. In addition, over-priced and unsustainable ocean freight forces customers to shift urgently needed shipments from sea to air freight.
In relation to container shipping, the price for air cargo has dropped significantly, being only 6 times more expensive in May 2021 compared to 12 times prior to the crisis, making air cargo more competitive. In addition, the overall situation in the ocean freight market causes raising demand in air freight.
The air freight capacity will remain restricted due to missing belly space and it is expected to take years to recover the passenger flight capabilities. This global imbalance of demand and supply is expected to continue and rates will be on the upper level for the next upcoming months.
Already well established for an extended period of time, DACHSER has created additional capacity by offering weekly premium freighter capacities
- one-way from Asia (Hong Kong & Shanghai) to Europe as well as
- rotation between Europe and the US.
The latest new DACHSER Air Network connection has been established in June and July with eight flights from Hong Kong to Mexico via Canada. Find out more information about this service.
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.
Sea freight market update | July 2021
Historical congestion levels are resulting in vessel delays that are absorbing hardly required cargo capacities. Increasing operational instability due to COVID-19 outbreaks in US West Coast terminals and one of Chinas main ports as well as the global equipment imbalance had led to another major disruption of worldwide supply, following the Suez Canal incident. Consumer demand is expected to increase rapidly in 2021, so transportation delays are likely to continue into 2022.
European ports are still suffering from delays, with the result that most vessels are not being cleared on time. This is caused by the exceptional weather conditions of the past weeks as well as ship delays from ports worldwide.
In the meantime, almost all terminals have introduced emergency plans with different measures. Containers, for example, may only be delivered or picked up with a severely restricted deadline. This mainly affects the Port of Hamburg, but Antwerp and Rotterdam are now also reporting significant delays.
There is a massive shortage of equipment, especially in the inland, but also at the ports. Shortage of 20’ equipment is to be expected within the next weeks as per carrier forecasts.
Europe – Far East
While space is moderately available the equipment situation in Europe is still critical although the first improvements are visible. Carriers have already implemented an Equipment Imbalance Surcharge until further notice.
Europe – South America East & West Coast
Higher rate levels are to be expected due to increasing demand. Santos port congestion improved slightly. Equipment imbalance and tight capacity conditions are still in place.
Port situation in Mainland China
- Terminal operations at Shenzhen's Yantian International Container Terminal (YICT) are back to normal and the handling backlogs at Yantian are resolving.
- The congestion at Shekou and Nansha is still at a high level. Overall, the situation is improving day by day as the number of infections in Guangzhou and Shenzhen is under control now.
- Although the YICT terminal operation has improved significantly, the equipment shortage is still at a very high level due to too many vessel cancellations in June, and the stability of the schedule is also far below normal.
Far East – Europe
Loading capacity and empty equipment are still very limited without any forthcoming recovery for the next weeks to come. Schedule recoveries and port omissions in Asia will further decrease space and allocation.
Far East - South America East Coast
The congestion situation in Santos has improved slightly but tight space and equipment shortages are still a major trigger. Rates are increasing strongly due to high demand.
ISC – Europe
The empty equipment situation has improved slightly. Nevertheless, equipment is still an issue in East India regions. Space situation is extremely tight.
The shortage of equipment throughout Asian ports and carriers is continuing. An improvement in the shift of equipment back to Asia is not expected in the near future. Capacity issue is not improving mainly due to congestion across all USWC ports. Service delays and schedule cancellations for ports are continuing and are unpredictable and difficult to manage.
Record-breaking volumes coming into the country because of the economic recovery and funding programs, resulting in heavy delays due to a lack of rail cars and a shortfall of available chassis. Truckers are booked two to three weeks in advance.
Record temperatures and the associated heatwave have had a major impact to the Pacific North West and Canadian Ports.
- Equipment is in short supply and expected to remain this way for some time as it gets tied up at multiple inland gateways.
- New services have been added, relieving some of the pressure on capacity. Advanced bookings remain essential.
- Dwell times in the US are at high levels, terminal and port congestions causing further impacts. Multiple port omissions in the US continue to impact schedule integrity. Eastbound space is getting tighter.
- Click the button below to read the current development on World Container Index and Shanghai Containerized Freight Index.
- Stay close with your logistics partner such as 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 bookings 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.