On top of logistics: Market update

Updated on July 14, 2022

On Wednesday, July 13, carriers of ground freight and rail services in and out of terminals at the ports of Los Angeles and Long Beach interrupted their work to protest against a controversial state law, known as "AB5", which seeks to limit the activity of independent contractors, who should now be classified as employee drivers.

Carriers from the Port of Oakland decided to hold a similar demonstration on Monday (7/18) and workers from other ports on the West Coast of the United States (USWC) can join the initiative.

Ports in Northern Europe are facing similar situations.

Visit?On top of logistics website?for the complete information and our best recomendations and alternatives –?también disponible en espa?ol.

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Last week, the?BBC?commented on a specific cluster of “The Great Resignation” global trend that directly affects our industry: the staff shortage slowing down transport operations.

?"There is enough capacity in the air but there's not the capacity on the ground," Niall van de Wouw, chief air freight officer at Xeneta says. "Whether it's truck drivers, or people loading ships or planes, or people in warehousing, there seems to be a global issue of finding operational people at the lower end of the pay-scale," he adds.

Do you feel the staff shortages are affecting your supply chain? Leave your comments below!

LATIN AMERICA

With?own offices in the different countries of the Latin American region,?we can design great logistics solutions to lead out of the crisis and take full advantage of the new market trends.?Give us visibility of your needs?and we’ll advise you in the best way.

Chile

"Chile exported 1,856,000 tons of fruit between January and May 2022. Compared to the same period of the previous year, there was an increase of 6.6% in the volume exported," reports?Mundo Maritimo.

To be the best strategic partner in logistics for the perishable industry in Chile,?Europartners Group has developed the vertical EP Fresh, dedicated to the precise coordination of the export of products with very specific temperature requirements.

Click here?to learn from the director of the vertical EP Fresh the prospects for the export market of perishables, mainly from the South America to Asia.

Mexico

Mexico's National Customs Agency (ANAM) is implementing the Electronic Customs System (SEA) and The Notice of Crossing (AVC) to replace DODA and PITA as of August 1. In this testing period, it is important to know the obligation of carriers and customers.

The Confederation of Associations of Customs Agents of the Mexican Republic (CAAAREM) organized a master class on the subject.?Click here?to watch the recording.

Also related to Mexican customs: Our specialists in Mexico have assembled a multimodal committee to implement all the necessary processes related to?Carta Porte Bill of Lading. Do you still have some doubts about it??Read our blog?and write us at:?[email protected]

Unfortunately, road cargo theft continues to increase in the country. According to data published by?T21, road robberies have increased by 8% in the comparison of the 1st quarter of 2021 with the same period this year.

Protect your cargo to the fullest. In case your company does not have an insurance plan, our teams can offer you options.

Exclusive offer for consolidated air cargo import! Talk to our teams about the?EP Gateway?solution: we can consolidate your cargo collected in Austria, Belgium, Czech Republic, Croatia, Denmark, Finland, France, Holland, Hungary, Ireland, Italy, Norway, Poland, Slovenia, Sweden, Switzerland and United Kingdom, and send it to Mexico on a direct flight to mitigate risks while handling the cargo.

We have?teams at AICM customs with priority to move your pallet?avoiding waiting hours or days for the complete unloading and airline documentation. Plus, rely on the possibility of making internal transits to different airports in Mexico with the option of daily departures, saving you from 4 to 7 days to receive your cargo and eliminating transfer costs.

?NORTH AMERICA

?Canada

?Prince Rupert port?average vessel waiting time remains in 14 days. Dwell time: 5 days. Visit?On top of logistics website?to get more info on Canadian ports.

?United States of America

?Due to the increasing congestion at the US inland hubs, carriers are already reducing IPI intermodal bookings. Inland rail ramps including Chicago, Kansas City and Memphis are facing severe chassis shortages. Congestion at Los Angeles and Long Beach ports shall increase with more containers spending longer dwell times on dock. Railroads are struggling to supply LA/LB with sufficient stack cars to cover the inbound volumes.

Visit?On top of logistics website?to get information on East Coast, West Coast and Gulf ports & more.

Market -?Between May 2021 and May 2022, there was a 73.2% increase in the price of fuel – which represents almost 30% of the ground transportation fee. Between June 2021 and June 2022, the national average rate in the US has increased by 21%.

?Although the amount of cargo waiting for a truck unit has decreased quite a bit, Texas is still the state most impacted by carrier shortages (more than 5 loads per unit), followed by Arizona, Arkansas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, Florida, the South and North Carolinas and Virginia, all with an average of 2 loads waiting, for each unity available.?

EUROPE, MIDDLE EAST AND áFRICA

The newest Accenture report about the future of supply chains in Europe shows that “depending on the length and severity of the war, the cost of supply chain disruption in the Eurozone across 2022-2023 could amount to €242 billion (2% of GDP) in an ongoing war scenario, or €920 billion (7.7% of GDP) in a protracted war scenario.”

?Logistics breakdowns have a huge impact on that scenario – which also means that strengthening your logistics strategies is fundamental to keep your supply chain running smoothly.

Visit?On top of logistics website?to get the link to the complete study and more information on the EMEA region.

?Germany

?The situation in ports is getting better. However, we still need to arrange booking 2 weeks ahead. Booking shipments directly out of German ports is a good option to avoid roll overs.

?Air freight: Fuel surcharges are still impacting rates.

?Italy

?Air freight: Agents are now able to maintain rates up to 3 days but are still asking to provide a target or a “range” of acceptable prices, so to allow us to confirm/book immediately.

?ASIA

The Loadstar reports that “Asia-Europe ocean carriers are cracking down on rogue shippers who incorrectly declare westbound booking container weights and make last-minute verified gross mass (VGM) amendments”. We suggest you reading the full article?clicking here.

?The ocean carriers that provide service?from Asia to U.S. & Canada?have announced a General Rate Increase (GRI) and an Emergency Intermodal Charge (EIC) applicable to all intermodal shipments from Asia to U.S. via USWC/USEC/Canadian ports.

China

On December 23, 2021, President Biden signed into law the Uyghur Forced Labor Prevention Act (UFLPA), which “establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the?Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities,?is prohibited?and that such goods, wares, articles, and merchandise?are not entitled to entry to the United States”.

It went into effect on June 21, and the Commissioner of U.S. Customs and Border Protection (CBP) has?released importer guidance?to assist the trade community in preparing for the implementation of the UFLPA.?Click here?to access it.

Market –?The peak season can last until December due to delays caused by blank sailings. Rates in July should increase every week and perhaps more frequently starting in August.

High shortage of spaces in Qingdao and Ningbo. Space in general from Asia to North America is a bit tight with increasing blank sailing and vessel delays. The high demand generates more rate hikes and most carriers set weight limitation per TEU, including tare.

Berthing time on ports:

Hong Kong: 1 to 2 days

Kaohsiung / Taipei / Taichung: 1 to 2 days

Ningbo: 2 to 3 days

Pusan: 1 to 4 days

Qingdao / Xiamen: 1 to 3 days

Shanghai: 1 to 4 days

Yantian / Shekou: 1 to 2 days

Access?On top of logistics website?to get more market updates on Asian countries.

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To provide you with more information, quotes, reservations and a consultancy in multimodal logistics solutions tailored to your most specific needs, contact us right now by sending an email to:?[email protected]?or calling from Mexico to 800 888 EURO (3876).