International Trade Update: March 2022

Chinese authorities tightened the COVID-19 measures at ports, increasing the risk of trade disruptions as the government attempts to fight the coronavirus outbreaks. The southern Chinese port city Shenzhen has started a seven-day COVID-19 city-wide lockdown, which is impacting landside logistics. The restrictions come at a time when the global economy is under pressure from the Russia/Ukraine conflict, rising oil prices, and weak consumer demand.

Vessel delays, Port delays, and ongoing vessel rescheduling remain predominant worldwide, and this has directly impacted cargo movement and transit times. Extended cargo lead times remain crucial, as vessel delays from all ports and especially transshipment hubs continue to persist. Published transit times, sailing schedules and ETAs are subject to change as per carrier schedules.

The Omicron variant continues to impact the air freight operations worldwide resulting in flight cancellations and lockdowns. Oil and jet fuel prices continue to increase.

Sea Freight Updates

EUROPE

• Major ports in Europe are experiencing congestion due to recent storms. Delays are ranging from 4 to 6 weeks.
• Congestion is at a high level in Germany, Netherlands, and Hamburg.

ASIA

• Shanghai-Ningbo operates normally with typical congestion. COVID-19 cases in Suzhou city may affect the situation.
• South China (Yantian) normal operations with a 4-day waiting period.
• Asia and India are affected by a lack of containers.
• Transshipment hubs remain congested in Singapore, Tanjung Pelepas.

?

AMERICA

• West Coast –Vessel waiting period is up to 35 days due to yard congestions, high import dwell, and labor shortages.
• East Coast – Vessel waiting period is between 10-16 days due to labor shortage and high import volumes

AFRICA

• Delays continue in the Cape Town terminals due to high cargo volumes. Vessel berthing estimated waiting period is 7 days.
• Port Elizabeth CFS is experiencing high cargo volumes; however, operations are proceeding smoothly.

NB: MSC will be recalculating (GFS) Global fuel surcharge on a fortnightly basis tariff instead of a monthly basis tariff as of 15 April 2022.

Air Freight Updates?

?CAPACITY

• Capacity reduction due to the fact that the Russian fleets cannot fly over Europe. The EU-owned fleets cannot fly over Russia due to sanctions.
• With COVID-19 and lockdown situations in China, airports are being impacted by COVID-19 restrictions and this impacts service, causing backlogs and constraints on capacity.

RATES

• Rates are all-time high due to increased fuel prices and demand-supply imbalance.
• Airfreight rates have increased by 200% since COVID-19

FUEL

• Price increases in jet fuel could potentially result in the introduction of a fuel surcharge.

Express updates

TRANSIT TIME

• Service from/to Suzhou City is temporarily suspended.
• Most express couriers are temporarily suspending services from/to Shenzen, China.
• Longer transit time from China to Europe

Trucking Updates

CHINA

• Trucking services can only move within Shenzhen city, movement in or out of Shenzhen city is restricted
• Some cities require periods of quarantine for individuals that return from Shanghai, this results in pressure on human resources and timeliness of trucking services.
• Limited trucking between Hong Kong and Shenzhen due to the COVID-19 outbreak.

?AMERICA

• The shortage of truck drivers is still the main challenge in the United States.
• Ongoing protests against COVID-19 mandates in Canada have severely affected supply chains.
• Gasoline prices are at a record high.

Sources;

Air freight prices reach new heights | Delano News

Covid-19 causing major traffic congestion in China's leading port of Ningbo — MercoPress

COVID curbs bite at Chinese ports, threatening global supply chains (msn.com)

Covid outbreak in China - update - DSV - Global Transport and Logistics - ??????? ???????

Customer Information | DB Schenker

Shenzhen’s cross-border merchants throw their arms up in despair as Ukraine crisis, Covid-19 lockdown create perfect storm | South China Morning Post (scmp.com)

US Ports Congested but Record Import Levels Expected | Material Handling and Logistics (mhlnews.com)

* All Pictures are obtained from Microsoft word