Transport Update 10th January

Asia → North America (Transpacific Eastbound)

Rates

• According to the Freightos Baltic Index, rates from China to the USA have decreased this week. 
  • From Asia to the West Coast, rates have decreased by 3% to $13,633 per 40ft.
  • Rates have increased by 1% to $16,705 per 40ft container from Asia to the East Coast.

Ports

• US hauliers fear that the empty container dwell fee at the Port of Los Angeles will see shipping lines delay the return of boxes to the port. 
  • The port has announced that charges on long-dwelling empty containers would be imposed from 30th January. 
  • There are concerns that this could prompt ocean liners to adopt a more restrictive stance on accepting empty boxes. 
  • Starting from 30th January, the port of LA intends to levy charges of $100 for every empty container on the premises for nine days or more. This fee will increase by $100 increments every day until the container leaves the port. 
• The Port of Oakland is intending to facilitate agriculture exports as it pushes for more Transpacific sailings. 
  • It intends to set up a dedicated container yard for this traffic with support from federal and state agencies to ease flows through the port. 
  • Last year, Oakland’s agriculture exports were affected by lack of vessel capacity. Transpacific services were suspended and congestion at LA and Long Beach prompted carriers to skip scheduled calls at Oakland as soon as they discharged their containers. 
• The White House has announced that US port authorities need to ensure that exports aren’t hindered amid the unprecedented supply chain delays.
  • The surge in imports at US maritime hubs has clogged up ports, restricting the flow of containers that are available to exporters.
  • This has affected exported goods, especially agricultural exports which have been left on docks as a consequence.

Asia → Europe (Far East Westbound)

Rates

• Rates have decreased from Asia to Europe.
  • From Asia to North Europe, rates have decreased by 1% to $14,269 per 40ft container.
  • Rates have decreased by 1% to $13,435 per 40ft container from Asia to the Mediterranean. 

Ports

• A train derailment at DP World-Operated London Gateway has caused considerable disruption to port schedules.
  • The derailment has caused significant damage to the tracks.
  • Containers were stuck at inland railheads and now have to be moved by road. 
  • Despite this, the resumption of normal service was resolved a few days after the incident on 4th January. 
• Pressure on UK borders is set to intensify next week as volumes begin to climb back amidst post-Brexit border policies introduced at the start of this year. 
  • Portsmouth International Port said that they were seeing high compliance from hauliers and freight volumes were starting to ‘build back up’. 
  • As volumes return to usual after the holiday season, this will give a clearer picture of how the new processes and systems would fare under normal pressure.

Air

Asia 

 Central China to USA and Europe

• Flight crews are having to wait for COVID tests, or in some cases have tested positive. 

• This has caused some flights to be cancelled to both the USA and Europe. 
• Rates have decreased this week to both destinations. However, rates and space must be checked with the carrier on a case-by-case basis. 
• Covid restrictions are still in place at PVG Airport.
  • Over 40% of cargo flights are cancelled
  • Terminals are at 50% in terms of labour resources
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

North China to USA and Europe

• Rates have remained the same between TSN Airport to the USA and Europe. 

• A Covid outbreak at TSN this week has affected customer factories, trucking companies, terminal yards and warehouses as they are running subject to local control policies. 

• Rates from PEK Airport have remained the same to the USA and Europe. 
  • United Airlines has opened the lane to ORD airport.
  • As we are approaching Chinese New Year, the space is still tight and it is advisable to confirm rates and space 3-4 days in advance. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

South China to USA and Europe

• The air rate has reduced significantly from CAN airport to Europe but has reduced slightly to the USA. 
• At SZX Airport, rates for flights to the USA and Europe have decreased.
• Rates have increased for the USA and Europe from XMN Airport. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

Americas

• The US Federal Aviation Administration (FAA) has released a list of 50 airports that will have 5G wireless buffer zones which will be introduced on 19th January.
  • This comes after concerns from aviation that the deployment of 5G mobile networks could affect flight safety.
  • US aviation groups have voiced concerns that the deployment of 5G mobile networks could result in delays to flights and cargo. 
  • The buffer zones therefore would help to reduce the risk of disruption as traffic volume, the number of low-visibility days and geographic location were factored into the process. 

Europe/UK

• Ostend-Burges International Airport in Belgium recorded a cargo throughput increase of 17.8% in 2021 to 62,056 tons. 
  • This is the best result since 2011.
  • Alongside the airport’s main carrier, Egypt Air, Qatar Airways carried out flights to Ostend. The airport has been included in the Qatar Airways route network since May. 
  • The airport served other temporary customers such as SilkyWay West Airline, Etihad Cargo, Mesk Air and Air Belgium. 
• Boryspil International Airport achieved cargo throughput of 45,675 tons in 2021, a record for the last 4 years. 
  • The Ukrainian airport will begin construction of a new cargo terminal with capacity of 120,000 tons a year as the existing cargo terminal is at full capacity.

Road and Rail