Transport Update 20th October

Welcome to the Zencargo weekly freight market update – the latest news from our freight and procurement teams on the real experience of shippers.

This week: $2 billion worth of imports at risk due to disruptions at Felixstowe

• Ocean

• Air

• Road

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In Focus: $2 billion worth of imports at risk due to disruptions at Felixstowe

A new report conducted by risk modelling consultants, Russell Group, has said that billions of dollar’s worth of imports would be impacted in the run-up to the holiday season due to the situation at Felixstowe.

Felixstowe is currently struggling to cope with the volume of cargo and has become severely congested. A lack of HGV drivers, the surge in demand for the Christmas peak and the pandemic has resulted in a build-up of containers. To manage this, the port of Felixstowe has halted restitution of empty containers for several major carriers.

In response, businesses need to be flexible and responsive with haulage spots due to port disruptions and possible last-minute haulier cancellations. It is advisable to forecast ahead of time to prevent the accumulation of added fees such as D&D fees and restitution charges.

Ocean

Asia 

1. US market

• • Strict control measures at PVG airport have resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
  • Continued ocean freight issues, tech product launches and Christmas stock continues to contribute to high airfreight demand this week. 
  • Market rates are high due to lack of capacity and high demand.
  • Large shipments should be booked well in advance to allow time to find space.
  • Rates and space must be checked on a case-by-case basis. 

2.  EU market (base airport like FRA/AMS/LUX, etc)

• • Strict control measures at PVG airport has resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
  • Continued ocean freight issues, tech product launches and Christmas stock continues to contribute to high airfreight demand this week. 
  • Market rates are high due to lack of capacity and high demand.
  • Large shipments should be booked well in advance to allow time to find space.
  • Rates and space must be checked on a case-by-case basis.

3. UK market

• • Strict control measures at PVG airport has resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
  • Continued ocean freight issues, tech product launches and Christmas stock continue to contribute to high airfreight demand this week. 
  • Market rates are high due to lack of capacity and high demand.
  • Large shipments should be booked well in advance to allow time to find space.
  • Rates and space must be checked on a case-by-case basis. 

Americas

• Rates into Asia, UK and Europe remain mostly the same this week
• USA is set to lift travel ban for most noncitizens from November, so long as they are vaccinated. The eased rules are expected to drive up demand for transatlantic travel. This is good news for the air freight industry as this will no doubt bring more flights and capacity for cargo. 
• ORD is still over capacity and there are issues over release updates. Forwarders are having to send in trucks to collect without knowing if freight is ready and the ground handling agents aren’t answering their phones 
• Forwarders are choosing to use smaller airports as much as possible as there is less congestion. Freight rates will be higher but there is less chance of incurring additional costs for attempted pickups, waiting time and storage. 
• LAX is still a challenge, there are usually waiting time charges applied to most shipments due to the long queues to collect/deliver into the ground handling agents warehouse

Europe/UK

• Rates into Asia and North America remain stable as there seems to be enough capacity to meet demand.
• USA is set to lift travel ban for most non-citizens from November, so long as they are vaccinated. The eased rules are expected to drive up demand for transatlantic travel. This is good news for the air freight industry as this will no doubt bring more flights and capacity for cargo.

Road

UK Haulage

Lorry driver shortage: Government to lift rules on foreign haulier deliveries

The rules on the number of deliveries that overseas lorry drivers can make in the UK are set to be relaxed in a bid to tackle supply chain problems in the run-up to Christmas.

Under the new plans, drivers will be able to make unlimited deliveries or collections within a 14 day period. Currently EU drivers can only make two pick-ups or drop-offs each week.

Irish-French sea connections reach 44 with new Dunkirk terminal

A new Irish terminal has been opened at the French ferry port of Dunkirk, with Ireland-France sea routes rising from 12 before Brexit to 44 now.

The new terminal has already handled nearly 50,000 freight units (trucks and unaccompanied containers) moving from Rosslare and back, as exporters side step the UK land bridge.

European Bank Holidays – October 2021

October 23rd = Hungary and Macedonia

October 25th = Cyprus, Czechia, Greece

October 26th = Austria

October 29th = Turkey

October 31st = Germany (Regional) and Slovenia

The route ahead

The information that is available in the Weekly Market Update comes from a variety of online sources, partners and our own teams. Click below to learn more about how Zencargo can help make your supply chain your competitive advantage.

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