Transport Update 27th 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: The White House has intervened to alleviate congestion at US ports

• Ocean

• Air

• Road

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In Focus: The White House has intervened to alleviate congestion at US ports

Bottlenecks at US ports threatens to disrupt the holiday season for millions of Americans. With just over 10 weeks until Christmas, the White House is finding alternatives to ease the congestion of vessels.

The government is searching for new areas for container storage and is looking at additional workforce training to mitigate the lack of labour resources. The US is also identifying freight routes that may need more road vehicles.

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. 
  • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the USA have increased.
  • 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 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. 
  • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the Europe have increased
  • 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 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. 
  • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the UK have increased.
  • 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

• The airfreight market is slowly beginning to stabilise, but this depends on the trade lane in which the shipment is moving. Some airlines are beginning to publish tariffs again and honouring. them when space is available. Other airlines are still not publishing rates or schedules. Depending on destination and the backlogs, some airlines will only move cargo on express or priority rates. 
• 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 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.

Road

UK Haulage

Be Prepared – New Import Controls EU-to-GB from 1 Jan 2022

Europe is suffering from a shortage of 400,000 drivers, with much of the demand based in the UK, a situation expected to get considerably worse by January, when new UK-EU border controls come into force.

Changes to take effect on 1 January 2022

• Full customs declarations and controls
• Pre-notification of Sanitary and Phytosanitary (SPS) goods (extended from 1 October 2021).

Advance Notice – Trailer Availability

Please be aware that there is a European bank holiday on the 1st November therefore we anticipate shortage of availability and delays are likely to occur. Plan ahead and allow extra time for your products to be delivered.

European Bank Holidays

October 2021

October 26th = Austria

October 28th = Czech Republic, Cyprus, Greece

October 29th = Turkey

October 31st = Germany (Regional) and Slovenia

 

November 2021

1st November = Austria, Belgium, Bosnia and Herzegovina, Croatia, France, Germany, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain, Switzerland

2nd November = Belgium (Regional), Lithuania

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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